Thomsett: Beat the Odds With Indicators

If only a truly winning formula could be discovered to guarantee we could all win in the stock market. If only!

This is wishful thinking, of course. With a "magic formula," we could all get rich. This realization prompted me to write Winning with Stocks, a book intended to guide readers through the difficult process of picking stocks with the simple application of a few basic, well-picked indicators.

The truth is, there are no easy ways for winning with stocks. But if you are willing to do a little digging and to consistently apply a very short list of sound indicators, you can beat the odds. You won't get rich overnight, but you can develop a smart system to improve over the averages. Everyone has probably heard the expression, "If wishes were horses, beggars would ride." This tells the whole story in the stock market. Truthfully, it is lazy to fantasize about easy, sure ways to get rich by knowing which stocks to buy and when, not to mention properly timing the sale to maximize returns. So for those who dream about easy riches, the stock market really isn't the place to look.

All investors have their own short list of indicators worth using. If you believe in your indicators and apply them consistently, you can abandon those idle fantasies of easy riches and confront the reality: It's hard work, but it pays off. By analyzing stocks with an open mind, getting away from the tendency to go back to old favorites time and again (even when your indicators no longer point to them), and making sure you stay true to your own short list of tests, you will beat the odds. ...