Financial Success

Stock Trading Tips

By: John Piper

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John Piper is a professional trader He is giving free views and advice on key issues, markets and how to profit from them.

"My aim is simple: to help you make more money trading markets! That includes index futures, options, stocks, commodities, in fact any trading vehicle."



Two Key Criteria of a Successful Trading System

This tip is one of the essentials. For a trading system to be successful it has to meet two key criteria.

  1. It must isolate low risk trading opportunities

  2. The trades must have good profit potential.

Many successful systems do not see successful trades of as much as 50%, thus it is critical that the ratio of profit to loss exceeds 2.5, preferably 3. Quite simply unless that is the case the profits will not cover your losses plus commissions ands other costs. Before you put your hard earned cash down, paper trade the system to ensure it meets these parameters. 


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