How to Choose the Best Stocks?
Most of new trader's don't have a much
knowledge and understanding of choosing
best stocks in stock market. And this become
so hard for them to understand that how they
can find good stocks to invest money in them.
Now days every new trader want to know
that how he or she can invest money with
good stocks?
Actually this is really important to know
that how we can invest our money with
right brokers, becausing investing with
wrong ones and blow our shipe very
earlier in this business. Here we all have
an aim to earn consistent money from
the market, eveyone want to become
financially free. Today I will discuss
some of those points which can
help you to find out good stocks
to invset your money with them.
So lets start.
1.Check Top 10 to 20 Stocks:
First of all we should check online
that what companies are on top right
now. All we know that now days its
not difficult to find out the top
10 or 20 companies on those
exchanges, we can easily get the
information about the on net.
2.Filteration: The second thing will
be a lot of practice, here I am not
saying anyone to do regular practice
in those 10 to 20 stocks. I would
recommend trader's to filter those
stocks and just go for the selection
of 3 to 5 stocks. So actually we have
to work with top 3, to 5 stocks.
3.Practice:Now we have to few months
of regular practice with those 3,5 shares
and it can help us to determine that which
of them suit to our trading character.
Here its also important to know that which
kind of trading character you have, Personally
I don't do trade more than 2 stocks. Because I
feel much comfortable when I do trade with
2 stocks at one time.
4.Trading System:A good use of trading system
would be also essential to make your profitable
with selection of your stocks, I believe that a
good trader can do trade with any kind of stock.
Here he have to just work with a good trading
system and if he have a good mastery in this
business then its does not matter what kind
of stock he is choosing he will be profitable
eventually.Building a good trading system would
be very important to give our best in our stocks.
5.Keep your eyes Open:As an investor and
trader both we have to keep our eyes always
open and have to be careful with the market
movements and fluctuations. We should also
pay attention on companies fundamental events,
technical analysis etc. It can keep us active all
the time and can give us future movements ideas
of those comapnies. Furthermore as a trader
we have to keep ourself active also especially
if we are spending time with intra day trading
then it become so much important to keep
ourself active with the movement of short
term time frames charts.
6.Avoid the Volatility: I believe that avoiding
Volatility in Stock market would be also so much
important. So many time I have seen that
trader's start to buy or sell a share when it
have a bigger movement already for the day.
Talking about the market cycle here, we all
should have proper knowledge of market cycle
and should avoid a big volatility.Its better to
place our order when a market cycle is
starting to build on chart or when its on its
birth.
7.Cheap and Expensive Stocks:
Its also important to know that cheap
stocks means not only a big profit always
So many time traders start to buy cheap
stocks and they believe that it will cross the
big amount of positive price movement change
very soon. But that's not true at all, in cheap
stock we have to still find out the best one and
there are a lot which are not suitable for trading
in exchanges. Along with it the same thing can
happen in Expensive stocks, some time they
can be good if you are buying or selling them
on right time and area. Talking about the same
common sense and understanding here.
8.Financial Result:The Financial result of
the companies can also tell us clearly that
which kind of health a company have, We
can find out companies health report any time
on internet, and can come to know that we
should invest our money with them or not.
Here there is on guarantee that good companies
will always do the best, some time they can go
in deeper trouble also. So we have to check
their financial result time to time.
When To Buy and Sell a Share?
Actually this is a process where you
have to pay attention on the use of your
trading strategy because that will be directly
related to your Entry and Exit area or
Buying and Selling in Stock market.
There are some these steps which we
have to add in our trading system to know
about it that when to buy and sell a share.
1.Trading Method: A good trading method
would be very important to know that when
we have to buy in the market and when we
have to exit in the market. In next post
I will tell you that how you can find out
a good trading method for you. Actually
there are so many methods in stock market
for trading but a trader should choose them
according to their taste, character etc.
2.Planning: A proper planing will be also
much essential to buy and sell a share
in market. This is nota few seconds of
guess where it will be easy to know that
where market trend will go in next a few
minutes or hours.So planning is crucial.
3.Experience:A regular experience of
the market will be also important to know
that when we can buy or sell a share on
right time in market. Here I want to add
again the term trading method, because
until we don't have a trading method
till then we would not have the experience
gaining in stock market. Actually the method
of trading and the term experience both are
connected with each other, during the use
of method we have knowledge but don't
have experience and we will learn it later
when we will start to implement our
knowledge in live market.
When to avoid the trading in stock market?
