Stock Trading Strategies

Understanding the best stock trading strategies is the key to investing. You need to pick the right one for the type of market environment you are in. I wrote the best-selling book Strategic Stock Trading that goes through my Two Fold Formula for picking out stocks.

I spend hours a week looking through the stock market to find the best stocks to buy.

I also blog about the market and you can find my most recent posts about the strategies that are working the best in the market right now if you scroll down a little. I am now going on my third decade of investing and trading in the financial markets and have been there and done that so to speak. I even ran a hedge fund for three years.

Here are some of the most common questions I am asked:

Frequented Asked Questions:

How Do I Buy Stocks Using a Broker?

How Many Stocks Should I Own?

How Can I Control My Risk Using Stop Loss Orders?

Can A Stock Picking Service Really Work For Me?

Should I Buy Penny Stocks on the OTC Bulletin Board?

For more get my Stock Trading Book

Here are my most recent posts I have done applying trading strategies to the current market environment.

Current Global Market Valuations Show Where to Invest and Where to Stay Away - Mike Swanson (10/25/12)

I've been following the Mebane Faber blog now for the past few months. He has written a book that is well worth your time reading called the Ivy Portfolio about how to use funds to construct a portfolio that can beat the market.

Today he posted this data on his site showing the cyclically adjusted P/E's of various countries at the end of the 3rd quarter:

Some Questions Answered - Mike Swanson (10/17/12)

I did this video after the close yesterday.

Last night I went through the market and found several stocks that look like compelling buys. I wrote about them in a special PDF Power Investors only report. If you are a member just go to the right sidebar and type the username and password to login to read it. If you aren't a member join the group now by going here.

Right Now I'm Waiting - Mike Swanson (08/30/12)

I bought various positions in the past few weeks. I want to add to them. I want to buy more mining stocks and more stocks and funds linked to Europe. But I'm waiting for a pullback first. If I owned nothing I'd be buying now, but I don't. I got some positions. I want a pullback to see where I am at in them before I buy more. I want to average in at some lower prices where we are now - or some more time.

Where is the Best Place to Invest in the World Right Now? - Mike Swanson (08/28/12)

Where is the best place to invest in the world right now?

That's a question you never hear anyone really asking on CNBC. Mostly it's all about trades and the hyped up news of the hour. It's about "fast money" and the few times a year the question is asked of a guest on CNBC the answer is almost always the United States - and the reason given is always the same - this is the greatest country in the world with the best free market system on the planet so its too dangerous to try to do anything else. Nonsense.

Podcast: Dave Skarica Explains Why He Is Now Closely Watching the CCI - Mike Swanson (08/14/12)

I just did this podcast with Dave Skarica of In it we talked about the current stock market action and what appears to be a coming bull market for Europe, emerging markets, and commodities. He also talked about the CCI index and why is now watching it like a hawk.

Stock Market Gap Down and a Question Answered - Mike Swanson (07/23/12)

I just did this video answering an email question someone sent me. On Friday I did a video saying that I was planning on taking some big investment positions in the stock market and then Sunday I wrote a report saying I thought the stock market was going to drop again into the Fall. This person found this to be confusing. And if he is confused I'm sure there are others confused too.

Podcast: David Morgan Talks About the Current Correction in Mining Stocks and The Opportunities to Invest Now - Mike Swanson (04/05/12)

I just did a podcast with David Morgan of

David Morgan probably knows more than anyone on the planet about silver stocks so I was real excited to talk with him today about what is happening in the silver world in regards to the current mining stock correction. David talked about his view of the stocks now and his methods of investing in them.

Podcast: How to Pick an Online Stock Broker, with Blain Reinkensmeyer - Mike Swanson (02/23/12)

I just did an interview with Blain Reinkensmeyer of and

Blain graded the most popular online stock brokers by opening up accounts with them and testing them. He then put together this wonderful review of brokers, with his results and summaries of the different options that they offer people.

A No Lose Trade? Why You Should Consider Shorting Japanese Bonds - Mike Swanson (02/14/12)

I just did this video with Dave Skarica of at his place in Eleuthera, Bahamas. I just spent the past few days there visiting with him, having a good time, and of course talking about the financial markets and what is going on. I see him once or twice a year and every time I do we can't help but talk about the markets.

In this video Dave talked about one trade he is recommending right now to his subscribers - shorting Japanese bonds.

Podcast: Doc Severson of on How to Trade Options the Right Way - Mike Swanson (01/30/12)

I just did this podcast with Doc Severson of

Doc is an expert at options trading and we talked about how to trade options the right way. Most people just try to use options as a substitute for buying stocks and lose money because they don't factor in volatility and time decay.

Podcast: Markus Heitkoetter of on His Daytrading Tactics, Indicators, and Range Base Trading Strategies - Mike Swanson (01/26/12)

I just did this podcast with Markus Heitkoetter of In it we talked about daytrading, technical indicators, and Range Base trading strategies.

Markus is a top daytrader and teaches people his trading tactics on his website. He trades stocks, commodities, and forex.

Podcast: Victor Riesco on the Current Stock Market Rally and His Recent Trades - Mike Swanson (01/20/12)

I just did a podcast with Victor Riesco of

For this video Victor sent me this pdf file containing some charts we talked about.

In the interview we talked about some recent trades Victor completed and his thoughts on the stock market now.

To look at his charts click here.

Podcast: Mike "Tiny" Saul Talks About How Stocks Respond to Earnings and His Take on the Stock Market - Mike Swanson (01/18/12)

I just did a podcast with Mike "Tiny" Saul of

In it we talked about how stocks react to earnings news and the current action in the stock market.

Use The Dogs of the Dow Stock Picking Strategy in 2012 to Beat the Stock Market - Howard B Arnn (01/03/12)

The Dogs of the Dow is an investment strategy that focuses on picking stable, high dividend stocks to maximize investment returns. According to the strategy, the investor buys ten Dow Jones Industrial Average (DJIA) stocks with the highest dividend yields at the start of the year. The stock portfolio is then adjusted accordingly at the start of every year.

Know and Trade the January Effect on the Stock Market - Matt Rego (1/1/2012)

As an investor, you should know seasonal trends to better protect yourself from any unwanted risk exposure. Knowing that stocks act a certain way during the year is important because you may want to have more defensive protection from an unwanted drop. For example, October and September are, historically, the worst months for stocks. It doesn’t mean they are the worst months every single year, the seasonal trend is that these months could provide turbulence if you are not careful. Putting that aside, what is the January Effect? How does it affect the entire year?