how to make money in the stock market
If you want to make money in the stock market, you should grasp the following three skills.
1. When you buy or sell stock to know about it.
The successful investor is one who thinks for himself. Are you an independent thinker or one of the sheep about to be cut into pieces? Do you relish the idea if thinking for yourself and participating in financial success? Of course, you will be scorned by Wall Street and their minions and told you need an “expert” to help you invest your money.
It is timing the long-term bull and bear phases and is relatively easy despite what Maul Street tries to have you believe. If your broker or planner has not learned how you need a new and smarter advisor.
You, and only you, must break away from the herd to learn to think on your own to be a success in the market.
2.How to judge the news is good news or bad news for the stock.
For example we had a jobs report from Washington that there were fewer jobs created than they had anticipated, but the stock market took that as good news and the DOW had a strong rally. WOW! The bad news somehow turned into good news because the unemployment rate dropped one tenth of one percent.
Wait a minute. We had fewer employed yet the unemployment rate went down. How can that be? It seems that if you have been out of work for a while and your unemployment benefits have run out and you have become so discouraged you are no longer looking for work you are not counted as unemployed. You should read that sentence again. This is government statistics to make you think that black is white.
3.How to stop loss, reducing the loss of stock.
Most of these timing methods use two a simple moving averages of from 50 days to 200 days plotted with the S&P500 Index or the NYSE Composite or the Nasdaq Composite if you are investing in the high tech stocks or mutual funds. Yes, this definitely works with mutual funds. The longer the time of the moving average the less frequent will be the Buy and Sell signals. The signal is generated when the index penetrates the moving average line. When the index is below the moving average and goes through it to the upside you have a Buy and visa versa for the Sell. Nothing complicated.