The fundamental problem in the current capitalist system is that poor people tend to lend their capital to rich people, thereby limiting their profit to fixed interests; while rich people pocket unlimited profit by owning stocks. Since the rich cannot consume the large profit they gained, they tend to over invest, leading to overproduction. On the other hand, the limited profit poor people took home is unable to drive up their spending apetite, and the imbalance between the over production and lack of consumption will eventually lead to a recession. The problem is further exaggerated by the myriads of financial derivatives available in the market. I believe the only way to mitigate the problem is to encourage people to invest in stocks and mutual funds, and totally ban derivatives.

Although recession is inevitable in the current economics setting, the good news for traders is whenever there's crisis, there are opportunities. Since I started to manage my accounts myself again after the 2008 crash, I've achieved 70.2% return in 2009 and up to 11/30 in 2010 I've achieved 70.9% (update: 87% as of 12/15 and growing, more performance data here ). I now believe my trading strategy is mature and would like to share it free here so more people can benefit from it and be encouraged to own stocks!

Here's how it works:

• Only aim for 1-3% profit per trade. There are heaps of stocks out there that swing more than 3% a day, by aiming at a small profit per trade, you also limit your risk. With cash on hand, there're endless opportunities to profit. The key here is to maintain a high capital turn over rate, and it's true for any type of business to be successful. As Einstein pointed out, compounding is "the greatest mathematical discovery of all time". By earning just 1% per week, your yearly compounding rate of return will be 67.8%, that's nearly 16% more than let the money sitting there for a year at 1% per week profit, assuming you can find such high rate.
• Know when to cut your loss. Allowing the loss widen to unbearable amount is THE most common mistake of investors, I've been there, done that and lost all my initial $50k capital, so try to duplicate only my successes and not the mistakes.
• Keep the portforlio size to 3-5 stocks at any given time. Although "never put all eggs in one basket" is always the golden rule in investing, overdiversification is unnecessary. Unless you have over $1 million, a few stocks at a time is diversified enough.
• Trade only stocks with positive earnings, and DON'T trade derivatives. There are enough profitable stocks that swing more than 3% per day, so don't risk your hard earned money on unpredictable stocks and derivatives.
• Minimize tax. As you can see in the Tax Planning section, tax is the major enemy in investing. We want to serve our citizenship responsibilities, but we also hate double taxation (the underlying company of the stocks already paid tax, and we also trade with after tax dollars). Therefore, it's perfectly reasonable to utilize all possible vehicles to legally minimize tax. I've listed a few ways to achieve tax minimization in the Tax Planning section, and I'm sure there are more possibilities. If you ever come across any new ideas, I urge you to post it in the comments section.
• Find the cheapest broker. There are plenty of free information on the web, all we need the broker for is to execute our orders, so why let them cut into more of our profit than they deserve? I currently use Just2trade ($2.50 per trade, search for their link on the right side panel), but am thinking of switching to Zecco (10 free trades per month if over $25000 in account).

If you strictly follow my advice above, I'm sure you can replicate the sort of returns I've achieved if your portfolio is less than $1 million. If you have more than $1 million, just invest in a mutual fund and free yourself from the hassle of constantly following the market! I've perfected the above strategy through trial and error at my own cost, and it's provided here free because I want to help more people establish the confidence in stock trading. If you find the above information helpful, please circulate it around to as many people as you can.

Since there are plenty of stocks on the market fulfilling the above selection criteria, I won't provide stock pick advise here. I think anyone with above average IQ probably can be more successful at picking stocks than I do, just devote your time researching the market, and over time you will become more skillful. However, in case you are still curious of what stocks I will choose, I will provide a service for $1 a week to inform you of my trade once they are executed. I won't normally catch the lowerst price buying nor the highest price selling, therefore if you want to follow me you should have plenty of time. After subscribing to the service, you will also be able to pull out all my trading history since 2011.