Simplifying a trading strategy, Senters said, is especially useful when starting out.
Austin, TX (PRWEB) October 03, 2012
Absolute Wealth, the leaders in useful investment and financial information, has published an article from contributor and expert investor Hubert Senters. In it, Senters addresses the age-old question of “Is stock trading supposed to be this hard?”
“When it is said that stock market trading doesn't have to be difficult, that doesn't mean that it will be overly easy either,” Senters wrote in the article. “Most traders have a proclivity to over complicate the act of trading. The truth is that trading doesn't have to be more difficult than you choose for it to be.”
Simplifying a trading strategy, Senters said, is especially useful when starting out. Limiting the number of stocks followed is a great method of simplification that allows for expertise of a few instead of minimal knowledge on several.
“Another way to simplify stock market trading is to absolutely, positively, without exception avoid any news related trading,” said Senters in the article. No one can read the minds of millions of traders, so news announcements will never seem to produce the results that they should.
The final and perhaps most effective practice shared by Senters is the idea of using larger time frames. Weekly and monthly charts can give traders a good feel for the overall action of a particular stock.
“For example,” wrote Senters, “if you notice that IBM is in an uptrend over the last two years, you will simply look for buying opportunities and ignore all selling signals. This keeps the wind at your back, tends to allow for a little bit more flexibility on your entries, and assures you that there are plenty of other traders willing to push prices in your direction.”
Hubert Senters is a professional day trader and successful entrepreneur. He had an unusual start to his professional investment career, and the story of his introduction is included as part of the “Trash Can Trader” program.
Senters launched TradetheMarkets.com with fellow Absolute Wealth contributor John Carter, and has garnered a loyal trading community following with his keen sense of the trading markets, his frank teaching style, and his willingness to help others learn from him.
Absolute Wealth is an expert team of real investors and advisors devoted to identifying winning strategies for exceptional returns. Members subscribe to the company’s Independent Wealth Alliance for professional investment analysis and recommendations on the latest market trends and progressions. For more information and subscription instructions, visit AbsoluteWealth.com.