The stock market is seen by many as an orchestrated playground for the people who have inside information and not a place for people with small pockets. It seems impossible to know when to buy stocks when it’s hard to tell when corporate CEO’s are taking advantage of stock investments. Despite what some may think it is simple to be “in the know”. In class, professors would teach that statistics and economics are as random as the stock market. This leaves one to think, how can I really know what to do? Even though the stock market is random and may seem like pure chaos, there are patterns that are consistent as time goes by. Like at the peak of any sale at a reputable store with huge discounts, some if not most products are sold out while others are ignored on the shelves. Most of us can tell what popular products will be sold out. That is one consistent pattern in the buying chaos. In a similar way, this is how buying and selling works in the stock market.
When to Buy and Sell
A simple way to put it is to just go with the flow when you discover the trend when buying or selling stocks. Improving on this strategy will make you a lot of money like that of the fellow traders and professional investors. Don’t confuse the trading for profits with the trends investors seek. Investing is different because they observe the trend a product, company and or industry is taking. Meanwhile, stock trading for profits and income depends on watching the trends in stock price and predict the pattern it will take. Pattern prediction makes more money than simply buying and selling in the stock market, because buying and selling after listening to ten different opinions can yield very bad or good results. Trends are there for the taking, at your disposal, but remember patterns change and what may work now won’t necessarily be the same later.
There really are that many trends and patterns you can take advantage of all the time! But patterns shift and change, and what works now won’t work later.
How does the Stock Market Function?
To know this, you must first understand the stock market isn’t just one supreme entity. It comprises of people who battle for stuff and buy and sell to each other. People’s taste and desires change, so the trend will most certainly change depending on the level of demand. Influential individuals may influence the stock market heavily, setting a particular trend as do big investors, governments or other “Big Money” corporations who drive market trends. Even if one “Big Money” abandons the scene, another continues or changes the trend. Apple’s stock is an example of that which seems unstoppable on the market and to go against that trend may seem reckless, but Apple was not always a popular choice. This should explain that trends always change at some point and it’s just for you to study, predict and act on it.
Keep it Simple
By now you must wonder if it’s really that simple. YES! It is that easy and the stock market can only take one of three roads. It can either go up, down or remain around the same and it’s for you to know when to stop when you strongly feel things will take a turn. Now it’s only for you to find something else that works, and understand that you may only trade for an hour on the stock market like other traders depending on the pattern. Long term traders watch the calendar and how the stock market will perform as it relates to for example, Oil. Remember it’s all about making money and knowing when best to do so. Be careful to not misjudge a stock by jumping ship before its time or predicting that which doesn’t exist in the trend on the stock market. I have learned this step the hard way but it has molded my thinking for me to make a lot of money on the stock market. The simpler I kept my trades the better and if you still have problems figuring out the trends then follow our stock market resources which focus on how to do that.
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