There is no doubt in that Stock market is a life
time business and we can participate in the
market five days in a week. But this is also
essential to know that we can't do trade all the
time, there is a time in market when we have to
just keep patience and have to just follow
the theory of watch and sit only.Lest
start to discuss about those scenarios
when we have to avoid the trading in stock
market. They are as follows:
1.Fundamental News:So many trader's don't
know about the fundamentals impacts, those
can be so much quicker some time and can
move the market within a very long way, as
far I know there is no correct analysis which
can be fully effective all the time on fundamental
events and that's why we have seen that trader's
start to work with Buy stop and Sell stop trading
method on news trading. But if you are a intraday
trader then better to wait for a while after the news
announcement, we can just wait for the right time,
means to say that when the high impact is already
finished then we can start to open our orders in
market, that's why I always take rest for 10 to 15
minutes when a new release in market.
2.Sideways Market:There are so many trader's who
love to follow the trend in short term time frames
but this is a market which can create so much
problem for then when they are following the trend
in short term time frames, this is mine problem also
I can't do much better trading when a sideways
market scenario is coming in front of me. I will
recommend trader's to use the technical analysis
during this time and always pay attention on
moving average indicator, because it can also
give you a very good idea about the trend market
and sideways market pattern.
3.All time high and Low breakout:This is a market
of stocks which can be called a uncertain market,
as we know that market is uncertain and some
market can cross the all time high and lower points
on charts, According to me most of time we read
that technical analysis is best to follow but in this
conditions its hard to say that which kind of result
we will get from the technical analysis, because
we are facing the first time this scene in the market
and can't say anything about the technical analysis
because there is no past to check this kind of pattern
on chart.
4.Continue Losses:Keeping patience and rest will be
also beneficial when a trader have continue losses
in account, so many time this happened to me too
but now I always close down my trades for the day
when I have 2 to 3% loss in my account. I think
this is one of the best method to control our psycho
-logy in forex market. When a trader is continue
losing then the emotion can force him to go against
the trading rules and he or she starts to work
with a revenge trading method, which is actually
not the right style of trading. But keeping ourself
away after the losses for a while will give us
a fresh mindset and planning again later to do
trade in stock market.
5.Psychology Control:Here I wand to add one more
thing that is the control of psychological aspects
in stock market. As I have discussed in earlier
post that emotion is very dangerous for trader and
it can burn our trading account very quickly if we don't
have a proper solution of its control. The main problem
is that emotion can lead to so many mistakes and
problems like greed, fear,aggresive trading, ignorance
of trading rules, etc. It can make trader blind and
make him or her worst any time here.So according
to me when we doing trading in stock market then
its important to know that we have a good control
on our emotions or not, and if we don't have than
better to forget about the earning first, and first
we should start to know and learn that how can
we control our trading psychogy in stock market.
12.How to Become a Successful Trader?
Well There is no proper answer for this
that how to become a successful trader
in stock market, but according to my
experience its depend upon our experience,
learning, practice, correction, dedication which
can make us successful trader in forex. There
are so many imporatnt factors upon which this
totally depend upon that which kind of trader
we are right now in this business. Some of them
I have already discussed above. But the main
point could be the understanding of the market.
Frankly speaking in first 4,5 years I have a very
bad experience in my life and I was feeling that
I was one of the bad trader on this earth, but
when I have started to learn things correctly
then I come to know that trading can become
easy for me if I have couple of good things in
my trading. Now I would like to discuss those
points with you they are as follows:
1.Trading Mindset:Or I can say that the
psychology control. This is really very
important to adopt the right psychology
in our business. You all can search about
it and read everywhere on the net that 80%
success come from the control of our
mindset. Shocked?
Yeah this is really true that if a trader
good trading mindset it mean he or she
have grabbed that 70% success already
in this business.Because by controlling
our psychology there will be no problem
of wrong management, fear, greed,
emotions etc in our trading.
2.Good management:A good use of risk
managemenr and money management are
also so much important to maintain a good
level of accuracy of earnings in our trading
account. You can see that when we don't
have the right management then most of
time risk can go higher and 99% of time
we have losses in account. But a good
management can lead to the margin money
and it can reduce the big loss in account
3.Strategy:Here is the last thing Our trading
strategy, 20% success is also depend upon
our trading strategy if we don't have a good
trading strategy then so many things can go
wrong. Like wrong entry and exit points, wrong
trading analysis, Regular losses and higher
drawdown etc. Using a good trading strategy
is really important to make a good use of
trading patterns in stock market.
Now this is the time TO Share my Personal
trading strategy with all of you.Actually
these trading strategies are suitable for
all kind of trading sectors and platforms
you can use them in big stocks, penny stocks
forex trading market etc. I am sure
that most of you don't have any idea of these
strartegies because they are the hidden
ones and only a few percentage of traders
know about these strategies.I am working
with some of these strategies and getting
good success rate in my trading account
so far, last 2,3 year's I have a good consis
-tent gains in my account from these
strategies. Lets start to discuss some
of them.
