Picking High % Return Trading Stock

Stock market operators you should know by now that the key to having success in the market is focusing on buying quality companies for a sustained period of time.

Because owning quality growing companies is the most time tested way to build lasting wealth in the capitalist system.

But to really add fuel to fire of growth you have to, in my opinion, have a seperate account where you trade stocks and options for captial generation and compounding growth.

If 2 people have $20k to invest and the 1st investor puts all $20k into Pepsi, then the 2nd investor puts $10k into Pepsi and trades the other $10k @ a 100% return per year then the 2nd investor has $10k per year to add into the original prinple annually and will always be the largest share holder in the long run.

That is why I say long term stock market success is a triangle for a firm foundation.

Just as that poorly drawn triangle demonstrates this business is best build with three legs.

Today’s Goal: For You to know what stocks to trade next week and the rest of the year!

If you want to be a successful trader first thing you must come to terms with is that you are going to lose money. The goal is to lose less money by trading less than most but optimizing your gains with stocks that move!

What is a stock that moves. Well a stock that has daily to weekly movement of $5-$30.That is a start. You can make money with stocks that take weeks to move $20 up and down, but it is furstrating.

When you throw out those stocks you can focus on the ones that really make money and that cuts down on having to pay attention to all those 1000s on the open market.

We are taught that stock trading is about hot tips and trends but really it starts with cutting down all those stocks out in the world to a handful. Say, 5 to start with and build up to 20 at the most. That is what real profitable traders do.

That sounds like a terrible way to make money, but in fact this is the simple way to earn tons. If your stocks move well then they should probably set up 12 trades a year and if you have 10 of them then that is 120 trades a year. Which is more than enough to grow your account by 20% a month. If you do that then your money will grow large in no time!

You will want to have a nice diversification of stocks as well so do not trade all banking stocks or tech stocks.

Make sure that these stocks have options that move well too. These options should scare you with the movement but also be affortable to your current money in the market.

1. Currently I am in trades on SPY $538 Puts that should last well into next week

2. I am also in a position on GS $490 post July earnings Puts that could last longer than next week

3. My Watchlist this week:

4. URI for a post earnings decline

5. CMI for a post earnings move

6. BLK - for a post earnings move

I want to personallly welcome everyone that is new since last week’s edition.

Welcome to the Investor Family! Grow to become the Accredited Investor you can be!

I plan to release my trading plan for August this week as a kind of between issue treat. I want you guys to see how much planning goes into the trade way before you pull the trigger on the entry.

Next issue I plan to discuss the one key that most people do not use that is the single biggest cause for so many trades not working out to profitibility.

We should also discuss in detail at some point my stock market success flywheel.

Your Friend in Success,

Robert M Morris

Please note this is not financial advice as I am not a financial advisor and honestly not sure I want to be.

Give this information to your own financial advisor before acting on it in your own voliation.