Online investing continues to be popular among consumers, due in part to the fact that it meets most Americans’ requirements – it’s fast, easy and convenient.
However, in trading the stock market, no-one has a crystal ball. The price of stocks goes down, as well as up. It is all in the ability to read the charts that makes you gain the money you desire. There is no such thing as bad stocks and you only make a good profit on the good stocks, don't believe the hype. Once you know how to read the charts properly you can gain trading up or down.
The method that I have found to work the best is to know how the market makers move. Market Makers are the ones who control the market and decide if it is moving up or down. The good thing is that they are consistent and never change market movement from day to day, month to month, year to year. They know that most traders will never understand the rules they have laid out so they will continue to trap those who dont know and take their money.
The markets tend to flow in cycles.It doesn't matter if it's Forex, Blue Chip, Penny Stocks, Commodities, or Crypto they all move the same; a stock will reach a peak, and then retrace; retracement can be up or down based on the direction of the peak. It will do this numerous times within its cycle. Once the cycle is complete it starts the cycle over again. Wash, rinse, repeat.
Once you learn how to read the chart and its cycle then you decide are you willing to invest in a trade. The simplest method to decide on how much to invest is to trade 10% of your trading account balance.
However before you submit your trade make sure you know when to hold and when to fold. Most savy traders have an exit strategy that will enable them to successfully trade. One successful strategy that I use is a trailing stop loss.
To always keep the profit you have made so far its best to use this successful strategy. For those who don’t know what a stop loss is, let me explain briefly. A stop loss is an order for your broker to sell your shares if the price dips to the level that you have specified. As the price of the stock increases, it automatically moves the level of the stop up to keep the percentage gap the same and protect the profit you made to far.
Using the stop loss as an exit strategy, only works if you stick to it, and not lower it once you see your trade has taken off and gaining good momentum. Your direction will be right, but what usually happens is the price keeps moving and eventually it will go thru retracement, and if your percentage gap is too wide you loose the money you just gained and will have to wait until it comes out of retracment to get it back which could take days or weeks, putting you in what some call a "bad trade".
Stocks will always go thru retracement before it continues to complete the cycle. When it does, this is the best time to take your profit, exit the trade. However, those who are gurus at trading and are holding their position on the week or monthly chart will keep the trade during retracement and wait for it to continue its cycle to fully profit.
Investing in the stock market can be very rewarding once you learn how to read the charts and follow the cycle. There is no need to buy costly bot software or signals; just use your own eyes to learn the cycle and you will always profit!
Anyone can learn how, its very simple, even kids that have learned are crushing it, thats how easy it is. If you are ready to learn how to read the charts and increase your income without having to: work long hours, go thru 4-6 years of college education just to make some money, or need thousands of dollars to become financially independent click here.
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