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Choosing stocks can often feel like an emotional roller coaster. Investors juggle predictions of economic trends, industry changes, and social movements while also analyzing business statistics and incorporating personal interests and passions into their selections. It can be overwhelming and exhausting. But the Stressless Trading Method offers a clear, methodical approach to stock selection, focusing on a key element that simplifies the entire process. Before diving into this key element, let’s recap how the Stressless Trading Method works. First, you set an initial purchase price, a high and a low target. For every fixed change in price, you make a transaction. For example, for every $5 change in price, you buy or sell two stocks. If the price increases by $5, you sell a predetermined number of shares. If the price decreases by $5, you buy a predetermined number of shares. We’ll delve into the mathematical formulas for determining purchase low and high price points in future posts.

Imagine you set a low of $0 and a high of $200, with an initial purchase price of $50. You buy 150 shares at $50. If the stock price hits zero, you will own 200 shares. If it reaches $200, you will have sold all your shares. Consider this: you purchased 150 shares at $50, and the share price rises uncontrollably to $200. By following the plan, you would have sold all your stocks, with an average selling price of $125.50. You don’t need to fully understand the math right now, but it’s important for clarity and transparency. Here’s a simple way to calculate the average selling price: add up all the money you will receive for selling shares as the price rises from $50 to $200. Use the formula for finding the sum of a range of numbers: take the total amount of numbers in the range, divide by two, and multiply by the sum of the start and end numbers in the range. In this case, 150 divided by two multiplied by 51 plus 200. Then, divide that sum by the number of transactions you made, which is 150. Your average selling price would be $125.50.

The key to the Stressless Trading Method is choosing volatile stocks that frequently oscillate, creating opportunities to leverage the volatility. Here are a few examples: ● TSL: Over the past five years, TSL shows a pattern of rising by 150 to 200% and dropping by 50 to 60%. ● SQL: Over the past four years, SQL fluctuates between $5 and $20, then back to $5. ● Teak: Teak rises by 150 to 250% and falls by 25 to 45% on a consistent basis.

These stocks have clear, identifiable patterns, making them excellent candidates for the Stressless Trading Method. You can also choose your own stocks and achieve similar success. The goal is to pick stocks with significant fluctuations around a stable average price.

An interesting anecdote from the inventor of the Stressless Trading Method captures the essence of this strategy. When a friend expressed frustration with market volatility, the inventor replied, "If you want to make money trading, you have to treat volatility as your girlfriend, not your wife. Be ready to dance when she wants to dance." This tongue-in-cheek advice highlights the value of embracing volatility rather than fearing it. Most stock advisors recommend avoiding volatile stocks due to their perceived risk. However, the Stressless Trading Method views volatility as an opportunity—if you follow a plan. Avoid picking stocks that are complete duds. As long as a stock shows a tendency to fluctuate, even with slow price decay, you can recover your initial investment over time by being patient and sticking to the plan.

Not confident in your ability to choose the right stocks? One simple trick is to stick to tickers you have complete faith in, particularly those based on a basket of stocks in a specific sector or industry. For instance, I have complete faith in the high-tech sector in the United States, which has been the backbone of the US economy since World War II. Although the sector has ups and downs, a ticker based on large-cap high-tech stocks is unlikely to go to zero. The Stressless Trading Method is a game-changer. It simplifies the stock selection process, leverages volatility, and provides a clear plan for buying and selling. In future posts, you’ll learn how to apply mathematical precision to set your purchase low and high price points, allowing you to build incredible wealth over time. Embrace the simplicity and effectiveness of the Stressless Trading Method and transform your investing experience.