By: http://www.MomentumStockPick.com

In the stock market it’s not impossible to watch a stock rise up more than 100% in less than one hour on a good momentum day. The stock market news constantly reports of momentum stocks that are breaking out & achieving tremendous gains in a matter of hours. And even when you can see traders that make $3000 on a single trade, it is also not unusual to watch beginner traders lose their shirts because of a series of unwise decisions

The problem is that if you don’t know what stocks to look for and how to properly approach them you could end up wasting cash instead of making your profits grow. You can’t just trade stocks like if you where gambling on a casino.

That’s why the most important aspect of stock trading is the knowledge FILTER you employ to make your buy and sell decisions.

There are many “fantastic” stock systems outhere, but you need to test them in order to discover which ones help you the most. That’s part of your homework as a stock trader. Test, test and test again.

Bogus stock trading software programs and complicated day trading systems that rely on a “boat load” of technical analysis indicators can confuse you and make you slow, and being slow when day trading stocks can be as dangerous as not knowing what to do in the first place.

The worst thing that can happen to a beginner stock trader is to get information overload. It’s better to go step by step, and test a practical stock trading strategy that can show you how to focus on simple ways to make money while picking SOLID hot stock trading opportunities once at a time.

In the end, stock trading is all about buying and selling according to your especific knowledge FILTER. Once you master and follow your proven filter parameters like a clock, you can expect to start making serious amounts of cash on a consistent basis.



Source by Michael Hudson