Stock Trading – Can You Make Money Trading With Only One Stock?
Many investors spend hours and hours looking for many different companies to find quality stocks that they can add to their portfolio. However, you can save yourself a lot of time by choosing a stock (you can find the best stock) and insisting for many years and years. So is this a sound investment strategy?
I've given so much thought recently because I've been reading a few articles in the past few months about some of the so-called ISA millionaires. These people in the UK have turned their ISA into a six-figure sum. That's not what it means, because the ISA did not have that many years, and the maximum amount you can contribute each year is now £ 10,200, and that's far less than that. However, some people who have reached the six-figure milestone have not done so, for example, the FTSE 100 Index's companies, which have been listed in the FTSE 100 Index, have not done so. . They invest a large number of shareholders in only one or two stocks take off.
It is now clear that this is a high-risk strategy. I'm sure other people have tried and lost most of the ISA capital, because every success story, there are more companies that will never become profitable companies, and ultimately go bankrupt.
However, you can still earn a consistent profit by picking a stock and building an investment and trading strategy around that stock. You want to find a company that has a long track record of earnings and dividend growth and is expected to continue to grow for many years to come. If I do, I might choose one as Tesco, as they are the largest supermarket group in the UK, and they are constantly expanding here in the UK and overseas.
Then you just have to think about when you will buy these stocks. Ideally, you should fall in any market because in the long run, stock prices should continue to rise if revenue continues to grow. Therefore, when the RSI and Stochastic are below 20 or 30, you can buy more shares (or open positions) and hold them forever, or sell when the indicators are overbought.
In addition, if you want to further improve your profits, you should reinvest any dividend income into the company (ideally When the stock is oversold). This will have a huge impact on your capital growth.
So the key is that you can make currency trading with only one stock. You can convert cash into smaller speculative stocks, or you can take a more sensible and safer strategy by selecting a big market leading company and trading, or accumulating more stocks, each oversold.