And the #1 Trading Style Is…
…the style that’s right for you!
No one style is better than the other. They’re just different from each other.
And that’s fine.
So the number one trading style is the one that’s right for you, that picks the kinds of stocks you want to get into.
Because if you find yourself getting into stocks that are not in alignment with who you are or want to be as a trader, you’ll find yourself dropping that strategy the moment the market hits a rough patch. Or talking yourself out of winning trades altogether, because you’re uncomfortable being in stocks that don’t fit your style.
The Strategies Work Best When You Use Them
The best trading strategy in the world won’t make you any money if you don’t use it.
And the more confident you are in your strategy the more apt you will be to use it.
To build confidence in your trading, remember to first:
1) Identify what kind of trader you are or want to become. This will help you find the style(s) that are right for you. And don’t worry about fitting perfectly into one style or another. Many people will be a combination of several styles rolled into one.
2) Once you understand the different styles and where you fit in, you can then concentrate on what kinds of items will help you pick the stocks that have those characteristics so you’ll always get into the right ones.
3) Don’t give up. As mentioned above, the most successful trading strategies work best when you use them. Once you’ve identified your style and the method to pick those stocks, make sure to follow a proven profitable trading strategy to increase your odds of success. This will give you the confidence to stick with it and to maximize your returns.
You can do it.
Where to Start
You may want to look into our Research Wizard program. It can help you discover what kind of trader you are and what strategies work the best with your style. Pick and choose from the winning strategies that come with it (including a strategy that has averaged gains of +67.4% per year). Or create your own and backtest them to see how they would have performed in various market conditions.
You can do all this with our Zacks Research Wizard. I invite you to give it a try for 2 weeks free.
Thanks and good trading.
Vice President, Zacks Investment Research
Zacks VP Kevin Matras is our stock screening and backtesting expert. He also personally developed many of the built-in market-beating strategies that come with the Research Wizard.