Volume#3
"Investigate before you invest" is a good start but it is even more important "to investigate after you invest" to ensure your sucess in trading or investing in the stock markets.
Think about it….
Obviously, a stock is worth only what investors are willing to pay for it.
Some of the affecting factors may be...
Why technical analysis is working?
How can you find such an edge in the stock market?
Information about a company, its industry and the economy are valuable
on your finger tips on the Internet.
But knowledge of the stock's chart actions, and familiarity with chart patterns,
certainly will help investors decide when to buy and when to sell.
Why you want to be a visual trader.
How to spot a Trend Line and benefit from it.
Market Tactics you may take.
Pay attention to the unusual volume.
Profits from the head and shoulder formation.
Profit from the Double Top and Bottom formation.
An answer to the following questions will minimise your risk.
** Did the price decline about 5% or more from
the first peak?
** Was there unusual volume around the first peak?
**Does the chart history of the stock designate this area
as a likely mayor turning point?
For example, long range support or resistance is to be
expected or have major trend line been broken.
**Is the general market in a down trend or at least neutral?
How you can profit from this dream price pattern---line or saucer formation.
Benefit from the sudden change-the V or inverted V formation around the pivotal point.
You must have a plan of action
Your plan might be devised out of the answer of the following questions...
Any plan is better than no plan
Also, investment plan is highly personal thing. You must know your own weakness and strengths and adapt a plan that are not only meets your need but also is one you can live with.
Aside from your own foibles, your financial condition, the amount of time you can devote to the market and your experience are important in devising an investment program.
