The risk in this strategy is very limited in that the stock can never go below zero, and if the trade is of an index or a commodity then the danger of insolvency is removed as well. So all in all this is an excellent trading system, and it's certainly not done Warren Buffet any harm.
But what about those of us who don't have WB's billions to trade with? What stock market trading systems can we turn to in order to minimise risk and maximise profits?
Well, we want a system that will collect and display sufficient (but not too much) information about the stock or other security that we're trading. It has to take into account our own targets and vulnerabilities, the capital we have available and any handicaps, such as limited time availability, that we have to deal with. Having regard to these, it has to develop rules that we can easily understand and obey.
This is quite basic, yet the situation is confused because there are hundreds of systems of various kinds available for sale on the internet, all claiming to be capable of making you thousands a week in profits, and nearly all being sold by people who never actually trade on the stock market. They can therefore largely be ignored as being of no use in the real world.
The remaining systems nearly all incorporate one or both of the two main techniques that have been around for many years - fundamental analysis and technical analysis.
Many successful traders are fully committed to just one or the other, so clearly opinions vary on which one is the more reliable when making your trading decisions. But it seems most of the very successful traders use both methods.
Let's take equities as an example. It must make sense before making a trading decision to check one or two fundamental indicators that may affect the price direction of the stock. If the price has been rising steadily it may be that buyers have been active ahead of a profits announcement due in a couple of days. If the profits are high this might have already been discounted in the market, and if they are disappointing the share price will probably fall.
If you're a committed technical analyst then you would probably not take any notice of such matters, relying solely on the chart of the price history, and some chart-based indicators. Certain indicators may show a danger signal that the stock is already at a high and has nowhere to go but down.
You'll probably find that a combination of fundamentals and technical analysis, perhaps with the right stock trade software, gives you the best information. By regularly studying your charts you will be able to determine with sufficient accuracy if a market is nearing or has now reached a periodic high or low. Blending such observation with fundamental analysis, i.e. knowledge of market conditions, special factors that will probably impact on the price, and so on, is what successful traders do to make consistent profits.
Warren Buffet, it is said, has one of the best stock market trading systems ever devised - and the simplest. He selects a stock or commodity that is at or near a periodic low, and buys it. If it moves up he's in for substantial profits as long as he keeps hold of it for long enough. If it moves further down he simply buys some more, but twice as much. That way it only has to recover half way and he's into profit.The risk in this strategy is very limited in that the stock can never go below zero, and if the trade is of an index or a commodity then the danger of insolvency is removed as well. So all in all this is an excellent trading system, and it's certainly not done Warren Buffet any harm.
But what about those of us who don't have WB's billions to trade with? What stock market trading systems can we turn to in order to minimise risk and maximise profits?
Well, we want a system that will collect and display sufficient (but not too much) information about the stock or other security that we're trading. It has to take into account our own targets and vulnerabilities, the capital we have available and any handicaps, such as limited time availability, that we have to deal with. Having regard to these, it has to develop rules that we can easily understand and obey.
This is quite basic, yet the situation is confused because there are hundreds of systems of various kinds available for sale on the internet, all claiming to be capable of making you thousands a week in profits, and nearly all being sold by people who never actually trade on the stock market. They can therefore largely be ignored as being of no use in the real world.
The remaining systems nearly all incorporate one or both of the two main techniques that have been around for many years - fundamental analysis and technical analysis.
Many successful traders are fully committed to just one or the other, so clearly opinions vary on which one is the more reliable when making your trading decisions. But it seems most of the very successful traders use both methods.
Let's take equities as an example. It must make sense before making a trading decision to check one or two fundamental indicators that may affect the price direction of the stock. If the price has been rising steadily it may be that buyers have been active ahead of a profits announcement due in a couple of days. If the profits are high this might have already been discounted in the market, and if they are disappointing the share price will probably fall.
If you're a committed technical analyst then you would probably not take any notice of such matters, relying solely on the chart of the price history, and some chart-based indicators. Certain indicators may show a danger signal that the stock is already at a high and has nowhere to go but down.
You'll probably find that a combination of fundamentals and technical analysis, perhaps with the right stock trade software, gives you the best information. By regularly studying your charts you will be able to determine with sufficient accuracy if a market is nearing or has now reached a periodic high or low. Blending such observation with fundamental analysis, i.e. knowledge of market conditions, special factors that will probably impact on the price, and so on, is what successful traders do to make consistent profits.
