How to Develop a Profitable Trade System

You need a trading system (same as strategy) to make money for trading for a few stocks or hundreds of stocks a year. It will give you rules to enter a trade and to close a trade. In addition, it gives you suggestions to monitor your trades and how to protect your portfolio.

As of this writing (August, 2020), the market has been making records many times. Any trading system betting the market to go up should make you good money. We are in a bull market! From my market evaluation, the trend is up but not the fundamentals. When the trend is reversed and it will, we could be in a bear market. That's why I have a full book (included in this book) on how to time the market. It works in the last two market crashes, and hopefully it will predict the next one. No one can predict the exact time.

A trading system for a bull market is different from one in the bear market (using contra ETFs, shorting stocks and trading put options). A sideways market needs another trading system. This book includes many strategies to deal with different markets.

Your trading system can be tailored to your requirements and objectives. Starters should stick to one strategy, and hopefully select the strategy that is appropriate in the current market conditions. I categorize the strategies of this book into the following three:

• Short-term trades (less than a month). It includes Technical Analysis, Momentum Investing, Insider Trading and a few other strategies.
• Swing trades (from one to 6 months and typically one month): Sector Rotation.
• Long-term trades (typically a year). Many strategies from conservative strategies to riskier strategies.