Is there a stock trading system that works? Is there a simple system that works consistently, day after day, without fail, and provides steady gains year after year?

The short answer is an emphatic YES! In fact, when you do a quick search, you’ll find that there are a number of systematic approaches that can provide consistent results on a regular basis…or at least that’s what the advertisements say.

But the longer answer is – for the vast majority – unfortunately… NO!

Why? What is the problem and why isn’t there a simple, consistent stock trading system that will beat the market day after day, month after month, year after year? What is the factor that turns gains into losses and success into failure?

The biggest factor in the failure of stock trading systems…is the individual who is implementing the system. Why is this? What happens?

Dalbar is a well-recognized firm that since 1994 has studied investor behavior and the results individual investors produce. Each year, they look into the outcome that “do-it-yourself” (DIY) investors produce versus the results achieved by investors that use the advice of investment advisors, brokers, and other financial professionals. The report they produce, titled the “Quantitative Analysis of Investor Behavior (“QAIB”), has consistently shown that the DIY’ers consistently UNDERPERFORM the investors that have used so-called ‘professional’ advisors.

Why is this? It’s because brokers have a consistent approach with their clients. It’s called “BUY AND HOLD.” When you call and say “I’m scared, I want to get out of the market!” they will tell you: “Don’t sell, we’re long-term investors…you need to buy-and-hold…that’s how you’ll make money.”

So, rather than being guided by your emotions, there is at least SOME type of system in place. You have a consistent approach, guided by your broker, which keeps you on-track.

Is this the best approach? No, it’s not… not by a long-shot. A minimal amount of investigation will show you that there are MUCH more effective systems out there that will beat the pants off of “BUY AND HOLD” with way less risk and way less emotional turmoil.

The main point is that some system – ANY system – will beat no system at all. And most “DIY” investors tend to rely on their emotions to guide their decisions rather than following a predetermined, systematic approach to their investments.

Any stock trading system that allows emotions to enter the picture as opposed to a non-emotional, pre-determined set of parameters is doomed to failure.

What are the options? How can you increase your wealth without having to rely on a “professional” advisor with a vested interest that most likely conflicts with your goals? What is the stock trading system that will work best for you?

Remember these 4 points for maximum success:

1. Read more about stock market training to see what your options are for gaining control through your own knowledge and expertise. There are loads of free or very inexpensive tools out there to help you gain an edge in your personal investing.

2. Any stock trading system must incorporate stock market analysis in order to make the decisions on what to buy…and what NOT to buy. The good news is that access to stock information is everywhere, and it’s free. A simple system will use just a few parameters to help you make your decisions.

3. Internet stock trading has essentially replaced the old system of “I’ve got to call my broker” in order to buy stocks. Stock trading is cheaper, easier, simpler, and faster when you use your computer instead of your telephone to buy stocks.

4. Last, but definitely not least, your own stock market strategy will ultimately determine your success. Remember, ANY system will beat no system at all. But you’ll need to follow a stock market strategy that has been proven successful as well as being a good fit for you to give yourself the best chance for consistent profits.

So what approach should you use? Each person will be different based on their tolerance for risk, their patience, the amount of time they have available, and their short and long-term goals. Do you want to ‘day trade’ or would you rather check on your investments once a week or once a month? Take some time and determine for yourself which stock trading system is the best for you. You won’t be sorry, and you could soon find yourself in the ranks of other successful investors, making money no matter which way the market is headed.

Source by Tim Tenza