Stock Market Advice Worth A Fortune
The stock market fools most peopleA lot of people start trading the stock market, thinking it is an easy way to accumulate a significant amount of money. They are under the illusion, all it takes is to read a book, or buy a so-called magic indicator or method, and success will soon follow. If it were that easy, nearly everyone would win. The truth is, most people lose, when it comes to trading. A major reason so many traders lose, is they blindly follow stock market advice, from those who do not have a clue what is takes to win consistently in the stock market.Acquiring a solid foundation of trading knowledgeTo become proficient in the world of trading, you must learn, and then implement, proper trading knowledge. The key is to learn from the true masters, past and present. These are the ones who already made vast fortunes trading the various markets. Study their strategies, methods, and principles. Find out what makes them tick. This includes William J. O’Neil, Michael Covel, Richard Dennis, Jesse Livermore, Bernard Baruch, Gerald Loeb, and Nicolas Darvas. Implement what you learn into your own trading.
Your results will improve dramatically. Be careful where you get your stock market advice, or any other trading advice. Learn to read charts Reading charts is a crucial skill, which can take years to master. Proper interpretation of charts, is one of the key factors that separates the novice trader from a true professional. Technical analysis, or chart reading, is the forecasting of future price movements. This is based on the analysis of past price movements, and volume considerations.Technical analysis does not result in absolute predictions about the future. If implemented properly, it certainly can help put the odds in your favor. You want to put as many factors as possible, in your favor, before taking a position in the market. This is great stock market advice. All trading is based on probabilities. Go with the flow A major key to stock market success, is the ability to determine the general trend of the overall market.
The best way to accomplish this, is by implementing the proper use of price and volume analysis. About 75% of all stocks follow the general market direction. It is wise to only buy stocks when the general market is in a confirmed uptrend. Basically, you want to see the market make a series of higher highs and higher lows. Another important part of the equation is volume. You want to see heavier volume when the market advances, and lighter volume when the market declines. Staying in sync with the general market direction is excellent stock market advice.