Everyone is looking for the big money making secrete that only “professionals” know about. They want to be given the exact set of rules to trade in order to make a huge gain in the stock market. However most if not all traders can do a lot better by creating their own trading system based on some of the stock market basics.
There are a wide variety of stock market traders out there. Each trader created a strategy based on their own needs and risk tolerance. For example one trader may have a system that can lose 4 times in a row, but makes it all up on the fifth trade.
You may not be able to sit around and keep placing losing trade after losing trade in order to hit just a few big jackpots throughout the year. In addition to that one trader may see things just a little differently then you. For instance you may see a stock breaking out of resistance and heading higher and another person may see it bouncing off of resistance and heading lower. This small difference in perspective could mean a huge difference in the return that each trader will recieve throught the year, even if they are trading with the same rules.
In addition, you may have a different tolarance for risk then another investor. Someone else may like the highs and lows that come with trading stock options. You on the other hand may be more suited to simply buying stocks.
There is another reason to create your own system. It can help you understand what it takes to trade successfully. If you just take someone else’s strategy and start trading it you will not have the instincts they have. Things like when a stock simply doesn’t look like it is a good trade and when to just exit out of it can be very important.
In the end it is just better to learn stock trading yourself instead of trying to copy someone else who has already made it.