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The Single Biggest Obstacle to Trading Success

Why do some people succeed spectacularly in the market while others fail?

The market is the same for one person as it is the next.

So why the dramatic difference in performance?

Could it be that self-doubt and a lack of confidence are holding you back?

As many know all too well, there's an emotional component to trading and investing.

In fact, for some, their emotions are the biggest obstacle to trading success.


Missed Opportunities

How many times have you found a stock you like, did your research on it, and were ready to pull the trigger, only to talk yourself out of it at the last minute? And then days or weeks later, you come to find that stock has shot up, and you're now kicking yourself for not being in it.

After having that happen to you one too many times, you vow to not let that happen again on your next stock. You still have the same unease as before, but you decide to get in anyway. Only this time, the stock immediately starts going down, and you instantly regret your decision.

Of course, with that recent loss fresh in your mind, you decide to be more diligent. But you wind up talking yourself out of your next trade, only to find that stock has gone up just as you had expected, and you're once again, not in it.

This cycle can repeat itself far too often, creating scores of missed opportunities, making people hate the market.

So where does that come from?

That self-doubt stems from a lack of confidence in your strategy.


Trading With Confidence

Success in trading comes down to two things:

1) Knowing what works, and
2) Doing what works

If your stock picking strategy has proven to pick winners -- in good markets, bad markets, and everything in between, then you know your strategy works. And you'd have number 1 covered.

Then, when it comes time to placing your trade, you won't struggle with the decision of 'should I or shouldn't I', because you know your strategy has put the odds of success in your favor.

It's the knowing, that creates the confidence in doing.

If you know your strategy works, you would not hesitate to place your trade. The unease would disappear. The self-doubt would be replaced with excitement. And your confidence would soar.

You'd now have number 2 covered.

As the saying goes, "a good strategy works best when you use it". And the more you use it, the more confident you'll become, making you that much more likely to keep using it. And that is the recipe for success.

MORE . . .


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Big Stock Move Monday, May 16 at 10:05 am ET

On Monday morning, Zacks' emotion-free, computer-driven "Black Box" strategy will release its next batch of stocks and trigger a wave of buying among a select group of investors.

Over a 10-year testing period, which included just about every market condition, it crushed the S&P, generating a total return of 327%.

In recent weeks, individual Black Box stocks have made gains of +19.04%, +20.94%, even +35.23%, just to name a few.

Now you can be first in line to see Monday’s picks >>

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Time-Tested Methods

Nowadays, the most successful traders use computerized models to know what strategies work.

Traders create algorithms (strategies) using various criteria to select stocks. Through backtesting, they are able to see how their strategies would have performed in the past so they'll have a better idea as to what their probability of success will be now and in the future.

Past performance is no guarantee of future results. But what else do you have to go by?

Think about it. If you saw that a stock picking strategy did nothing but lose money, year after year, stock after stock, over and over again, there's no way you'd want to use that strategy to pick stocks with. Why? Because it has proven to pick bad stocks.

On the other hand, if you had a strategy that did great year after year, trade after trade, over and over again, you'd of course want to use that strategy to pick stocks with. Why? Because it has proven to pick winning stocks. And while it could start picking losers all of a sudden (now that you're using it, right?), it may also continue to pick winning stocks, just like it had been doing over and over before.

Of course, a winning strategy won't preclude you from ever having another losing trade. On the contrary, even the best strategies 'only' have win ratios of 60%, 70% or even 80% -- not 100%.

But if your strategy picks winners far more often than losers, you can feel confident that the next stock it picks will have a high probability of making money. And you'll have the confidence to take it.


He Who Hesitates Is Lost

Once you know all the ins and outs of a strategy, you never have to second guess yourself.

And why would you? If you have a proven strategy that has outperformed in both bull markets, bear markets, and everything in between, you can feel confident that the best research has already been done to put those stocks on your buy list (or sell list) in the first place.

Because the 50-100 hours of testing that went into creating that strategy, is unlikely to be outdone by reading one extra news story, or looking at one more chart, or stressing over something in the market.

And that's the point. Imagine devoting 100 hours of your best thinking to EVERY stock you thought about buying. You'd feel pretty confident about that pick. And that's what a thoroughly tested strategy can provide -- the best time-tested analysis applied to every stock that comes through, each and every time.

And it also strips away the human bias that hurts so many traders out there. No more stressful emotions and no more indecisive 'hemming and hawing'.

Peace of mind. And a more profitable portfolio.


Emotion-Free Trading Today

We've created such an approach with our new strategy that incorporates Zacks Rank #1s, the top Zacks Ranked Industries, and a special combination of various Growth, Value, and Momentum style inputs that have shown extreme profit potential.

We call this secret formulation the Zacks Black Box Trader.

Best of all, there is no human bias to this computer driven and operated strategy. Just a straightforward, quantitative model that has tested off-the-charts with a total return of 327% during our 10-year testing period..

Black Box applies the best time-tested analysis to every stock that comes through. And it automatically does this each and every time so you don't have to. Every Monday, you'll be signaled which stocks to buy (and which to sell) with the highest probability of success. Remarkably, it only takes a total of 5-10 minutes trading each week to enjoy the gains.

If you believe like I do that emotions can get in the way of your success as a trader, I know you'll enjoy approaching the market in this entirely different and unbiased way.

Or, if you're just looking for a systematic way to pick the stocks that are likely to outperform every week -- with no guesswork -- I believe Black Box is the strategy for you.

Please note that the Black Box is not only one of our most exclusive strategies, but it is also generating an extraordinary level of interest among Zacks members. Its latest stocks will be released this Monday, May 16 at 10:05 am ET. Be among the first to see them . . .

Get details on our Black Box Trader right now >>

Thanks and good trading,

Kevin

Zacks VP Kevin Matras is our stock screening expert. He developed many of Zacks' most powerful market-beating strategies and created the exclusive Black Box Trader.

 


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