Simple Stock Trading Formulas

How to Make Money Trading Stocks

by Billy Williams

Number of pages: 268

Publisher: Blue Zen Publishing

BBB Library: Economics and Investment

ISBN: 978-0615988320

About the Author

Billy Williams: is a 25-year veteran of the stock and option markets, as well a frequent contributor to Futures Magazine, Advantage,, and other top financial publications.


Editorial Review

As a frequent contributor to Futures Magazine,, Advantage and other top financial publications, I know from experience that stock trading offers enormous profit potential for traders if you have the right tools for success. But, each year, millions of aspiring stock traders still come to the stock market but still fail to achieve any meaningful success despite being armed with the latest indicators or some expensive stock trading system. There are two main reasons: One, they lack a proper foundation in the study of price action and, two, they lack a method to show them where to find trading opportunities and when to pull the trigger. Price action is the language of the market that is spoken to you each day through price charts and, if you understand what its trying to tell you, then you'll never lack for low-risk trades again. But, you also have to have a stock trading method that provides a set of rules to show you when a trade is setting up with the least amount of risk combined with the highest probability of success. Without understanding either of these concepts, you're chances are slim that you'll succeed. But, if you have the patience, drive, and discipline to apply a few simple rules along with sound fundamental and technical analysis, then the odds are on your side that you'll succeed. In Simple Stock Trading Formulas, you'll read about the role of both the stock exchanges and stocks themselves so that you understand how the game is played. Next, you'll learn how to look under the hood to find fundamentally sound stocks that have the highest chance of becoming a high-performer, avoiding the stagnant, lifeless stocks that are going nowhere. Then, you'll get to the meat of the book and get a in-depth breakdown on technical tools, price patterns, how to spot compelling technical criteria, mindset, and a set of rules-based stock trading strategies that work in any market condition.

Book Reviews

This book made it so easy to understand how the stock market works. It provides easy to understand formulas, and explicit instruction that even a total neophyte like myself could figure out.

In Simple Stock Trading Formulas, you'll read about the role of both the stock exchanges and stocks themselves so that you understand how the game is played.

Books on Related Topics

Wisdom to Share

Extensive research on mutual fund returns has confirmed that professional investors fail to beat a passive index of all stocks over time:

Some of the biggest news events that drive the prices of individual stocks are earnings announcements. In the US, companies announce their financial results every three months

Being a successful stock trader is as much about having a good strategy as it is about doing great research or having great insight. People should understand that they are not Wall Street analysts.

one approach is to screen for companies that have lower P/E, P/B, and FCF yields than the overall stock market, an ROE that is consistently above 15%, and a performance over the past year that is at or above the level of the overall market

Three of the most important are the growth rate of earnings, the capital efficiency of the business (a measure of how much money they need to invest in order to get an additional $1 in earnings), and the balance sheet of the company.