A simple stock trading system that's free

I am often asked by relatively inexperienced tradersImmediately put a limit order on it to sell 90% of the
whether there is a simple method that they can usestock at a price that will recover ALL your costs
that is consistently profitable. The answer is yes, and(including dealing costs). Say for the sake of
better still, it works in both a day trading timeframeargument that you spent $10,000 on the stock (at
and a swing trading timeframe. Heck, it even works if$10 per share, obviously), and $25 on execution fees,
you want to 'buy and hold' your stocks! Basically, thisyou would be looking to sell 900 shares at about
system allows you to build up chunks of equity in$11.14 or better. This would recover your initial outlay
your favorite companies at effectively zero cost.of $10,025 and leave you holding 100 shares of your
Sounds too good to be true, doesn't it? Surely itfavorite company, completely free!
must be a complicated stock trading system, withAh, you say. Excellent. But hang on! What happens if
high drawdowns and large risk? Nope. So why do Iit doesn't hit a ten percent rise anytime soon? Or
offer it here for free? Because the Trader'sworse, starts to fall? Welcome to the world of stock
Collective asked me, simple as that. Right, here wetrading, where losses are also possible! The key to
go.successful trading is to control any losses you incur.
Choose your target security or stock, and wait for itThis means firstly setting a rigorous stop loss that will
to start moving upwards strongly. This could betrigger automatically, and secondly trying to ensure
because the whole market is in an upswing, orthat your entry criteria give a better than average
perhaps your chosen stock is forging ahead on goodchance the stock will move the right way. Let's look
news. Buy a round lot of the stock, say 1,000 shares.at that second point first.