make money by trading stocks
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http://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks Make Money by Trading Stocks All too many individuals jump into trading stocks, lose money and decide that it really was impossible to make money by trading stocks. They blame the big trading houses, the Federal Reserve, Tea Party Republicans or President Obama. They forget or are unaware of the old saying that, we have met the enemy and he is us! But, considering how many folks lose their trading capital and just walk away, can you really make money by trading stocks? You can if you pay attention and have a solid plan. Successful stock traders base their trades on a combination of fundamental and technical analysis. Fundamental analysis tells us what the eventual price of a stock will be. Technical analysis tells us how that stock is going to perform along the way to its eventual price and is commonly the way to make money by trading stocks. Anticipating the Future You can make money by trading stocks if you can see the future. But how do you see the future? In trading stocks this is called technical analysis. The basis of technical analysis is that history tends to repeat itself. For example, during the height of Babe Ruth’s baseball career one could safely predict that the Great Bambino would hit thirty or more home runs in a season. During the height of the Cold War one could safely predict that there would be at least one confrontation between the USA and the USSR during any given year. Well, it turns out that you can make money by trading stocks using the same sort of logic but simply different data. Technical analysis is based on price patterns. The sum total of information and trading sentiment goes into driving prices up and down. There are a variety of distinctive price patterns that essentially predict the future. This was recognized both by rice traders in Japan and tulip bulb traders in Holland hundreds of years ago. The Japanese system was formalized and is used today. It is called Japanese Candlestick trading as it is a visual system of signals that are superimposed on a trading chart. Make Money by Trading Stocks and Paying Attention If all you do is analyze fundamentals you can buy a stock or sell short and simply wait for the market to come to you. However, as you can see from most stock charts that the price of the a stock moves up and down a lot before it finds its eventual price...TRANSCRIPT
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
All too many individuals jump into trading stocks, lose money and decide that it really was impossible to make money by trading stocks.
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
They blame the big trading houses, the Federal Reserve, Tea Party Republicans or President Obama.
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Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
They forget or are unaware of the old saying that, we have met the enemy and he is us!
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
But, considering how many folks lose their trading capital and just walk away, can you really make money by trading stocks?
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
You can if you pay attention and have a solid plan. Successful stock traders base their trades on a combination of fundamental and technical analysis.
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
. Fundamental analysis tells us what the eventual price of a stock will be.
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
Technical analysis tells us how that stock is going to perform along the way to its eventual price and is commonly the way to make money by trading stocks.
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
Anticipating the Future
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
You can make money by trading stocks if you can see the future.
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
But how do you see the future?
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
In trading stocks this is called technical analysis.
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
The basis of technical analysis is that history tends to repeat itself.
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
For example, during the height of Babe Ruth’s baseball career one could safely predict that the Great Bambino would hit thirty or more home runs in a season.
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
During the height of the Cold War one could safely predict that there would be at least one confrontation between the USA and the USSR during any given year.
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
Well, it turns out that you can make money by trading stocks using the same sort of logic but simply different data.
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
Technical analysis is based on price patterns.
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
The sum total of information and trading sentiment goes into driving prices up and down.
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
There are a variety of distinctive price patterns that essentially predict the future.
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
This was recognized both by rice traders in Japan and tulip bulb traders in Holland hundreds of years ago.
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
The Japanese system was formalized and is used today.
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
It is called Japanese Candlestick trading as it is a visual system of signals that are superimposed on a trading chart.
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
Make Money by Trading Stocks and Paying Attention
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
If all you do is analyze fundamentals you can buy a stock or sell short and simply wait for the market to come to you.
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
However, as you can see from any stock chart, the price of the stock moves up and down a lot before it finds its eventual price.
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
It is certainly possible to make a few dollars using fundamental analysis.
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
But it is also possible to make money trading stocks by reading price patterns.
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
By doing so, a technical trader can make profits several times while the fundamental trader is waiting for the market to make its final move.
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
The point of technical trading is that you need to be there at your trade station, pay attention, always set your buy and sell stops and always get out of your trades before the end of the trading day.
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
This is the basis of day trading. There are numerous profitable day trading strategies such as range trading, scalping, and trend trading.
Byhttp://profitabletradingtips.com/trading-investing/make-money-by-trading-stocks
The point is to develop a strategy, edit your results and modify how you do things along the way in order to optimize profits.