Is trading difficult? It is as easy as 1-2-3!

I have often been asked how do I trade.  Here are the tools or that I currently use:

1) Technical Analysis (TA).  I use classical TA methods such as chart patterns, trend lines, support and resistance lines, and momentum and divergence indicators such as RSI, MACD, Stochastics.  These are applied to both indices as well as stocks.
2) Fundamental Analysis (FA).  Stock valuation, EPS growth, dividend safety, and company debt are my cornerstones of company analysis.  Combining TA and FA together gives me the edge over my competitors
3) Economic Analysis.   I read economic reports rather than come up with my own derivations.  However, know that the key to interpret economic reports is to know that these reports are about 6 months late.  The stock market is about 6 months ahead of the economy.  After reading any economic report, project the conclusion to 6 months in future to check if the conclusion still stands.
4) Strict Money Management.  Mechanical cut loss and profit taking strategy with conservative risk management.  This is key to consistency in results.
5) Fund management using Relative Strength. I use a proprietary relative strength indicator to sort the thousands of stocks in existence.  My belief is that trading a basket of specially chosen stocks give me an edge compared with trading an index or single stocks.
6) Event Driven trades.  These are opportunistic trades taking advantage of company events and world events.


Wow, what a mouthful!  Actually, here what you really you need to know is this:
The essence of making money in the market is buying low and selling high.  There are 3 steps:
1) When to trade/invest
2) What to trade/invest
3) When to get out
It is as easy as 1-2-3.
This is my trading plan.