Finding a Stock to Trade

Finding a Stock to Trade
Ed Seykota: Everybody Gets What They Want

Trading is not the same as investing. The objective of trading is to take advantage of fluctuations in price; drawdowns are expected and some systematic traders will even tolerate big ones. The object of investing is to compound capital efficiently; drawdowns negatively effect on the compound annual growth rate.

When it comes to trading, just go to where the action is. Our method streamlines the process of identifying stocks suitable for the trader's time horizon, skill and bank roll. But first, we must understand the risks.