How do you trade?

I get this question several times.  How do you trade?  How does it work?  It is very simple.  No science to it.  It is just a simple way like buying a car or a house.  When you want to buy a house or car you buy for the lowest price possible.  You buy at the lowest price so you can use the whatever other money left to buy other things.  The same goes with buying stocks.  You buy low or cheap.  Moreover, when you buy a house, you hope that the price of the house will go up so you can make equity (extra cash) if you sell the house later as the house appreciated in price.  Unfortunately, this does not work for cars most of the time, as they depreciate in value.  But, my whole point is: when you buy stocks, you want to buy them low, until they reach a higher price and then you sell them.  This is how traders play/invest to take profits in Wall Street.

Now, what do you use trade?  You use broker accounts.  All they are doing is helping you be in the middle of Wall Street and you.  Of course, for a small commission.

Is there an edge or a way to know when to buy or sell?  Yes.  It's not 100% but you can stay on the 60 to 80% if you learn how to do it right.  It is said that if you want to be a good trader/investor, you need to win 6 to 8 times out of 10 times.  The other 2 to 4 times are losses.  Now, these losses have to be good losses.  I mean, that if you start seeing a loss on your buy, you get out if your loss hits your stop loss (read Richard Wycoff for more info).

When i make my decisions to buy and sell, i use Elliot Wave theories to guide me through the stages of the markets.  I read volumes to see how much traffic of purchases are trading.  I check Europe and Asia periodically as they can affect the US markets and viceversa.   Fibonacci retracements are great guides too as they can help estimate the course of a trend together with RSI (Relative Strength) and MACD.

Anyway, you can keep going and talking about this stuff.  In regards to my trades, i sold all my BOIL shares for a nice profit to buy me coffee for 6 months.  The next day, it went up to 8.5% and i could have double my wins.  Today is up a little.  Oh well.  You can never win all.

I'm on UGL (Double Bull Gold ETF) as i'm speculating for Gold to go up.  Also, I bought some Double and Triple Bear ETF against the US markets.  I'm hoping for them to decline and crash.  But, it's a tough call as the Long Term trend is up (Bullish).


Laters


My trading strategy and gains:

401k = 20.4% up YTD (0% invested - waiting for drop to past).  Projection by end of year is 24%
Brokerage = 15.3% up YTD (10% invested on S&P double and triple short ETFs and Gold double long ETF) Projection by end of year is 23%