How To Trade Stocks In 2010?

Today is the last day of 2009. We are about to enter another new exciting year of our lives. Standing on 2009 and looking at 2010, you need to make a few resolutions about your life. It is always good to introspect and learn from your past failures and success to make a better life in the future. If you are an investor or a trader than you need to make a resolution that you are going to make it big in 2010. Buying and hold stock investing style was buried by the stock markets in the last two years. What you need is a new resolution and a new trading plan to make it big in 2010. Do you want to make 7 figures in 2010? Nothing wrong in dreaming big even if you fail.

You should develop the trading plan based on who you are as an investor. This is an absolute must before you create your trading plan for 2010 to know what type of an investor you are. Your old trading plan may not work in 2010. What you need is a trading plan that first determines what type of an investor you are. Are you an investor? Are you are trader? Are you a long only investor? Are you a short only investor? Or are you both a long and a short investor? You need to sincerely ask these questions and determine what is the time horizon of your stock investing.

Take out a piece of paper and write your trading plan for 2010. What are your financial goals. How much you want to make in 2010. What will be your trading strategies in 2010? Write down all these things in detail and ponder over them.

Make an important resolution in the trading plan that you will become an independent trader in 2010. This means that you will make your independent judgement about what stocks to invest in. You are not going to watch CNBC or Bloomberg and buy on someone's recommendation. Well, you will hear what others say but you will make your own judgement. You will learn those chart patterns that can help you in judging what is the best time to enter the market and what is the best time to get out of the market. Your motto should be you will only trade when you are dead sure that you are about to make a winning trade. No more confused and half hearted trades. You are going to stay out of the market if you are not sure!

You need to make it clear to yourself that you are not trading the stock market, you are only trading the stocks. This means that the market sentiment is irrelevant to you. Once you have identified a stock, think what will be the best strategy. Should you go long, for how long? Should you go short and for how long? Make a trading plan that does not depend on the market direction. This trading plan should work for both the bulls and the bears.

The last and the most important resolution that you should make for 2010 is that you will never trade without first putting the stops. You will only buy at the support or withing 5-10% of the support and sell at the resistance or withing 5-10% of the resistance. You will learn those chart patterns that can tell with deadly accuracy when the market is at it's lowest and your downside risk is minimal.


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Mr. Ahmad Hassam has done Masters from Harvard. Discover the Internal Strength System that can give you 7 figures in 2010! Discover this Flexible Forex Day Trading Course that teaches trading not more than 20 minutes each day and reaching a 5 figure monthly income!