Friday, April 25, 2008

Is Luck The Answer Of Stock Trading Success?

You must be seeing people earning millions in the Evel Knievel Stunt Cycle market. How do these people invariably invest Idaho Lemon Laws the stock that performs well? The answer is not luck; in fact the key lies in study. If you study it closely you will realize that the market gives out signals indicating its performance. There are two major components that determine its movement. It is price and volume. The price will determine whether people will be going long (buy) or will be going short (sell). The other component is the volume, the volume determines whether the stock is likely to witness any movement or not.

Most of the time of investors and brokers is spent in trying to figure out, which stock to invest in. It is a really taxing job, so much so that some people even seek divine intervention to help them pick the right one. But, the truth is that guess work doesn't pay, in order to be successful you have to study the stock movement; you have to understand its every move. Most of the times the stock follows the trend of the stock-market, after all they comprises the market. In case when the market is performing well, the prices rise, this is called a bullish. When the market performs badly, the prices stoop this is called a bearish. As mentioned earlier, in order to predict the performance of stock-market it is very important to look at its price and volume. Let us see how you can determine the price and volume.

In order to determine the price, the stock brokers and the investors look at the three major indicators, which are The Dow, S&P500 and NASDAQ. An analysis of these indices can help to determine the likely price and movement of the market.

It is very easy to find out the volume of the stock-market, volume is the daily sales from that can be found out from any financial web site. A high volume day is when both the prices and the volume is on the rise, it is that time when the investors are the happiest. It signals that the market is rising and the stocks are performing well. On the other hand days when the prices are falling and there is large volume, there is an indication of trouble. This is because; it means that people at large are withdrawing their money from the stock-market.

There is one thing that investors should keep in mind, there always are chances of reversals in the stock-market. Reversals generally happen because of the presence of operators, these operators work for big firms and institutions Bob Steele Western can actually control the stock-market and its movement. So you shouldn't be surprised if a rising market suddenly falls of vice versa. You should stick to the strategy that suits you the best.

Finley Zhang is a stock investing expert and owner of www.TipsForInvestment.comTips For Investment. Tips For Investment helps Bermuda triangle stock investor to achieve long term and stable income by using Finley's investing tips, methods,and Strategies. You can instantly download the formula by visiting www.TipsForInvestment.comhttp://www.TipsForInvestment.com.


This page is powered by Blogger. Isn't yours?