Like pretty much everything in life, the stock market is just another object of unnecessary complication by anyone and everyone involved in it.
And when we start experiencing big changes and significant volatility, it becomes even more paramount to simplify your own process if you want to keep making profit after profit.
Here’s the easiest and most powerful way to simplify your stock investing strategy right now…
I’m not sure if it’s human nature, hubris, or something else that always seems to win out over common sense, but it certainly rears its ugly head on Wall Street.
For whatever reason, everyone is always looking for a new way to invest, a new trading tool to use, a unique strategy, and so on.
Sure, some circumstances require a different approach in order to gain success. I’ll happily admit that.
I myself like to mix things up a bit based on market conditions, the security I’m investing in, and how I perceive the risk…
- Sometimes I’ll try to buy at the lowest possible entry point to ensure bigger upside potential,
- Sometimes I’ll try to buy on a breakout to confirm the strength or weakness of the security,
- Sometimes I’ll focus more on a certain pattern…
And yes, having an array of approaches can be very helpful. But when things get shaky, it’s time to simplify…
Simplifying does several things to enhance your trading and investing strategy.
1. It removes emotion,
2. It removes distractions and gives you more focus, and
3. It takes away your ability to “get too cute”.
That’s why when volatility comes along, I only trade 2 things: the weakest of the weak, and the strongest of the strong.
That means I’m looking at securities that fall even when the market is up, and the securities that climb even when the market is down.
Simple, right?
That simple strategy has kept me out of trouble and put me in position to profit time and time again, and now I’m passing it along to you. Don’t try to get too clever by attempting to pick out the one stock that you think is overvalued or is at a perceived bottom.
This is my mantra during lots of volatility: Keep it simple, stupid.
