Author: Eduardo Montero
Last Updated on March 30, 2022
Stock market is one of the world’s most dynamic market. If you have a look at the electronic board of the indices and the pace at which it moves, you will know how dynamic the market is.
The basics to enter the stock market is to have a strategy. when i say strategy, it mean when to buy a share, at what price should i buy, when i should i exit? these are few question you must ask yourselves
If you think you can buy the shares and sell when the price goes up and make profit, well you are wrong. You will never know when the price will go up. Who knows, the stock might be already standing in its highest position ever. You might have bought the share at a wrong time.
So how should you device a good stock trading strategy? First things first. Create the portfolio. Wait for a few months. Learn the behaviour of the shares and its fluctuations with respect to the market’s behaviour.
In the mean time, you can also learn about the behaviour of the company you are trying to invest in. You must note that share price rise and fall with the investors confidence. A company which cannot hold its investors can never succeed. You must make careful analysis of these aspects.
You can also use this time to read some of the past datas using charts. You will get an idea of the minimum and maximum position of the share you are going to invest in. When you have all these datas under your belt, you can do your investment with ease. When you think the time is right, you can invest your money and the most important thing in stock market is to have exit strategy. If you have decided to get out at a certain limit, you must do it. Never allow your greed to take on you. Your exit strategy is more important than anything else.