EnhancedStocks Trading Systems

A trading strategy, or plan of action, is necessary for stock trading. Your strategy must include processes for buying and selling, for reducing risk, and for maximizing profits. A clearly defined strategy, based on research, calculations, and backtesting, allows you to be a trading winner, not a "bagholder" - a trader caught in a losing trade, holding the winning trader's bag.

"One who knows when he can fight, and when he cannot fight, will be victorious." - Sun Tzu, the Art of War

"One who is prepared and waits for the unprepared will be victorious." - Sun Tzu, the Art of War

• Be up to date on news and research
• Find stocks that fit our buy criteria
• Reduce possible risk
• Adapt to any market conditions
• Make Profit

"Don't get set into one form, adapt it and build your own, and let it grow, be like water. Empty your mind, be formless. Shapeless, like water. If you put water into a cup, it becomes the cup. You put water into a bottle and it becomes the bottle. You put it in a teapot it becomes the teapot. Now, water can flow or it can crash. Be water my friend. Adapt!" - Bruce Lee, on martial arts styles (or systems) and strategy

As the market changes, our trading strategies must also change and adapt to new market conditions. Bruce Lee's quote is valid not only for martial artists, but also for stock traders. Our trading strategy must be like water - able to flow with the market, adapting to any market condition.

We cannot rely on a single technical analysis indicator or chart pattern for every trade. We must know when to change our trading strategy, or style.

• Screen all stocks for price and volume we prefer
• Run technical analysis and fundamental analysis on screened stocks to reduce the list
• Run Enhanced Analysis to futher narrow down the list of potential buys, and produce a Watch List
• Run Enhanced Trading Systems to monitor stock prices, company news and market news, and trading signals to alert us when the system generates buy signals, sell signals, or hold signals

"Using no way as way, having, no limitation as limitation" - Bruce Lee

• Momentum - a driving force behind rapid stock price growth
• Volume analysis - analytics of trading volume
• Moving Averages: Exponential Moving Average (EMA), Simple Moving Average (SMA)
• Moving Average Convergence Divergence (MACD)
• Average Directional Index (ADX)
• Directional Movement Index (DMI)
• Money flow - Determine if money is flowing in or out of a stock