Stock trading is a very wonderful and interesting game. Winning secrets behind stock trading are perspective, discipline, and self-control of emotions. There are thousands of stocks available in the market. The news about all these stocks available through TV, Radio, and other media. All these news force investors to take emotional decisions. Chasing the stock is not good because sometimes you fail to buy at the correct point. TV news always displays the details of major stocks. Some news attracts you and you take certain decision to buy it. But what happened at that level is? The entry may be a late entry. Those who continuously sit in front of the PC or Tape do this kind of common mistakes. So channel monitoring leads you to a dangerous decision taking situation.
Before buying a rising stock, always refer a weekly chart to identify if that stock is building a base or if it is extended too far. Market action productivity usage is not bad always. Review a comprehensive chart book every week and making a list of good stocks that meet your fundamental and technical selection criteria help you a lot for the better usage of market action. Do one more thing daily check the volume of your selected stock and note it down. Take average daily volume so that you can easily identify any noteworthy increase in volume.
For the next couple of weeks keep this stock list with you. As time goes, one or two of stocks from your list will approach your buy point. Market watchers slow down during New York lunchtime. Also shows a strong color in the last hour of the day.
Role of tips in trading
Never buy stock on tips, rumors, or inside information. This sound wired to you because most of the people look for this type of tips, rumors. Beware of falling into typical market traps. Certain rules should be followed and keep this type of waste news away from you. These services and columns in some business newspapers are fed by street gossip, rumors, and tips, along with planted personal opinions or inside information. These services and columns, in my opinion, are unprofessional and simple. There are far sounder and safer methods of gathering information.
It is important to consider the difference between tips and wishful thinking. Bernard Baruch stressed the importance of this fact.
One of his famous rules specifies that beware of everyone who bearing tips such as barbers, beauticians, waiters etc. Near to option expiration dates a certain amount of distortion can occur in option able stocks. You can see some similar kind of distortion during year ending period such as December and sometimes throughout January and early February. During this period some confusing activities takes place. A lot of low-grade losers will suddenly seem strong, but some former leaders lie idle. In fact, year-end is a tricky time for buying stocks.
Starts from January general market sell-offs are occasionally taking place, which further adds to the difficulty. Fake-out actions like one big “up” day followed by a big “down” day can occur.
Small and mid-cap stocks get a boost during January; this effect can be confusing and spurious indicator. It works well only for a brief period. Don’t get sidetracked by this type of less-reliable indicators, because there are many arise during this time. Stick with your own rules. That is more important.
Sometimes tape analyst rearranges strong and weak stock. Sometime tape will tell you that the underlying market may be stronger than many people believe. But in practice it will come negative. In some other case, if highly positive news hits the market and stocks give ground slightly, tape would have been conclude that underpinning of the market are stronger than previously believed. This is the way the tape analyst rearranges the stock.
Role of news in stocks
Efficient traders less concern about the goodness and badness of the news by the same time they check its impact on the market. How these good or bad news affect market. If the news seems to be bad but market is going in the right way they take it as a positive sign. Please be careful about the good news also because sometimes it can also be gets reversed. So concentrate more on analyzing news effect on the market rather than concerned with the goodness and badness of the news.
Experienced market investigators do smart work. They have long memories and they usually keep records of past market action towards past news. This record would include how many times market reacted against the news and how many times market goes in the same direction. Both good and bad news become old news. These old news will often affect opposite direction on stock market from what it had when the news first broke.
Don’t forget these simple things
Also for making best earnings from trading you have to follow some certain rules and strategies. Loss is usual in trading. Every beginner can lose money initially. But step by step you can regain your lost money. But the most important thing is don’t try to climb up by using lift use steps to go up. That means don’t try to make one million dollars from one trade because small gains add up over time. Similarly don’t think that you can be profitable all the time. Loss is an unavoidable part of trading. During your study time it must be essential thing because you can contain them and can regain from them.
Everybody wish to catch the stock perfectly. That means, want to catch the exact bottom or the exact top of any stock move. But perfect timing is a myth. Besides of selling too quick or selling too late try to find an exact entry point. In other words don’t be greedy prefer profit from roughly one third or one-half of the move. Slow and steady wins the race.
You do not have to wait for bullish market all the time. It doesn’t matter if the market is bullish or bearish try to find opportunities in all market. Realize the fact that your money is nice and don’t wait for bullish market to come, recognize that you can go long and short based on the current market conditions. Peoples are not only making money in bull market but also making money in bear market may be more than that of bull market. But taking profit from bear market is sometimes difficult and more risky than bull market. You have to wait for your indicator to act then trade. If the indicator doesn’t go off, do not act.
These are all thing. Even if you are a beginner or professional, there is no exception. This is for people who don’t have fear who don’t have greed who don’t want to follow tips, who don’t want hot picks, but want to study and grow up over time.
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