Warren Buffet, it is said, has one of the best stock market trading systems ever devised - and the simplest. He selects a stock or commodity that is at or near a periodic low, and buys it. If it moves up he's in for substantial profits as long as he keeps hold of it for long enough. If it moves further down he simply buys some more, but twice as much. That way it only has to recover half way and he's into profit.The risk in this strategy is very limited in that the stock can never go below zero, and if the trade is of an index or a commodity then the danger of insolvency is removed as well. So all in all this is an excellent trading system, and it's certainly not done Warren Buffet any harm.
But what about those of us who don't have WB's billions to trade with? What stock market trading systems can we turn to in order to minimise risk and maximise profits?
Well, we want a system that will collect and display sufficient (but not too much) information about the stock or other security that we're trading. It has to take into account our own targets and vulnerabilities, the capital we have available and any handicaps, such as limited time availability, that we have to deal with. Having regard to these, it has to develop rules that we can easily understand and obey.
This is quite basic, yet the situation is confused because there are hundreds of systems of various kinds available for sale on the internet, all claiming to be capable of making you thousands a week in profits, and nearly all being sold by people who never actually trade on the stock market. They can therefore largely be ignored as being of no use in the real world.
The remaining systems nearly all incorporate one or both of the two main techniques that have been around for many years - fundamental analysis and technical analysis.
Many successful traders are fully committed to just one or the other, so clearly opinions vary on which one is the more reliable when making your trading decisions. But it seems most of the very successful traders use both methods.
Let's take equities as an example. It must make sense before making a trading decision to check one or two fundamental indicators that may affect the price direction of the stock. If the price has been rising steadily it may be that buyers have been active ahead of a profits announcement due in a couple of days. If the profits are high this might have already been discounted in the market, and if they are disappointing the share price will probably fall.
If you're a committed technical analyst then you would probably not take any notice of such matters, relying solely on the chart of the price history, and some chart-based indicators. Certain indicators may show a danger signal that the stock is already at a high and has nowhere to go but down.
You'll probably find that a combination of fundamentals and technical analysis, perhaps with the right stock trade software, gives you the best information. By regularly studying your charts you will be able to determine with sufficient accuracy if a market is nearing or has now reached a periodic high or low. Blending such observation with fundamental analysis, i.e. knowledge of market conditions, special factors that will probably impact on the price, and so on, is what successful traders do to make consistent profits.
Warren Buffet, it is said, has one of the best stock market trading systems ever devised - and the simplest. He selects a stock or commodity that is at or near a periodic low, and buys it. If it moves up he's in for substantial profits as long as he keeps hold of it for long enough. If it moves further down he simply buys some more, but twice as much. That way it only has to recover half way and he's into profit.The risk in this strategy is very limited in that the stock can never go below zero, and if the trade is of an index or a commodity then the danger of insolvency is removed as well. So all in all this is an excellent trading system, and it's certainly not done Warren Buffet any harm.
But what about those of us who don't have WB's billions to trade with? What stock market trading systems can we turn to in order to minimise risk and maximise profits?
Well, we want a system that will collect and display sufficient (but not too much) information about the stock or other security that we're trading. It has to take into account our own targets and vulnerabilities, the capital we have available and any handicaps, such as limited time availability, that we have to deal with. Having regard to these, it has to develop rules that we can easily understand and obey.
This is quite basic, yet the situation is confused because there are hundreds of systems of various kinds available for sale on the internet, all claiming to be capable of making you thousands a week in profits, and nearly all being sold by people who never actually trade on the stock market. They can therefore largely be ignored as being of no use in the real world.
The remaining systems nearly all incorporate one or both of the two main techniques that have been around for many years - fundamental analysis and technical analysis.
Many successful traders are fully committed to just one or the other, so clearly opinions vary on which one is the more reliable when making your trading decisions. But it seems most of the very successful traders use both methods.
Let's take equities as an example. It must make sense before making a trading decision to check one or two fundamental indicators that may affect the price direction of the stock. If the price has been rising steadily it may be that buyers have been active ahead of a profits announcement due in a couple of days. If the profits are high this might have already been discounted in the market, and if they are disappointing the share price will probably fall.
If you're a committed technical analyst then you would probably not take any notice of such matters, relying solely on the chart of the price history, and some chart-based indicators. Certain indicators may show a danger signal that the stock is already at a high and has nowhere to go but down.
You'll probably find that a combination of fundamentals and technical analysis, perhaps with the right stock trade software, gives you the best information. By regularly studying your charts you will be able to determine with sufficient accuracy if a market is nearing or has now reached a periodic high or low. Blending such observation with fundamental analysis, i.e. knowledge of market conditions, special factors that will probably impact on the price, and so on, is what successful traders do to make consistent profits.
