My current trading rules.

To be a successful trader you must have a trading plan with rules that you adhere to. Rules that let your winners run and cuts your losers short. I have many rules I adhere to with most of them being etched in stone but some evolve as market conditions change. I cannot share all of my rules here but I can highlight those that are most important to me.

The absolute most important rule is to have plan and trade the plan. Do not deviate from the plan you have set whether it be for a particular stock or the market in general. When I develop my plan for entering positions I not only consider the stock but overall market conditions as well.

When looking for stocks to buy trend is very important to me. Most of you have probably heard that a body in motion will stay in motion unless acted upon by an outside force. The same rule applies to the trend of a stock. A stock in a downtrend, making lower highs and lower lows, will continue in that direction unless something changes for the better with the company. Conversely a stock that is trending upward will tend to continue moving up unless something negative happens with the company. I stay away from stocks in a downtrend unless something changes and an uptrend begins.

I always know where I will exit a position once I enter. I check the key levels of support and resistance of each trade I am considering. If support is too far down and I would not be comfortable with a loss at that level I move on to other ideas. I like to make sure risk is minimal and that the reward is worth the risk.

Some of my others rules include not chasing huge moves up and I don’t like to catch falling knives. I am never in a hurry to trade and never feel like I am missing out on something. The market and the stocks in it are never going away so there will always be opportunities to make money.

Why I chose to make this site?

When I began trading stocks the biggest thing that I found troublesome was trying to find out what stocks were good to buy and then at what point to buy them.  I would scour the Internet finance pages for the biggest gainers of the day thinking that if they were going up one day they should the next day.  I would search for articles on what other people thought were good stocks to trade.  I ended up losing some money and sometimes got lucky enough to make some. 

I then came across two things that completely changed my outlook on trading stocks. One was technical analysis and the other was a forum site (stockstobuy.org ) where I was able to bounce ideas off other traders and also find out what they were thinking.  Combining these two things helped me tremendously.  I was able to get different ideas and then apply my technical analysis to these ideas to form my trading plan.

This site was created for the beginner and novice trader who want to learn technical analysis and develop their own trading plan and for those who do not have the time or resources to do their own technical analysis. We also cater to the experienced trader who is looking for an edge or some new ideas on stocks or trading strategies.  

At LearnStocks 101 we go by the old saying that if you give a man fish he will eat for a day but if you teach him to fish he will eat for the rest of his life.   You can let us do the work for you while you take your time figuring things out using our extensiveTrading Handbook.