Easy To Read Stock Charts
Stock trading provides massive capability for making money, and millions of people worldwide do make money from it. In spite of this, there are fatalities, but there is a way to make sure you’re not one of them – just by gathering the true information.
The dilemma with most stock market books is that you require a great degree of comprehension before you can get started. Analysis a company’s yearly report well can take you years to study to do appropriately.
There are hundreds of books on technical indicators and convoluted trading methods on the market in order to learn how to buy sell stocks. There are dozens of contradictory ways to trade and make money on the stock markets.
What’s certainly needed is an initiation into the stock market that can instantly be actioned, and one that sends people up the learning curve quickly, without costing the earth.
What happens to people who want to trade the stock markets, but don’t have an idea about any of these things? Most go into day trading and try to make a little bit of money here and there, thinking that if they only have very short term position, usually intra-day, then they can’t lose too much money. The fact is that over 90% of day traders lose all their money in the first year.
Sometimes, people go the other way and buy familiar stocks, like auto makers, banks and large household names. The results here are often little better, especially right now, in the middle of the credit crunch. Buying and holding for security in the stock market without a huge level of knowledge is almost as risky as day trading. Buying Ford or GM would have returned 0% return in over 25 years (-65% or more in real terms) …and they don’t come much bigger or well known than that!
There is a third way that doesn’t require a huge amount of knowledge of a company’s accounts and a massive amount of knowledge about technical indicators. It’s called momentum trading. Basically, it means taking a position for a few months to a few years. This way, the two risky sides of the timeline are taken out, and you can gain from the lion’s share of the price moves that good stocks always make.
There is still an element of risk involved, but this risk can be largely removed from your trading. Sound principles of money management, combined with methodical research, stock picking and stock selling are all that are required.
Anyone can trade in a way that is profitable and risk controlled. The best way to accumulate capital to provide the income needed to be rich quickly is to speculate in property or stocks in an intelligent and risk controlled way.
Easy To Read Stock Charts
Monday, November 9, 2009
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