Most of new trader's don't have a much
knowledge and understanding of choosing
best stocks in stock market. And this become
so hard for them to understand that how they
can find good stocks to invest money in them.
Now days every new trader want to know
that how he or she can invest money with
good stocks?
Actually this is really important to know
that how we can invest our money with
right brokers, becausing investing with
wrong ones and blow our shipe very
earlier in this business. Here we all have
an aim to earn consistent money from
the market, eveyone want to become
financially free. Today I will discuss
some of those points which can
help you to find out good stocks
to invset your money with them.
So lets start.
1.Check Top 10 to 20 Stocks:
First of all we should check online
that what companies are on top right
now. All we know that now days its
not difficult to find out the top
10 or 20 companies on those
exchanges, we can easily get the
information about the on net.
2.Filteration: The second thing will
be a lot of practice, here I am not
saying anyone to do regular practice
in those 10 to 20 stocks. I would
recommend trader's to filter those
stocks and just go for the selection
of 3 to 5 stocks. So actually we have
to work with top 3, to 5 stocks.
3.Practice:Now we have to few months
of regular practice with those 3,5 shares
and it can help us to determine that which
of them suit to our trading character.
Here its also important to know that which
kind of trading character you have, Personally
I don't do trade more than 2 stocks. Because I
feel much comfortable when I do trade with
2 stocks at one time.
4.Trading System:A good use of trading system
would be also essential to make your profitable
with selection of your stocks, I believe that a
good trader can do trade with any kind of stock.
Here he have to just work with a good trading
system and if he have a good mastery in this
business then its does not matter what kind
of stock he is choosing he will be profitable
eventually.Building a good trading system would
be very important to give our best in our stocks.
5.Keep your eyes Open:As an investor and
trader both we have to keep our eyes always
open and have to be careful with the market
movements and fluctuations. We should also
pay attention on companies fundamental events,
technical analysis etc. It can keep us active all
the time and can give us future movements ideas
of those comapnies. Furthermore as a trader
we have to keep ourself active also especially
if we are spending time with intra day trading
then it become so much important to keep
ourself active with the movement of short
term time frames charts.
6.Avoid the Volatility: I believe that avoiding
Volatility in Stock market would be also so much
important. So many time I have seen that
trader's start to buy or sell a share when it
have a bigger movement already for the day.
Talking about the market cycle here, we all
should have proper knowledge of market cycle
and should avoid a big volatility.Its better to
place our order when a market cycle is
starting to build on chart or when its on its
birth.
7.Cheap and Expensive Stocks:
Its also important to know that cheap
stocks means not only a big profit always
So many time traders start to buy cheap
stocks and they believe that it will cross the
big amount of positive price movement change
very soon. But that's not true at all, in cheap
stock we have to still find out the best one and
there are a lot which are not suitable for trading
in exchanges. Along with it the same thing can
happen in Expensive stocks, some time they
can be good if you are buying or selling them
on right time and area. Talking about the same
common sense and understanding here.
8.Financial Result:The Financial result of
the companies can also tell us clearly that
which kind of health a company have, We
can find out companies health report any time
on internet, and can come to know that we
should invest our money with them or not.
Here there is on guarantee that good companies
will always do the best, some time they can go
in deeper trouble also. So we have to check
their financial result time to time.
When To Buy and Sell a Share?
Actually this is a process where you
have to pay attention on the use of your
trading strategy because that will be directly
related to your Entry and Exit area or
Buying and Selling in Stock market.
There are some these steps which we
have to add in our trading system to know
about it that when to buy and sell a share.
1.Trading Method: A good trading method
would be very important to know that when
we have to buy in the market and when we
have to exit in the market. In next post
I will tell you that how you can find out
a good trading method for you. Actually
there are so many methods in stock market
for trading but a trader should choose them
according to their taste, character etc.
2.Planning: A proper planing will be also
much essential to buy and sell a share
in market. This is nota few seconds of
guess where it will be easy to know that
where market trend will go in next a few
minutes or hours.So planning is crucial.
3.Experience:A regular experience of
the market will be also important to know
that when we can buy or sell a share on
right time in market. Here I want to add
again the term trading method, because
until we don't have a trading method
till then we would not have the experience
gaining in stock market. Actually the method
of trading and the term experience both are
connected with each other, during the use
of method we have knowledge but don't
have experience and we will learn it later
when we will start to implement our
knowledge in live market.
When to avoid the trading in stock market?
