How to make money on the stock market?

Make money on the stock market

Only a small percentage of investors are able to generate profits year after year. The vast majority of people investing in the stock market are losing money. How is it happening and what do people doing differently than those who lose?

How to make money on the stock market in that case? What do you do best other than the rest?

You can see in their actions that they often do things quite contrary to what the other do. However, some of the techniques used by them are familiar to most investors.

Earn on the stock market: use securing stop order fate.

These orders will allow you to automatically "cut losses short". It is important to place a stop loss at the same time you open the position. If you do not do it right away you will only be delayed and your loss will be greater than if you did it right away.

Also remember not to use the "too narrow stop" lot, because then even a small price turbulence can throw you out of the market.

Earn on the stock market: use the opposite services to convince the majority.

If the vast majority of stock market investors are convinced that they will rise, then use it to play down the declines. If the overwhelming majority is convinced that there will be drops then use it to play for growth.

Earn on the stock market: avoid trying to shoot yourself perfectly into the hole or peak.

If you play against the trend then you make yourself very vulnerable. It is better to wait until the market confirms that the bottom or top has formed and only then open position.

Earn on the stock market: Look for opportunities to make a deal when the ratio of the biggest possible loss to the largest possible profit is as small as possible.

If the stock market is in the vicinity of important historical wells, it may mean that the growth play has a good chance of generating substantial profits.

Always analyze the stock market in the long run and see what levels of support and resistance are important.

Earn on the stock market: do not be afraid of too early profit making

Sometimes it happens that you open a position and within a few days you have a profit greater than you thought you could achieve. Instead of watching the stock market with open position and wondering how it happened, that you made so much profit as quickly as you make a profit and watch what happens next.

Earn money on the stock market: learn to fall for the game

Most emerging stock market investors are just bullish. However, it is worth learning how to use short sales, because prices usually fall much faster than they grow. Therefore, by applying short sales you can earn more in less time.

Earn on the stock market: find break points for the trend line

When the trend line is broken and for 2-3 days trading is out of the trend channel, this is the opportunity to open the position. When the growth channel is broken and the trade for 2-3 days is played under its lower limit it is a chance to play on the decline.

If, however, the upper limit of the channel is broken in the downtrend, and trading for 2-3 days is over this level, it is a chance to play for growth.

Earn on the stock market: what are the most common turning points in the market?

Momentum in the uptrend is very common when prices go to new heights at high turnover, but later the closing price is lower than the closing price of the previous day.

A turning point in the downward trend is when the prices go to a new bottom but later during the section I have a rebound and the closing price of that day is higher than the closing price of the previous day.