The 6 Percent Solution

Below is the current strategy I use when investing my money in the stock market. I may make slight changes and adjustments to this strategy as time goes by, but the general concept will always stay the same.

If you make 6% 12 times you double your money.
If you double your money 8 times it becomes $1.2 million.
[Starting with only $5k]

Portfolio Rules

  • Always know where my next 6% goal is.

  • Sell all positions every time goal is reached.

  • No more than 4 stocks at a time.

Stock Rules

  • Plan the trade, trade the plan (know exactly where I am going to buy and where I am going to sell before pulling the trigger)

  • Never let a gain turn into a loss. Use stops.

  • Never lose more than 2%.

  • Always sell once up 5-10%.

Stock Picking Rules

  • Avoid stocks with known upcoming catalysts.

  • Pick stocks based on trends and technicals.

  • Look for stocks with potential for 5-10% gains.

  • Never pick stocks under $20.

  • Never pick stocks with average volume under 500,000.

Other Rules

  • Never hold a stock through earnings.

This strategy forces me to acknowledge some very important concepts that I believe make me a better investor.

  1. You will get sidetracked without a solid plan.

  2. Investing is all about discipline. Make a plan and stick to it.

  3. If you want to set your goals high, you need to take lots of baby steps to reach them.

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