Investing in share market alone does not generate great returns. Investing by following trends and timing the market does! Whether buying or selling, the important nissue is timing! You get literature and advice in abundance from the traditional analysts and researchers, articles on economic projections, news features and the ever-obligatory TV and news channels, who are out to chisel a bright future for you through your investments. The number of shares that are listed in various stock exchanges and the information that you get on them is mind-boggling. It is up to the intelligent investor to sieve the essential details from the non-essential heap of literature on shares! Successful market timers are also selective readers and try to understand where the market will go next.
The grass root reality is the price of the share! If it is trending higher, the market is up. If the reverse happens, the market is trending lower. Simple truth! But the difficult search!
The relentless news events relating to the market have capacity to sink the rational judgment of a trader by going one to take incorrect decisions. It is not easy to conquer the force of your emotions, when the carrot of profits is dangling in front of you. But one worms the stick wielded by the stock market, at the most unexpected moment. You regret your decision and deeply regret the losses. You sometimes need to follow the crowd, but not always. In a strong bull market, your all decisions may fetch you nothing but profits. But be extremely careful about the anticipation ahead. The danger is it may swallow all your profits, earned through various stages of tensions, over a period.
What is a stock market? You can compare it to a place where the pair of opposites functions! One type of investors is those who make emotional decisions, at the spur of the moment. They seem to apply thought to their investments, but actually do not, which they realize when it is too late and the damage is done. The other types of investors are waiting in the wings to receive the benefit accrued out of those who make emotional decisions. When one group sufferers losses, the other group has to make profits. So swings the pendulum of share market trade! Sullen faces versus the smiling faces at the end of the closing of the business hours of the day!
No use wondering why the price of the share is at a particular level. It is so, because it is so! It can not be otherwise! Accept this fact and work out the future strategies for investment. Many factors affect the price and sometimes it beats all your methodical calculations. It is incorrect belief that one makes profits when the prices of shares rise. Market timers, well-versed in identifying and following price trends have made huge profits during Declines. What is important is your ability to notice the trend change, and make your decision to buy or sell well in time. When the trends take off, as per your expectations, you have your best opportunity to make profits.
Trust the price and make your moves. Market analysis is mostly subjective and it varies as between two consultants. The opinions that you get through the news media are not of much controversy. You have to find the golden mean to take decisions and be an intelligent market-timer.
Follow your trading strategies with due respect. Honor every sell and buy signal. Small losses and large gains go hand in hand! Does it look strange? Never try to guess the trend, how far it will go. The rug under your feel will be pulled by the conditions of the market, even before you realize how this happened! Therefore, stay disciplined!