Why Investors Fail in Stock Trading?
There are people who are in stock trading for a long time. However, still they fail to make money after being in the business for such a long time. Why it is so normal, when you meet stock investors they say, they are not making any profits.
In fact, I am tired of listening this for years now that they do NOT make money in stock trading even after so many years. Well! I want to suggest those people, you do not make money in stock trading by just following experts advice. In this business, you need to use your mind.
To make money in stock trading, it is very easy. I am telling you 15 chart secrets that can help you to make profits when you invest in stocks.
1. Comprehending Psychology of Markets
First thing first. First secret is to understand the market. You have to use your mind and imagination to understand what is going inside the markets. Not just domestic markets but international markets also. You have to be very analytical and make meaning of things which are hidden from the public.
For choosing a right stock, in-depth understanding of the market is the first step.
2. Observing Price, Volume and Time of a Stock
Next secret that you have to consider is, observe the price, volume and the time period of a stock. All the three factors are directly affected by the collective psychology of the markets.
You need to choose a stock with right price and in right volume and at the time when momentum is very high. Combining all three will give you riskless investment.
3. Resistance & Support
Third secret is resistance and support. This is very critical aspect of stock trading. You must know the resistance and support of a stock. You need to find stocks with support and resistance to make money.
People usually neglect this aspect and they fail to make profit.
4. Stock Loss
Fourth secret is stock loss. If you take my suggestion then Stock loss could be a great asset for a stock trader. Stock loss could be a game changer if you totally grasp this concept. Many stock investor start investing without realizing stock loss. Never do this mistake.
5. Accumulation & Distribution
Accumulation and distribution of stocks is the fifth secret. You have to pick up a stock at right time where it can give you hell lot of money. In stock trading, you do not need to be everyday in the market. You could be in the market for just one day and make millions of dollar.
It could only be possible, if you do proper accumulation and distribution of stocks.
6. Rise takes Time & Falls are Swift
Sixth secret is about the rise and fall of a stock. Investors need to understand the technical chart of a stock. This is common phenomena that rise of a stock takes time but its fall is very swift. Hence, all investors out there should make their decisions based upon rise and fall theory.
Otherwise they are bound to fail.
7. Notice the Head, Body and Tail of a Stock
Seventh secret is noticing head, body and tail of a stock. It is common that investors only think of profits and they forget to think risks. Mitigating risks is one of the most challenging aspects of stock trading.
By observing head, body and tail of a stock, you can know the rise and fall of a stock. This is very important for making money at lowest risk.
8. Developing Human Psychology
If you want to be successful in stock trading then you need to develop human aspect for analyzing charts. Psychology to understand markets is not god-given but you have to develop over the period of time with experience.
Understanding and knowledge of markets is very important to make profit.
9. Understanding Graphic Representations
Ninth secret would be mastering the graphic representation of charts. Graphic representation is the best way to analyze what is going to happen in coming days.
Your trading performance would increase substantially once you have understood graphic representation of charts.
10. Reading Charts for Day Trading & Long Term Trading
Reading charts for day trading and long term trading is very important for investors. One important point to note here is chart for day trading could be completely different from chart for a long term trading. Hence, you have to read charts for more profits.
11. Integrity of Charts
Analyzing profitable stocks greatly depends upon the technical charts. However, what happens when chart itself is manipulated. Hence, we are questioning the integrity of charts itself.
If charts are driven by supply and demand then they are real. But when a stock has low lucidity and controlled by one or two people then charts are manipulated. So always keep this point in your mind, before you invest.
12. When it’s over, Its Over
Twelfth secret is when it’s over it’s over. It simply means, when a stock is dead then it is dead. Many investors do not get out of a stock thinking it is going to come back. This thinking could lead to total disaster.
Hence investors should keep this factor in mind and get over the failed stocks.
13. What Happens When Chart Fails
Well! Remember a chart could fail, just like a democracy could fail. If you vote but votes are manipulated and election results does not reflect the will of the people then democracy has failed. Similarly, charts could also fail.
You have to keep this fact in mind.
14. Cutting out the Noise
What you listen about the stocks via various mediums like 24/7 news channels or from other experts are mainly a noise. A kind of fuss.
You need to cut down this noise and use your brain to analyze things. There is no substitute for self-education.
15. Finding the Right Trade that Fits You
Last secret is finding the right trade that fits an investor. After going through all the 14 points, you can make out, stock of which trade suits you the best.
Finally, I will conclude saying every investor should follow these simple, yet powerful 15 secrets to become a successful investor and make huge amount of money in Stock Market.