Do you know what it takes to make each stock trade profitable? Trading in the stock market isn’t rocket science, it is just a matter of understanding the market and their charts. In order to make a profit on stocks the first thing you need to know is that it all starts with the buy-in price.

Stock trading is something that many people fear and the simple reason is because stocks are risky. The one thing you need to know is that anything dealing with money is risky. For instance your job, if you work for yourself then it is risky and if your work for somebody else then it is risky too. There is never anywhere you can make money without the risk, but there are ways to make sure each trade you do remains profitable.

In order to make each trade you do profitable you need to follow a few steps. The steps are; buy 3 times, never trade the news, and always back up your trades.

Buy 3 times – Buying 3 times just means that whatever amount you want in each stock you will divide by 3 and then buy equal shares of that stock over the next 3 days. You do this so you can average into the stock and to make sure if it dips you will have ground to stand on. Another reason you want to buy 3 times is to make sure that you don’t buy when the price is high, this is normally what happens when you buy something that is in the news.

Never trade the news – Just like I said, never trade the news. You never want to trade a stock that is in the news because there will always be people that are worried about the stock dropping or others who think it will skyrocket and because of this they tend to over buy/sell and it will make the price fluctuate more than it should. So just remember to never trade the news or else could risk losing your money.

Always back up your trades – Something most people don’t do is make a counter trade with each trade you do. The importance of the counter trade is just as important as the trade itself. How you make this work is you save up enough money that if the stock drops you can buy in at the low and adjust your total investment. It is always important to have a back up so never buy more than you can afford.

Now that you have these 3 tips to make each trade profitable you need to make sure you have a strategy that you are trading on. If you trade and you don’t know why you are then you will just lose money. Something that many people do is trade the trends which is a great way to make money. If you are new try looking for daily trends that happen without failure. These are the stocks you want to trade daily for steady income and then find others that you can trade for long term growth and profits.

Trading stocks isn’t for the unorganized, you need to have a system that is organized and tested in order to make a decent profit. The last thing I want to leave you with is that a single stock strategy doesn’t always work, you will need to monitor it to ensure that it stays profitable for the long haul.

My feeling is that the SP-500 has not topped yet.  I believe this quick 16 point Zig-Zag move down to 1262 the past two days off the 1278 high is a minute degree wave (4).   It also alternates with the wave (2) flat at 1173 in late November.    Ideally the wave (4) correction should meet a minimum 23% retrace of wave (3) or 24 points.   Thus, I have alternate count that shows a potential double ZZ with one more test of the 1257 pivot tomorrow.  However, the 1257 pivot has held as support on three separate tests already and based on the strength of the Nasdaq and Russel-2000 today, minute (4) should be over and wave (5) is underway with today being the wave ii-(5) low of 1262.18.  Wave iii-(5) should target 1284/1288 and  I have the final wave (5) target of 1289 to 1291 that could come quickly in the next two days or drag into OPEX week.  I believe it will likely drag on into OPEX and frustrate traders who want to get short.

Bottom today, ready for a move up to 1300

The count is looking very good.  Move up today as wave iii-(3) of 5-[1]-P3.   I’m looking for the 1220 level to be challenged later today for wave v-(3).   Then things will settle down, next week and a final jump higher in wave (5) going into a another bullish OPEX week.  Target is 1232 to 1251. Happy Trading