Warren Buffet, it is said, has one of the best stock market trading systems ever devised - and the simplest. He selects a stock or commodity that is at or near a periodic low, and buys it. If it moves up he's in for substantial profits as long as he keeps hold of it for long enough. If it moves further down he simply buys some more, but twice as much. That way it only has to recover half way and he's into profit.The risk in this strategy is very limited in that the stock can never go below zero, and if the trade is of an index or a commodity then the danger of insolvency is removed as well. So all in all this is an excellent trading system, and it's certainly not done Warren Buffet any harm.
But what about those of us who don't have WB's billions to trade with? What stock market trading systems can we turn to in order to minimise risk and maximise profits?
Well, we want a system that will collect and display sufficient (but not too much) information about the stock or other security that we're trading. It has to take into account our own targets and vulnerabilities, the capital we have available and any handicaps, such as limited time availability, that we have to deal with. Having regard to these, it has to develop rules that we can easily understand and obey.
This is quite basic, yet the situation is confused because there are hundreds of systems of various kinds available for sale on the internet, all claiming to be capable of making you thousands a week in profits, and nearly all being sold by people who never actually trade on the stock market. They can therefore largely be ignored as being of no use in the real world.
The remaining systems nearly all incorporate one or both of the two main techniques that have been around for many years - fundamental analysis and technical analysis.
Many successful traders are fully committed to just one or the other, so clearly opinions vary on which one is the more reliable when making your trading decisions. But it seems most of the very successful traders use both methods.
Let's take equities as an example. It must make sense before making a trading decision to check one or two fundamental indicators that may affect the price direction of the stock. If the price has been rising steadily it may be that buyers have been active ahead of a profits announcement due in a couple of days. If the profits are high this might have already been discounted in the market, and if they are disappointing the share price will probably fall.
If you're a committed technical analyst then you would probably not take any notice of such matters, relying solely on the chart of the price history, and some chart-based indicators. Certain indicators may show a danger signal that the stock is already at a high and has nowhere to go but down.
You'll probably find that a combination of fundamentals and technical analysis, perhaps with the right stock trade software, gives you the best information. By regularly studying your charts you will be able to determine with sufficient accuracy if a market is nearing or has now reached a periodic high or low. Blending such observation with fundamental analysis, i.e. knowledge of market conditions, special factors that will probably impact on the price, and so on, is what successful traders do to make consistent profits.
Warren Buffet, it is said, has one of the best stock market trading systems ever devised - and the simplest. He selects a stock or commodity that is at or near a periodic low, and buys it. If it moves up he's in for substantial profits as long as he keeps hold of it for long enough. If it moves further down he simply buys some more, but twice as much. That way it only has to recover half way and he's into profit.The risk in this strategy is very limited in that the stock can never go below zero, and if the trade is of an index or a commodity then the danger of insolvency is removed as well. So all in all this is an excellent trading system, and it's certainly not done Warren Buffet any harm.
But what about those of us who don't have WB's billions to trade with? What stock market trading systems can we turn to in order to minimise risk and maximise profits?
Well, we want a system that will collect and display sufficient (but not too much) information about the stock or other security that we're trading. It has to take into account our own targets and vulnerabilities, the capital we have available and any handicaps, such as limited time availability, that we have to deal with. Having regard to these, it has to develop rules that we can easily understand and obey.
This is quite basic, yet the situation is confused because there are hundreds of systems of various kinds available for sale on the internet, all claiming to be capable of making you thousands a week in profits, and nearly all being sold by people who never actually trade on the stock market. They can therefore largely be ignored as being of no use in the real world.
The remaining systems nearly all incorporate one or both of the two main techniques that have been around for many years - fundamental analysis and technical analysis.
Many successful traders are fully committed to just one or the other, so clearly opinions vary on which one is the more reliable when making your trading decisions. But it seems most of the very successful traders use both methods.
Let's take equities as an example. It must make sense before making a trading decision to check one or two fundamental indicators that may affect the price direction of the stock. If the price has been rising steadily it may be that buyers have been active ahead of a profits announcement due in a couple of days. If the profits are high this might have already been discounted in the market, and if they are disappointing the share price will probably fall.
If you're a committed technical analyst then you would probably not take any notice of such matters, relying solely on the chart of the price history, and some chart-based indicators. Certain indicators may show a danger signal that the stock is already at a high and has nowhere to go but down.
You'll probably find that a combination of fundamentals and technical analysis, perhaps with the right stock trade software, gives you the best information. By regularly studying your charts you will be able to determine with sufficient accuracy if a market is nearing or has now reached a periodic high or low. Blending such observation with fundamental analysis, i.e. knowledge of market conditions, special factors that will probably impact on the price, and so on, is what successful traders do to make consistent profits.
