Mats Bengtsson

How to win money on the stock market

Mats Bengtsson mib over the years

There are three main roads to make more money than others on stocks

I have read a lot of papers and articles and discussions on how to win money on the stock market. I have subscribed many years to Technical analysis of stocks and commodities. I have read only a number of books, which is typical me. I prefer input from many, rather than a lot of input from some specially selected. My plans are to continue finding inoformation from all sources, but so far there is more than enough quality information floating through in the newsgroups and mailing lists and papers not to focus too mych on books..

My conclusion is that there are three main roads to make more money than others in the stock market (excluding the otherwise working road of getting stock, stock options, or stock information from your own company). All of my believes center around Technical Analysis:

  • Finding analytical ideas not yet found by very many (finding the picks before others do, maybe even trading small margins)
  • Utilizing the old basic ideas used and believed in by a great many others (finding the picks all others will rush into as well)
  • Having a lot of money, spreading them in many portions and focusing hard on money management (works assuming that the stock market long term will continue to deliver more wins than losses, and the money management is cutting losses short and securing the wins)

The first two routes are most likely to beat the fund Managers.

There are many ways to lose money on the stock market

Many people use trading system ideas that does not return a statistical profit. Even more use "unstructured second-guessing" of the trading ideas/systems they do have. Some people have favorite stocks where their trust for past performance limits them from utilizing the full scale of the available market. All ways are good ways to lose money, and might have a common reason: You never tested the system you are planning to use, so you are not confident enough when the trades start turning against you. The trades will start turning against you, so confidence is very important and so is being sure that the system at least statistically will deliver a profit. Without that confidence, your second-guessing is likely to get you out of winning trades to early and out of losing trades too late. Remember the saying: Let your profits run and cut your losses short. Reversing that and instead cutting your profits short and letting your losses run is unfortunate but common.

Always test your trading ideas

Either test your trading ideas yourself, find a friend who can do it for you, buy a program that is good enough to test it for you, or take help from someone with the knowledge, like me.

To get them tested by me, I need your trading idea either in Easy language or clearly described in another way so I can enter it into my test suite myself. I will take 500 SEK for a test done in the same way as I test my own systems (I will take a lot less if I already have tested a system for you and you are doing only minor changes). I will do this only as long as few enough people want this help, I have got a full time job and do this just for the sake of interest. If it takes too much time, then I might have to say no. You can reach me at:


Never trade stocks without having tested your system. In fact, most trading systems are not profitable if tested over many stocks. Full story...

Do not invest in heating equipment without having compared the alternatives, not only to current situation, but also to each other. Full story...

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