The history books will certainly look back at 2020 as one of the most unique years for stocks — and for good reason. Some of the more notable factors that ushered in a period of extreme volatility in such a short period include a brief but tense standoff in Middle East tensions, the novel coronavirus being declared a global pandemic, and oil dipping into negative territory for the first time ever.
After a brutal start to the trading year, stocks were in full rebound mode by mid-2020 and many stocks of all shapes and sizes soared to new all-time highs. But as the easy money has mostly already been made, traders need to invest in their research capabilities to gain a much-needed edge.
And how can anyone gain an edge against the competition? Perhaps the most important step is to figure out a game plan.
Identify your strategy
There are tens of thousands of stocks that traders can pick from. The stocks range in size from a fraction of one penny to multi-thousand dollar stocks. The market capitalization of the companies similarly ranges from millions to trillions.
For some, trading stocks that few have ever heard of is a winning strategy. Others stick to household names that dominate our day-to-day lives. The only consistent reality between the two extremes is they know not to deviate from their area of specialty.
Fortunately, it is easier than ever for traders to identify what stocks fit within their desired criteria.
One example of a modern application built for new and experienced traders alike is Stockstotrade (STT), a real-time stock scanner with tons of built-in features to take your trading to the next level.
As the name of the platform implies, STT scans tens of thousands of stocks to help a trader identify only the stocks they want to trade based on their criteria. Want to trade just penny stocks? STT has you covered. Want to trade mega-cap stocks only? No problem.
STT is much more than just an advanced stock screener. Some of the more notable features that traders love about the STT platform include:
- News filter: STT helps traders understand why a stock is moving with a built-in news aggregator. Traders have access to view media headlines, earnings reports, SEC filings, and more without leaving the platform.
- Watchlists: After running the powerful scanner and identifying a handful of stocks to trade, users can create one or many watchlists to follow their selected stocks in real-time.
- Charts: A stock scanner by itself is useless to many traders unless it is accompanied by high-end charting abilities. STT lets users create charts based on their desired timeframes and their preferred favorite technical analysis tools.
- Broker Integration: STT’s platform can integrate with several reputable stockbrokers and trading platforms for added ease of convenience.
Learn more about the platform in this Stockstotrade review.
Adapt your strategy
Every successful trader knows that their trading strategy is a ticking time bomb waiting to explode. Coupled with disciplined risk management principles, a strategy can work for months or years before one day it doesn’t.
Yes, it can be that extreme. So now what?
Once a winning strategy turns to a losing strategy, it is time to take a break from the live account and return to the drawing board. Perhaps a strategy needs a simple or minor adjustment, or it requires a complete overhaul.
Do you want to waste real money trying to figure out which one it is? Of course not. A paper trading account is invaluable as it lets traders dry-run their strategy with “paper” money. The vast majority of stockbrokers have some form of free account that lets traders practice.
Paying For Help
It is likely that even the most advanced and successful traders at some point paid for educational courses or other advice from professionals. Traders can find courses on technical analysis, chart reading, analyzing news, and much more. The internet is a vast resource where traders can find classes to improve their strategy, no matter what it may be.
Advanced traders also recognize the value of complementary research, such as STT’s Oracle Scanner. Oracle boasts artificial intelligence technologies that leverage big data to deliver market movers directly to your email every morning.
Experienced and professional traders are likely to recoup the cost of the value-added service in just one trade. Many stocks were flying under the radar in 2020 that provide monster returns, such as e-commerce company Overstock.com (OSTK) that gained 900% in 2020.
Bottom Line: Focus And Execute
Traders can fine-tune their strategy and pay for all of the services available to make them a better trader. But at the end of the day, all the knowledge in the world won’t guarantee a successful trading career.
Traders that lack focus and the ability to execute on their strategy are doomed to fail from day one.