Timing the market with technical indicators can be the fastest way to grow your money. However many people overlook this. They assume that getting into strong stocks without timing it first can be just as profitable.
Timing the market with technical indicators can be the fastest way to grow your money. However many people overlook this. They assume that getting into strong stocks without timing it first can be just as profitable.
It is helpful to have some knowledge about what makes stocks move. If a company comes under criminal investigation it can signal the stock will drop. But that is not enough.
You need to know how far it will drop, or when is the best point to get in, or out of the position. If you heard very good news about a company and the stock just jumped 15% you need to be able to determine if the stock has already made its run or if it is giving off a signal that it is about to make another run.
Most investors will overlook this. They hear about a stock that is shooting through the roof. Rather than waiting to get into the trade at the best possible time they just enter it and get hit hard when they buy at the wrong point.
Because of this it is not enough just to know how well a company is doing or how well the stock is doing. You must be able to time the market and get in and out only when the stock is giving off signals. This way you can enter a stock at the best possible time.
Without technical indicators such as chart patterns and trend you can end up getting in too late or out too early like the majority of stock market traders. This can be devastating to a trading account.
Most people do not try to time the market because it is harder than just buying a random stock. It takes more time and effort, but the effort you put into a skill like that pay you in having much higher returns than those who did not take the time to learn.
For more information about the stock market visit http://www.stocks-simplified.com
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