‘Stockradar’s key message that reverberates throughout our commentary is educating members on how important it is to have a systematic and disciplined process for buying stocks and selling stocks.’

If we play the odds of taking our trade plan signals from a defined data universe we will gain access to strong  trends. We then run with the trends and manage out the weak.

Define your data universe and limit your holdings, because you can’t take every signal because sometimes there is just too many.

There must be controls in place and our high conviction smaller portfolios (5 to 10 stocks) generate the best results. Under our portfolio process one condition is when a portfolio is full of 5 or10 stocks one must fall out before we can add a new one. This puts you in control of the composition of the portfolio and encourages focus.

Whatever happens with the ‘big’ index, the ASX/200, is irrelevant to us, it is simply not a source of valid information that effects our decision-making process. There are many stocks that diverge with the of the ASX/200. There are few factual guides we use and many we don’t use to achieve our returns, and the fact is you can’t let them all matter, no matter how ‘good’ they are. Best to focus on a few basic and valid tools for your decision making.

The first question we ask is, is the stock price going up or down?

Price. The movement, direction and power of price is the barometer we pay attention to and believe in. Not for all but we are all different human beings with different taints, biases and opinions. Not that any of these matter because they don’t, these are the things we are trying to avoid when we are trading for a living.

We need to divorce our minds from the incessant noise and lay a groundwork of best practice facts to follow. The fact is if we buy a stock, and the price goes up we can profit, and the reverse is true. But in this horse race that never ends we can be winners one day and losers the next. It is a challenging game that requires complete focus discipline and a process that is reliable and allows your equity to grow. Often the tools that matter come in the simplest from. See Stockradar Strategy

Our Stock of the Month last week GMG, yes, it’s up again this month, we believe in the power of price and the messages it sends because we know certain trends just extend, and often extend further. These decision-making tools are not the same for everyone. We all use different techniques and time frames. Most of which are valid. The key difference between success and failure will be in the disciplined implementation of a strategy. Just as no two people are alike nor are the trading results. Trading is a fascinating game, a test of egos and a test of trading skills that need to be honed relentlessly.

A prospective member asked me this week that as a sole trader whether I had a succession plan. No, I don’t just a son with a great mind and some small interest in the stock market. It may come to naught and that is his choice. And a daughter with little to no interest. That may develop but I am not hopeful! I could bring in a partner, but I have learnt I prefer to work alone. We all do our own thing. I explained to the prospective member that the main point being to be a success on the stock market it’s not a matter of following Stockradar or anyone for that matter, it is a matter of learning two important skills that anyone can learn.

Stockradar’s key message that reverberates throughout our commentary is trying to educate members on how important it is to have a systematic and disciplined process for buying stocks and selling stocks. That’s the simple message no matter how you engage with the market.

Know why you buy, and you’ll know what to buy, and know why you sell, and you’ll know what to sell. It’s that simple really.

Open the door of possibility