There is no doubt in that Stock market is a life
time business and we can participate in the
market five days in a week. But this is also
essential to know that we can't do trade all the
time, there is a time in market when we have to
just keep patience and have to just follow
the theory of watch and sit only.Lest
start to discuss about those scenarios
when we have to avoid the trading in stock
market. They are as follows:
1.Fundamental News:So many trader's don't
know about the fundamentals impacts, those
can be so much quicker some time and can
move the market within a very long way, as
far I know there is no correct analysis which
can be fully effective all the time on fundamental
events and that's why we have seen that trader's
start to work with Buy stop and Sell stop trading
method on news trading. But if you are a intraday
trader then better to wait for a while after the news
announcement, we can just wait for the right time,
means to say that when the high impact is already
finished then we can start to open our orders in
market, that's why I always take rest for 10 to 15
minutes when a new release in market.
2.Sideways Market:There are so many trader's who
love to follow the trend in short term time frames
but this is a market which can create so much
problem for then when they are following the trend
in short term time frames, this is mine problem also
I can't do much better trading when a sideways
market scenario is coming in front of me. I will
recommend trader's to use the technical analysis
during this time and always pay attention on
moving average indicator, because it can also
give you a very good idea about the trend market
and sideways market pattern.
3.All time high and Low breakout:This is a market
of stocks which can be called a uncertain market,
as we know that market is uncertain and some
market can cross the all time high and lower points
on charts, According to me most of time we read
that technical analysis is best to follow but in this
conditions its hard to say that which kind of result
we will get from the technical analysis, because
we are facing the first time this scene in the market
and can't say anything about the technical analysis
because there is no past to check this kind of pattern
on chart.
4.Continue Losses:Keeping patience and rest will be
also beneficial when a trader have continue losses
in account, so many time this happened to me too
but now I always close down my trades for the day
when I have 2 to 3% loss in my account. I think
this is one of the best method to control our psycho
-logy in forex market. When a trader is continue
losing then the emotion can force him to go against
the trading rules and he or she starts to work
with a revenge trading method, which is actually
not the right style of trading. But keeping ourself
away after the losses for a while will give us
a fresh mindset and planning again later to do
trade in stock market.
5.Psychology Control:Here I wand to add one more
thing that is the control of psychological aspects
in stock market. As I have discussed in earlier
post that emotion is very dangerous for trader and
it can burn our trading account very quickly if we don't
have a proper solution of its control. The main problem
is that emotion can lead to so many mistakes and
problems like greed, fear,aggresive trading, ignorance
of trading rules, etc. It can make trader blind and
make him or her worst any time here.So according
to me when we doing trading in stock market then
its important to know that we have a good control
on our emotions or not, and if we don't have than
better to forget about the earning first, and first
we should start to know and learn that how can
we control our trading psychogy in stock market.
12.How to Become a Successful Trader?
Well There is no proper answer for this
that how to become a successful trader
in stock market, but according to my
experience its depend upon our experience,
learning, practice, correction, dedication which
can make us successful trader in forex. There
are so many imporatnt factors upon which this
totally depend upon that which kind of trader
we are right now in this business. Some of them
I have already discussed above. But the main
point could be the understanding of the market.
Frankly speaking in first 4,5 years I have a very
bad experience in my life and I was feeling that
I was one of the bad trader on this earth, but
when I have started to learn things correctly
then I come to know that trading can become
easy for me if I have couple of good things in
my trading. Now I would like to discuss those
points with you they are as follows:
1.Trading Mindset:Or I can say that the
psychology control. This is really very
important to adopt the right psychology
in our business. You all can search about
it and read everywhere on the net that 80%
success come from the control of our
mindset. Shocked?
Yeah this is really true that if a trader
good trading mindset it mean he or she
have grabbed that 70% success already
in this business.Because by controlling
our psychology there will be no problem
of wrong management, fear, greed,
emotions etc in our trading.
2.Good management:A good use of risk
managemenr and money management are
also so much important to maintain a good
level of accuracy of earnings in our trading
account. You can see that when we don't
have the right management then most of
time risk can go higher and 99% of time
we have losses in account. But a good
management can lead to the margin money
and it can reduce the big loss in account
3.Strategy:Here is the last thing Our trading
strategy, 20% success is also depend upon
our trading strategy if we don't have a good
trading strategy then so many things can go
wrong. Like wrong entry and exit points, wrong
trading analysis, Regular losses and higher
drawdown etc. Using a good trading strategy
is really important to make a good use of
trading patterns in stock market.
Now this is the time TO Share my Personal
trading strategy with all of you.Actually
these trading strategies are suitable for
all kind of trading sectors and platforms
you can use them in big stocks, penny stocks
forex trading market etc. I am sure
that most of you don't have any idea of these
strartegies because they are the hidden
ones and only a few percentage of traders
know about these strategies.I am working
with some of these strategies and getting
good success rate in my trading account
so far, last 2,3 year's I have a good consis
-tent gains in my account from these
strategies. Lets start to discuss some
of them.
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