1)You better have an edge and you better be sure of it.
2)You better make sure you can manage your money properly
3)You better be prepared to dedicate a lot of time towards mastering your craft.
Let's talk about edges. One such edge is knowing a stocks PRICE relative to historical earnings. You want to see the stocks earnings outgrowing the price. You want to see a stock oversold AND undervalued OR in a strong uptrend in a strong sector which is an uptrend in a strong industry in an uptend when all in that sector are consolidating and ready to break out.
You can look at when a stock is undervalued, and oversold, but that's only one of the steps you then need to see the technical pattern confirm.
Longer term, you can look for a rotation into sectors.
Identifying rotations into individual sectors requires knowledge of chart patterns and such. But a knowledge of of the cycles and where you are can help you stay ahead of it and keep looking for a bias in the direction that his historically favored. Another identification is of individual industries. Particularly those leading out of a brief pullback or correction showing strong gains. You can just find a rotation and ride the trend.
Another such edge is knowing the funds the institutions are accumulating. Another is knowing how the price reacts to volume. Another is understanding volume profile and market sentiment and psychology. Another is understanding the seasonal, production, economic and weather cycles and how they effect different assets.
There are all sorts of edge which we can cover going forward.
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