2006-08-30 20:46:57 · 7 answers · asked by Anonymous in Business & Finance ➔ Investing
Use Technical Analysis, develop a system that gives you an "edge", back test the system thoroughly and most important: stick to it.
Trading stocks can be resumed to one phrase: cut your losers and let your winners run. In my experience of any four trades I enter one will be a looser, two will move only a few percent up or down and one will be a winner. It is important to get rid of the first three quick and get the most profit out of the fourth.
A typical trend following system, will give you 40% winners, but the winning trades will make 3 times as much money than the average bad trade will set you back.
A good place to start learning is:
http://en.wikipedia.org/wiki/Technical_analysis
And you can test your ideas here:
http://www.wealth-lab.com/
2006-08-30 21:12:13 · answer #1 · answered by cordefr 7 · 1⤊ 0⤋
You can make money only if you follow the pattern of the stock movements and not what your ego or the mob says. Stock pattern and its movement can be understood with the help of Technical Analysis.
Although the technicals can be wrong, it is a rare case. It happens when some fundamentals or some news hit the markets. Also be in touch with news of that stock because many stocks move in a highly volatile range when specific news of that company comes, may it be confirmed news or rumour.
Strict Stop Loss and fair amount of margin helps in managing your capital/wealth efficiently. You need to work much harder to manage and grow money.
Always think before you trade and not after. Do not overtrade and don't be over confident in making bulk trades.
Happy Trading!!
2006-08-30 20:58:59 · answer #2 · answered by Jatin Shah 2 · 0⤊ 0⤋
It is not easy. Warren Buffet is by far the most successful. He doesn't trade stock constantly. He buy and hold. Most people can't repeat what he did.
Try these two books. If you read them, you won't lose money.
1. The Essays of Warren Buffett : Lessons for Corporate America
2. Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor
Good luck!
2006-08-30 23:40:08 · answer #3 · answered by Price is what you pay for value. 3 · 0⤊ 0⤋
Hi, i know what your question means. i also think stock market is a nice place for investing.
I found some useful tips in stock trading. It includes stock basics, how to protect your profit, find a potential increase share, control and manage stock risk, when to sell/buy stock and so on.
http://www.bernanke.cn/stock-trade/
Best Wishes && Good Luck!
2006-08-31 19:07:06 · answer #4 · answered by stock_trade_expert 3 · 0⤊ 0⤋
Hi:
I am Vishal from "Satco Securities", promoted by the Satguru Group and a member of the bse, nse and mcx.
Satco Securities is headed by our CEO - Shri Gerela, who is MA LL.b, CAiib. Prior to joining SATCO as chief executive officer, he has worked in senior positions with reserve bank of india (rbi), securities and exchange board of india (sebi) and stock exchange, mumbai (bse) for over 4 decades. He provides all our clients research based delivery tips which have very good returns in the short n the long run. On a regular basis, we also provide intraday calls, as and when we receive them from our senior research analysts.
We take the pleasure of inviting all retail investors to start doing business with us on a mutually beneficial basis. We are also open for business franchisee in terms of M.A. or sub-brokership.
Please do feel free to get in touch with us via our relationship manager - Mr. Vishalsinh Varma - 9821800321 for further details in Bombay.
2006-08-30 21:02:47 · answer #5 · answered by Vishal 2 · 0⤊ 1⤋
get a real job and save its the safest way to make money. its not trading stock its gambling
2006-08-30 20:48:41 · answer #6 · answered by Phil P 2 · 0⤊ 1⤋
Invest in good shares for long term
2006-08-30 20:53:28 · answer #7 · answered by king 4 · 1⤊ 0⤋