KISS Formula

There are expressions for just about everything,
but it have been shown that the simpler the
expression or method of doing a peculiar task
the better it works. It have evolved down to
kiss – Support It Simple Stupid.

This also uses to trading in the stock
market. There are literally 100s of
formulas, both technical and cardinal that
are easily available to investors. Each trader
have his ain method he uses. Every professional
bargainer on the flooring of the stock exchange has
his ain fluctuation on some major proven
formula. The more than than skilled he goes with it
the more he experiences it is the best one.

Sometimes it takes old age for a bargainer to
settle down on one method or grouping of methods that
he utilizes to signalize bargains and sells. It took me
many old age to happen that technical grouping that
worked for me when I was an exchange member.

For some it evolves into long term trading
and for others it can be purchasing and merchandising in
a matter of minutes. The clip time period is not
important. The method is. Even as a floor
bargainer on the trade goods exchange Iodine had only
two criteria I watched before entering into
any position.

All professional bargainers and investors are
aware of the single most of import fact and
that is how much I am willing to lose before I
go out this new position. Every kiss expression has
an issue strategy. Every professional cognizes in
advance how much he will allow himself to lose
if he is wrong. The professional person makes not set
a bounds on the winning side of a trade only on
the losing side.

Ask any full clip professional and he will
state you if he is right 50% of the clip he
sees that to be phenomenal. When I was on
the flooring I was only right about 40% of the
time, even about 20% and incorrect about 40%. BUT
Iodine made $3.00 for every dollar I lost. Small
losings and large victors are the cardinal to success. This is the cardinal to any profitable expression –
keeping the losings small.

When I see ads in the financial
document for methods claiming to be right 80%,
90% of the clip I cringe. It just can’t be. There is no bargainer I ever met who was that
good and I have got known some exceptional
traders.

The major textual matter on technical analysis is
“Technical Analysis of Stock Trends” by
Jonathan Edwards and Magee now in the 17th printing of
the Fifth Edition that listings battalions of
methods. They all work, but many are
complicated. A magazine called Futures Truth
analyses 200 trade goods trading systems in each
issue. Cardinal Theory is equally complex.

There are software programs that allow the
investors to come in as many as 30 parameters. The more than composite it is the less opportunity it has
to work. And the biggest obstruction to any
programme is the bargainer himself. He cannot
waver when a bargain or sell signaling is given.

Keep your expression simple and carry the
signals. You can be a winner.