Learn How to Make Money by Stock Channeling

by : Daniel Millions

If you are serious about succeeding at online stock trading and by succeeding I mean making tons and tons of money then this may be the most important article you read today.

Here's why: there's a little-known but extremely accurate stock market investment technique that actually eliminates the guesswork and uncertainty that accompanies online stock trading by telling exact stocks to buy, at what price you should buy them, and the exact price you should sell these stocks to ensure that you make a profit off of each and every trade that you make.

What's this technique called? It's called stock channeling and it may quite simply be one of the best ways to be truly successful at online stock trading.

Here's how stock channeling works: When a stock repeatedly moves up and down in waves between two parallel lines it is said to be a channeling stock. The upper trend line, or high price point, acts as resistance, and the lower trend line, or low price point, acts as support. The area between the two trend lines is the channel.

So all an investor has to do is buy a channeling stock when its price is near the bottom of the channel and sell it when its price rises to near the top of the channel. And since channeling stocks repeat their movements, investors can buy and sell and profit from a stock over and over again.

So why is stock channeling such a reliable investment technique? Because it relies on the market's natural tendency to trend. You see, when a stock starts to go up in price, some investors will always say that the stock price has gotten too high and they will sell their shares and take their profits. At the same time, other investors will also be inclined to say a stock is too high and they will decide to short the stock.

Then when a stock starts to go down, some investors will decide to start adding to their position and if it really goes down in price either the same people who were averaging down will load up on it or value investors will step in and say the stock is cheap, it's time to buy. Also at this time, those who shorted the stock may cover their short and take their profits.

All of these types of investor behaviors often work together to keep a stock channeling back and forth in price. However, channels don't last forever. Eventually a channel will be broken and probably a new one will be formed.

But until that happens, a channel can last for years and provide an investor with tremendous profits in the meantime. The key is finding stocks that are channeling so that you can invest in them and profit from them over and over again. Here is an example trade that shows the profit potential of investing in channeling stocks:

Let's say that an investor knows the stock of ABC Company is currently channeling so he buys 100 shares at the low price of $15 and then sells it at the high price of $18. Then this investor waits for the price to go back down to $15, where he buys it again and then he sells it again at $18. He does this two more times and in no time he's made a nice little profit of $1,200!

I'm sure I don't have to tell you that greed and fear are two of an investor's worst enemies and to be truly successful in the stock market you need to be able to keep your emotions out of it. Stock Channeling helps investors profit from the stock market by giving them strict buy and sell signals to follow for specific stocks that are channeling.

Stock channeling is by far one of the best ways to consistently profit from the stock market regardless of what kind of condition the market is in. It is the only investment strategy in existence that provides a clear and concise road map to exact stocks that you can profit from over and over again.