Wealth Is Made By Focusing In Stocks

Title: 
Wealth Is Made By Focusing In Stocks

Word Count:
289

Summary:
STOP. 

STOP trying to create the perfect trading system. There isn't one. 

Phew..what a relief. Stop spending all those hours creating more and more trading rules and realize this: 

Money creation in the stock market is made from CONCENTRATION. That's right. Trading the very best stocks atthe right time with enough capital to make a big difference. 

You must go from wealth CREATION to wealth maintance in this game. Unless you plan on "investing" for the next 25+ y...


Keywords:
stocks


Article Body:
STOP. 

STOP trying to create the perfect trading system. There isn't one. 

Phew..what a relief. Stop spending all those hours creating more and more trading rules and realize this: 

Money creation in the stock market is made from CONCENTRATION. That's right. Trading the very best stocks atthe right time with enough capital to make a big difference. 

You must go from wealth CREATION to wealth maintance in this game. Unless you plan on "investing" for the next 25+ years and building wealth slowly.. this is my plan of how you can make millions in the stock market: 

In Darvas's book "How I Made $2 Million..." 

How many looked at his position sizing? In his early trades Darvas only trade 1 or 2 stocks at any one time on MARGIN! Only when he got upto over $500,000 did he start diversifying a little. Most people overlook these facts. 

MY Momentum Stock PLAN: 

CONCENTRATION BUILDS WEALTH DIVERSIFICATION MAINTAINS WEALTH 

END GOAL: 

$2 MILLION+ ACCOUNT MAKING 20-30% P.A 

Start with: 
$50,000 Trade 2 stocks with half capital in each. 

RISK Per TRADE = 5% 

When at $100,000 Trade 3 stocks with 1/3 capital in each. 

Risk Per Trade = 3% 

When at: 

$500,000 Trade 5 stocks with 1/5 capital: 

Risk Per Trade = 2% 

When at $2 Million Trade 8 stocks with 1/8 capital: 

Risk Per Trade = 1.25% 

You first have to create wealth in order to maintain it. Whilst trading only two stocks at a time may be deemed to �risky� by the �professionals� you must be very selective on the stocks you trade. Quality beats quantity. Especially when you concentrate so much. 

This is the only way a small account can break into the big time. You must not only focus your efforts in the early stages but you must also onlytrade the top 0.1% of stocks in the marketand get yourtiming SPOT ON.