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5 Steps To Profitable Stock Investing

These 5 steps will help to put you on the right road all through the year:

1. Locating your stock. As you know, this is not an easy task. With over 14,000 stocks available on the US markets, you must be comfortable with whichever method of trading suits you. This is going to be down to trading with fundamentals, or by technical analysis. There is plenty of information which can you learn from, but do take the time to learn properly.

If you don’t have the time to learn analysis, you can always hire a professional to locate stocks for you. Three years ago I started a service to help investors with limited time, make big profits in the stock market. Click here to discover more investing strategies and good stocks to invest in.

2. If your sights are on the long term, you could probably consider yourself to be an investor, rather than trader. Fundamental analysis is usually the stock-in-trade of those who wish to focus on the long term holding of a stock. You will be more interested in getting to know how a company performs in more detail than what you can see on a stock chart, which gives the opportunity to analyse the picture of price movement.

3. Technical analysis, or charting, is the one I go for every time. It is mostly done online these days. Its characteristics make it the favourite with day and swing traders alike, because of its versatility and usability. Everything you need to know to place a trade, or open a position, as it’s often known, is in one picture, a picture which you can full edit with indicators and so on, according to your preferences. Whatever happens during a day’s trading, all company activity ends up in only one result, the price of its stock – and that is exactly what you see on a chart.

Trading also works exceptionally well in volatile markets like we are seeing now. If you would like to learn how to “trade” rather than “invest” in the stock market, I recommend you check out this DVD, “How To Trade Stocks In A Volatile Market”.

4. Keep an eye on your trades, so you know when to exit. If you are using correct stop-loss management tools, this is not quite as necessary, as you’ll get stopped out when you trade hits your pre-applied target, but that said, you may prefer to use a trailing stop and keep locking in your profit. It depends upon how often or closely you can access or monitor your positions.

5. Don’t forget to check out the overall scene, and which stocks and sectors are doing what. There’s always a gem of a trade in there somewhere, and if not, then there’ll be another one just around the corner. As you observe more and more, you will get quicker and more efficient at this, and soon you will just be able to make sound judgement by just scanning over your information. The detail will jump out at you.

These 5 steps introduce you to a map of the road that lies ahead of you, there is plenty to keep you occupied, and with your due diligence, plenty of profits in the years to come.

 

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