Warren Buffet, it is said, has one of the best stock market trading systems ever devised - and the simplest. He selects a stock or commodity that is at or near a periodic low, and buys it. If it moves up he's in for substantial profits as long as he keeps hold of it for long enough. If it moves further down he simply buys some more, but twice as much. That way it only has to recover half way and he's into profit.The risk in this strategy is very limited in that the stock can never go below zero, and if the trade is of an index or a commodity then the danger of insolvency is removed as well. So all in all this is an excellent trading system, and it's certainly not done Warren Buffet any harm.
But what about those of us who don't have WB's billions to trade with? What stock market trading systems can we turn to in order to minimise risk and maximise profits?
Well, we want a system that will collect and display sufficient (but not too much) information about the stock or other security that we're trading. It has to take into account our own targets and vulnerabilities, the capital we have available and any handicaps, such as limited time availability, that we have to deal with. Having regard to these, it has to develop rules that we can easily understand and obey.
This is quite basic, yet the situation is confused because there are hundreds of systems of various kinds available for sale on the internet, all claiming to be capable of making you thousands a week in profits, and nearly all being sold by people who never actually trade on the stock market. They can therefore largely be ignored as being of no use in the real world.
The remaining systems nearly all incorporate one or both of the two main techniques that have been around for many years - fundamental analysis and technical analysis.
Many successful traders are fully committed to just one or the other, so clearly opinions vary on which one is the more reliable when making your trading decisions. But it seems most of the very successful traders use both methods.
Let's take equities as an example. It must make sense before making a trading decision to check one or two fundamental indicators that may affect the price direction of the stock. If the price has been rising steadily it may be that buyers have been active ahead of a profits announcement due in a couple of days. If the profits are high this might have already been discounted in the market, and if they are disappointing the share price will probably fall.
If you're a committed technical analyst then you would probably not take any notice of such matters, relying solely on the chart of the price history, and some chart-based indicators. Certain indicators may show a danger signal that the stock is already at a high and has nowhere to go but down.
You'll probably find that a combination of fundamentals and technical analysis, perhaps with the right stock trade software, gives you the best information. By regularly studying your charts you will be able to determine with sufficient accuracy if a market is nearing or has now reached a periodic high or low. Blending such observation with fundamental analysis, i.e. knowledge of market conditions, special factors that will probably impact on the price, and so on, is what successful traders do to make consistent profits.
Warren Buffet, it is said, has one of the best stock market trading systems ever devised - and the simplest. He selects a stock or commodity that is at or near a periodic low, and buys it. If it moves up he's in for substantial profits as long as he keeps hold of it for long enough. If it moves further down he simply buys some more, but twice as much. That way it only has to recover half way and he's into profit.The risk in this strategy is very limited in that the stock can never go below zero, and if the trade is of an index or a commodity then the danger of insolvency is removed as well. So all in all this is an excellent trading system, and it's certainly not done Warren Buffet any harm.
But what about those of us who don't have WB's billions to trade with? What stock market trading systems can we turn to in order to minimise risk and maximise profits?
Well, we want a system that will collect and display sufficient (but not too much) information about the stock or other security that we're trading. It has to take into account our own targets and vulnerabilities, the capital we have available and any handicaps, such as limited time availability, that we have to deal with. Having regard to these, it has to develop rules that we can easily understand and obey.
This is quite basic, yet the situation is confused because there are hundreds of systems of various kinds available for sale on the internet, all claiming to be capable of making you thousands a week in profits, and nearly all being sold by people who never actually trade on the stock market. They can therefore largely be ignored as being of no use in the real world.
The remaining systems nearly all incorporate one or both of the two main techniques that have been around for many years - fundamental analysis and technical analysis.
Many successful traders are fully committed to just one or the other, so clearly opinions vary on which one is the more reliable when making your trading decisions. But it seems most of the very successful traders use both methods.
Let's take equities as an example. It must make sense before making a trading decision to check one or two fundamental indicators that may affect the price direction of the stock. If the price has been rising steadily it may be that buyers have been active ahead of a profits announcement due in a couple of days. If the profits are high this might have already been discounted in the market, and if they are disappointing the share price will probably fall.
If you're a committed technical analyst then you would probably not take any notice of such matters, relying solely on the chart of the price history, and some chart-based indicators. Certain indicators may show a danger signal that the stock is already at a high and has nowhere to go but down.
You'll probably find that a combination of fundamentals and technical analysis, perhaps with the right stock trade software, gives you the best information. By regularly studying your charts you will be able to determine with sufficient accuracy if a market is nearing or has now reached a periodic high or low. Blending such observation with fundamental analysis, i.e. knowledge of market conditions, special factors that will probably impact on the price, and so on, is what successful traders do to make consistent profits.
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