Judgmental Biases:

Some people get the idea that they would be better off on their own. Therefore, they become fascinated by stock entry signals that they perceive to be synonymous with a complete trading system. You get a sense of control with entry signals because the point at which you choose to enter the market is the point at which the market is doing just what you want it to do. As a result, you feel like you have some control, not just over your entry, but over the market. Unfortunately, once you are in a position in the stock market, the market is going to do whatever it wants to do, you no longer have any control over anything except your exits.

Most people believe that they have a stocks trading system if they have some sort of entry point that makes them money. There are as many as 10 mechanisms to professional trading system and the entry signal is probably the least important. However, most people just want to know about entry. Look at our stock picking strategy as an example of number of factors that must be checked before even you think of buying a stock. stock pick strategy