I’ve been a successful stock trader for over a decade now and thanks to the Internet my reputation has spread. I have a free email investment letter with over 50,000 subscribers in it and get questions from them all of the time.

Probably the most common question I get is what is the best strategy for trading on the stock market?

Well any strategy has got to incorporate some risk management principles and a real plan when it comes to making trading decisions.

Most people don’t do this though.

They just turn on the TV and buy when some hot news comes out or read a story in a magazine and get in what looks like a hot stock.

But when you make money like this it is just look and odds are you are going to end up losing money. Even if your stock goes up you won’t know what to do with it.

So first of all you need a good strategy when it comes to picking out stocks and making trades. Personally I’ve looked over decades of market data to figure out what chart patterns appear the most consistently before a stock goes up and then looked at the fundamentals that these stocks seem to have the most in common.

I call this combination the Two Fold Formula. I look for stocks that have both a low valuation and high earnings growth. Most growth investors ignore valuation and just look for price, but I’ve found that when you usually find your best winners when you look at both.
One of my favorite indicators to do this is the PEG ratio. Unlike the P/E ratio, which just looks at one years worth of earnings the PEG ratio takes the price of a stock and compares it to its projected earning growth for the next five years.

So by using the PEG ratio you can make buy decisions based upon the price you are paying for earnings growth.

This can give you a great list of the 50 hottest stocks to keep an eye on.

After that l look for a specific chart pattern and technical condition that I’ve also found to be common to the biggest winners.

To me this is the best strategy for making money in the stock market and I spell it all out for you free in my Two Fold Formula guide. You can get it when you join my free email list.

I believe in providing maximum value for people on my list. This is not a list of pitches and hype, but real information that will make you money in the stock market.

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