Stock selection and trading plan

[SamLau]

Hi,

I've been thinking does it really matter what company you buy at this point in time. It seems price changes in general seem to have come correlation. If the ASX200 goes up, most stocks will rise that day. I read that somewhere in "The art of trading" by christopher tate. I also read you need a trading plan to be successful. How does one start designing that plan?

Thanks in advance

 

[beamstas]

Yes of course it matters.
I have 8 long positions open and have lost money in the last 3 days

 

[Mr J]

It seems price changes in general seem to have come correlation.

Heavily correlation. Stocks are correlated with industry, national economy, regional economy, and global economy. It's all connected.

If the ASX200 goes up, most stocks will rise that day

Likely, since the ASX200 is made up of those stocks.

 

[Aussiest]

I also read you need a trading plan to be successful. How does one start designing that plan?

Well, that's the question. I am reading Smart Trading Plans by Justine Pollard. She offers a no nonsense approach to share trading and even details her best and worst trades.

A trading plan won't guarantee you of success, it can take years to build. And, the only way to build it is to study, paper trade and work out what works best for you.

 

[tech/a]

Yes of course it matters.
I have 8 long positions open and have lost money in the last 3 days

Why?

 

[Julia]

Why?

I was rather wondering the same thing?

 

[beamstas]

I guess i had the wrong ones
I'm not worried, you shouldn't be too

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