subject: Investment In Stock Market [print this page] Stock trading success...why is it so elusive? With all the trading information, systems, trading advice and assistance available today, the fact that most people who attempt to profit from trading Stocks lose money seems quite bizarre.
Never chase a stock. Let it come to you. You might have just missed the big one, but another one will come along.
Can you imagine the millions of dollars that must have been spent by countless traders on courses and Stock analysis software, that was wasted because the buyers didn't understand the key principle of trading success I am about to share with you now. If trading was an easy business to master and profits were freely available to all, every punter with a computer and a free charting program would be a millionaire and the streets of our cities would be clogged with chauffer driven limousines. The fact that the majority of the population have no idea how to make a buck from the Stock Market, often after spending large amounts of money on education and trading losses, made me wonder why this is so.
Share trading can be very profitable but you have to be careful. The stock market doesn't care if you are experienced or a newbie stocktrader. The rules and the trading opportunities are the same for every one at any time, so either you're going to make money when you make a trade or you are going to lose some of it in favor of the more seasoned stock traders.
The key to successful trading is to control any losses you incur. This means firstly setting a rigorous stop loss that will trigger automatically, and secondly trying to ensure that your entry criteria give a better than average chance the stock will move the right way.
The stock market can present you with a lot of news trading opportunities every day. Some of them are extremely risky while others are not as good as they seem. When you know how to identify and approach the best hot stock pick 's, you are able to generate a consistent and respectable amount of money in a very short period of time.
Choose your target security or stock, and wait for it to start moving upwards strongly. This could be because the whole market is in an upswing, or perhaps your chosen stock is forging ahead on good news.
Regardless of good clean entry points, you still must always have a stop loss in place, because the markets will come and get you if you don't. How do you set a good stop loss? It's not so hard as you might think! Space precludes me explaining in this article, but the topic is covered at www.companyeye.co.uk/subscribe.html
Once you learn to master your stock trading buy / sell decisions, you can aspire to produce consistent profitable results.
Learn how to trade hot stocks in a practical way at Company EYE
