Many trading stock newsletters draw clients in with promises of huge returns. There is a rule taught in Economics 101 courses around the world — There is no such thing as a free lunch. Huge rewards require huge risk. The best stock trading strategies balance risk with potential reward. It is unfortunate, but the fact is, if you take too much risk, over time you will lose all your money. We believe SRS offers the best trading stock newsletter strategy by helping our clients reduce risk and build long-lasting wealth — the kind they can keep and the kind that changes their lives. We do this by using prudent stock trading strategies that focus on leading companies with strong growth potential.

Stock Trading Strategy

It doesn’t take a great deal of experience and expertise to find a stock that has just moved up 10, 20 or more percent in a day. Many trading stock newsletters do a quick 5-minute scan of the markets and send newsletter subscribers an alert when a stock has just made a big move. These kinds of stock trades can sometimes lead to even more quick gains. Chances are though, they leave subscribers holding the bag as smart money takes profit.

We work hard to ensure our clients are never exposed to this kind of risk. We typically don’t trade cheap penny stocks with no future, but rather focus on strong companies that are leading the market that are in an uptrend and moving up out of sound buying-bases.

Trade in direction of trend

Buy from sound bases

Buy strength, sell weakness

Stock Pick Strategy:

We believe the best way to ensure our stock trades are successful is to focus on market leadership. Rather than scan the market for stocks on the move, we examine sectors that are exhibiting leadership. We then drill down and find those stocks that are leading their sectors. Before we recommend a stock we ensure it has strong earnings, increasing institutional ownership, strong earnings projections, and most importantly, a good story. If a stock doesn’t have a good reason why it is set to increase market share in its sector moving forward, we have to wonder if smart money won’t be looking to unload shares when they see strength.

Focus on leadership
Increasing fund ownership
Increasing EPS
Relative Strength

Risk Management Strategy:

Our clients are probably sick of hearing it, but we keep on hammering on the premise that if you focus on managing risk, profits take care of themselves. One or two big losses can wipe out hard-earned gains that took months to achieve. We have developed the SRS Ratchet trading system designed to force our client’s portfolios to grow just like a ratchet keeps a mechanism always moving forward, never slipping back. Each trade we take must have at least a 10 percent growth potential or we won’t take it. Moreover, we want to keep losses below 2 percent if things go wrong. In fact, we have averaged this very amount consistantly for over seven years now.

Position sizing
Stop loss placement
SRS 10/2 Ratchet System

SRS Trading Stock Market Newsletters Service

We spend hours each day researching the markets and reviewing the performances of sectors and sector-leading stocks. Clients receive a newsletter in their email daily in addition to access to the client member area of our site. Newsletters contain a daily market analysis, stock recommendations and more. A free two-week trial subscription is available.

Daily market analysis
Stock trading recommendations
Detailed entry, target, and stop loss prices
Detailed stock trade description (technical and fundamental)
Detailed guidance for open positions

Author's Bio: 

SRS is a one-stop solution provider that helps traders and investors maximize their returns from the markets with the help of a daily stock trading and trading stock newsletter.