We all love easy money. What’s not to like? It is often perceived that stock market is the easiest way to make a few easy bucks.
Even professionals and people with years of experience go wrong while trying to make a calculated risk. Marketing timing is nothing but the attempt to predict or guess the future movements of the stock prices using technical and analytical tools. It is often perceived that the predictions made are nothing but shots in the dark and are said to be fluke. Nothing can be farther from the truth.
While making a mistake can often be a disaster, it is possible to avert it as much as possible by going in for smaller investments. In this way even if you cannot completely avoid loss, you can at least minimize to the smaller extent possible. In the greed to make as much money as possible in the shortest amount of time, most people end up going broke. Strategy and planning are a very important part of stock broking and it is the most looked over part as well.
In the process of building your career as a stock market investor, one of the first things you need to look for is a proven stock market system. This is one of the first things you need to do in order to determine stock market timing. This system will be your guide in the initial days and help you decide where you should be putting your money. As a beginner having the help of a market resource which will help you or provide you with stock tracking can also be very useful.
The most important virtue to have and put it constantly in practice is discipline. More often than not people get carried away and act on impulse or on some hot tip given by a trend, knowing that the tip is not backed by research or analysis. Though it sometimes does pay off, there is more chance of you falling flat on your face and losing the money you have put in it. Practicing discipline and religiously following the market trends in the system of your choice and then making a educated and calculated guess is the only way you can be as sure as you can ever be to make money in the stock market.
To trade mutual funds and stocks successfully, you must first understand the stock market stages that individual stocks or mutual funds and what the overall market go through. These cycles tell you if you should be long, short or in cash. Once you are able to identify what stage it is in, you can then trade accordingly to those characteristics. After a while you won’t even have to think about whether you should be long or short.
In the end it all comes down to experience, and you get better at stock market timing as the time goes on.
There are only so many good Top Financial Advisors that know how to make the right decisions.