A Trading Strategy Based on Social Traditions

Many novice traders and even some intermediate ones tend to place value on the wrong aspects of what trading is all about, with something like a 20+ hour video course about trading strategies and techniques mistakenly associated with the kind of value that will have them justifying having paid thousands of dollars for it. Sure, you can indeed invest a little bit of money in acquiring some of that knowledge about the field which essentially just makes you aware of the basics, but in-depth techniques and strategies aren’t developed by attending some course or even by going through intensive training material.

In-depth strategies that actually work are developed by immersing yourself in the game and taking positions – by trading. Do you know how a trading strategy somebody offers to share with you is genuine and legit? Basically they’re willing to share it with you for free, simply because as I keep getting back to throughout the posts I publish here about trading strategy, in order for it to work you have to personalize it and make it your own. You have to take ownership of it and implement it driven by what will emerge to be your very own, unique trading style.

There is just no way you could copy each and every action of a top-trader to the tee, even if they laid out some kind of terrace which shows exactly how they make their trading decisions. This is because timing plays an important role in everything to do with trading, which brings into focus the trading strategy of the day – trading according to social traditions.

This perhaps technically falls under the broader category of trend trading, i.e. trading according to market trends, but you’re not going to take a technical approach to it. Instead, what you do is take inventory of what you spend your money on with regards to the social traditions you honor.

You then pick stocks to take positions on, whether you’re buying them outright as an investor or if you’re buying their CFDs, based on their seasonal popularity. For instance, just by looking at the web traffic that flows to an online retailer of save the date postcards as well as something like the most frequently bought such postcards during a specific period of time, you can deduce that a seasonal tradition is being honored by the mass market, which means there is plenty of opportunity around the industries which supply these particular services industries.

I mean there probably aren’t too many listed companies which offer services such as catering, but that’s where you’d need to look, particularly if there might be some penny stocks to choose from as those represent a huge up-side potential. So you’d assume the role of someone who analyses the business which forms around the honoring of popular social traditions and then take up trading positions accordingly.

As much as I hate to admit it, something like the fact that there is a divorce rate of 50% should give you an idea of what I’m talking about, which would perhaps have you picking out stocks associated with legal firms that specialize in family law or even specifically in divorce law.