Answered You can hire a professional tutor to get the answer.

QUESTION

You will prepare and submit a term paper on Main Principles Of The Stock Market Trading. Your paper should be a minimum of 1750 words in length.

You will prepare and submit a term paper on Main Principles Of The Stock Market Trading. Your paper should be a minimum of 1750 words in length. Every market or stock that goes up will go down and most markets or stocks that have gone down will go up. The more extreme the move up or down, the more extreme the movement in the opposite direction once the trend changes. This is also known as "the trend always changes the rule."

If you are looking for "reasons" that stocks or markets make large directional moves, you will probably never know for certain. Since we are dealing with the perception of markets-not necessary reality, you are wasting your time looking for the many reasons markets move.

A huge mistake most investors make is assuming that stock markets are rational or that they are capable of ascertaining why markets do anything. To make a profit trading, it is only necessary to know that markets are moving - not why they are moving. Stock market winners only care about direction and duration, while market losers are obsessed with the whys.

Stock markets generally move in advance of news or supportive fundamentals - sometimes months in advance. If you wait to invest until it is totally clear to you why a stock or a market is moving, you have to assume that others have done the same thing and you may be too late.

You need to get positioned before the largest directional trend move takes place. The market reaction to good or bad news in a bull market will be positive more often than not. The market reaction to good or bad news in a bear market will be negative more often than not.

The trend is your friend. Since the trend is the basis of all profit, we need long term trends to make sizeable money. The key is to know when to get aboard a trend and stick with it for a long period of time to maximize profits. Contrary to the short term perspective of most investors today, all the big money is made by catching large market moves - not by day trading or short term stock investing.

Show more
LEARN MORE EFFECTIVELY AND GET BETTER GRADES!
Ask a Question