Investing in stocks such as company shares, gold, crude oil,
silver and so on could earn you a great
deal of money, ultimately turning you into a millionaire. Yes, you read right; you
can become rich by simply trading stocks. However, trading stocks isn't a
"get-rich-quick" scheme. You must devote time to study the stock
markets, develop the right skills and have some level of confidence; therefore,
getting rich through this means is possible.
You may be a swing or position trader, however, the goal is maximizing profit.
Tips To Employ During Stock Trading In Order To Maximize Profit
· Use a Technical Indicator that works for you
Trading stocks without a technical indicator is risky, however, not knowing what indicator works for you is more risky. Common technical indicators ( which could be leading or lagging) include the Moving Averages, the Relative Strength Index, the Ichumuku clouds, M.A.C.D. and more. Take time to study which indicator works for you and when to enter into a trade or exit a trade. This way, profit is maximized.
· Learn to trade with the Market Trend
If the market or industry to which a particular stock belongs is moving up, always trade a stock whose chart pattern has an upward breakout. Avoid countertrend trading; that is, the market or industry is trending down and your stock is trending up. Avoid countertrend trading to maximize profit.
· Before trading a stock, switch to the Intraday Trading Scale
As a swing or position trader, learn to switch to the intraday scale or the next shorter period before buying or selling a stock. Using a shorter time scale tends to highlight the support and resistance zone, giving you a pointer to where you can achieve greater profit.
· Ignore "Noises" from chat rooms
Several stock traders say some of the worst trades they've made are from scenario trading. Author of Encyclopedia of Chart Patterns, Thomas Bulkowski, said, "I'd read that the price of oil was predicted to rise due to production shortage, I bought a refiner and got cleaned out when the price decline instead." The trick is to ignore the noise and be confident.
· Control your emotions
Don't trade stocks when upset, obey your trading signals and learn from your mistakes.
Apply these tips when trading your stock and you'd gradually become rich.