We can’t time the markets!
We can’t never time the markets right, we need to know the trends earlier but it’s not possible. It’s never good to book profits in bulk, keep half for later and another half for another day. The same with buying, don’t buy in bulk and you can’t control your greediness and fear. Never buy at the market price and it’s not proper trading, buy at a low price and sell at high price. Wait for the price to come and wait patiently.
There is an option “trailing stop-loss” which saves your time and don’t invest more than 30 percent of your savings with stocks. Because it’s a high risk and high return instrument, where people want to quickly make money. Compare the news with the price action. If you missed buying at the low price, the next buy is only above the resistance and only sell below the support.
Most traders buy only if they have long term value or immediate value. People love money and they want it immediately or in the future. You need to know about the news and money management skills as well. Never exit in lots, when the price spikes there is no need to rush to sell in a hurry. Wait for the right price and no target can be set for your holding. Sell it when it reaches the price, its trading with the flow.
Trading with the flow can sometimes go against you and trailing stop-loss is what you must try to use in all trades. Wait for the price to buy and wait for the price to sell. you need to make at-least 3 percent daily and thats your daily goal. Only if you practice enough you will make profitable trades. What decides the emotion of the traders??
- News that creates the fear and greed
- Levels that are support and resistance
You must have the knowledge of finding whether a stock would recover from the low point or break further. you must know whether the resistance will sustain or broken easily? these are the basics of stock trading and it takes time to learn. Learn from my e-book 2ideas4stocks to get the profitable chart pattern to trade stocks daily