Trading strategy in the stock market

Speculative strategy
Before entering the market must be aware of, "whether you are facing the threat" could erode your money private "and that mistakes could be repeated because you're essentially" do not know how to draw a lesson from the first error, Besides the methods of speculation there are errors speculation that you may incur toll significant losses or bar you from a good profit , so always remember that the strategy of speculation based on the main themes are:

- Stock prices move according to the pressures of buying and selling in the market.
- Any information you receive Samuha always either the source or the interest of his ignorance. - Monitoring developments eternal vigilance. - Avoid the herd in the theory of speculation. - Do not trust a stockbroker and a little experience in the stock market.
- When you sell the shares do not look only to the sale price and when you purchase does not think only of the purchase price.
- No conflict on the troubled companies only if the general climate of good and low prices compared to book value, and implementation at a large stake.
- No news on the conflict known in the community market.
- Buy on the rumor market (strong) and sell at the announcement of the news.
- Do not sell and buy at the announcement of unexpected news in the media market.
- When news of the Declaration of greater than market expectations (immediately) is the oldest on the sale or purchase.
- No progress on the purchase of an immediate landing at the market.
- No progress on the sale of instant when the market rises.
- No progress on the sale or purchase in the event of a change to the market value in the neighborhood of 7%, but wait until you are sure of the movement of the arrow.
- Does not believe that large presentations or requests significant evidence of imminent action to share in the direction of your prospect, but watched the arrow and see to the execution (if execution was great and the price remains constant, it processes the recycling and clear, but if you notice a move positively or negatively on the stock with the implementation of the large It is an indicator of the real operations.
- Does not believe that the market is always rising or always in the descent, but that volatility has the best features of the stock market.
Discharges and to share a particular assembly
- Must focus on a particular stock to know it and follow these steps.
- Should be noted, deals that are in stock .. And ask yourself this important question: Is the deal had been at the request or offer price?
If the price of the application: this means that the transaction (disposal) and the sale on the stock, and these singular moments of speculators on the stock. You should not enter into the stock. Because you will get it at a lower price after the minutes.
If you are at a preview: it means that the transaction (purchase) and a compilation on the stock, which is a collection of moments of speculators on the stock. And you'll engage with them in the stock and going out with them .. But you must come out of the stock immediately if many deals then at the demand (and this signal going out with them) and this rule applied successfully by 90%


The most important point in the subject, to walk with the knees and not reversed.
"We must Twqlm yourself to make your transactions go with the trend of the market and not vice versa, you can not stand in front of a train coming very rapidly and tell him stop .. Should go in the other direction and you will only crushes and goes on his way. "

Vtaatbaky the process of calculating the loss could be incurred. And accepted, the process of reaping the profits! One of them after making a profit almost 30% in his first entry in the stock market, out of the market profits. After a while, entered the market again, and the deployment of funds among different stocks. The index reached a peak, and has certainly not less than 50% profit. But he has not reaped the profits. Now, with the strong fall of the shares, I think that the profits amounted to only 25%.
Why greed? Why not be profit taking immediately before the decline in stocks to the bottom?



Timely trading

How do you know the appropriate time?
First you must know: what affects the stock market in the long term? The answer lies in two words only (psychological factors) the fear and greed. In addition to news and rumors Fear leads to waves of selling shares, leading to the decline of the market and greed lead to waves of buying shares, thus increasing the market index.
Speculation and to achieve quick wins
Be very easy when you learn how to literally committed technical analysis and not subject to the psychological impact. Technical analysis will tell you how do you know the proper timing and you will know the signs of the sale or purchase of these signals appear to periods prior to the event is too short as it is to know these signs you should be the timing of your transactions are accurate and amazingly so that you can achieve the maximum profit possible.

Before you any process that must know what the market will do tomorrow; it will rise to buy today? To reduce or delay the procurement process? It is obvious that you want to buy at a low price and selling at a high price.

It is well known that the best time to buy is when the market index may experience declines in a row for several days or weeks so that may limit reached, which suggests that it is ready to rise as a result of a sense of dealers that prices had reached very low levels has come the time of purchase, and this limit is called your (bottom) in the dictionary of financial analysts.
What are the indicators or signs that suggest that the market has reached bottom?

First: a new low for the index as well as trading volume is low.
Second: when there is sadness, grief and pessimism among traders and expect a further decline.
Third: When the index near the bottom of the barrier already a major index that has historically reached and then reversed to the top, and you can see from the charts or, as Balhart of the index.
Fourth: Try the index rise by 1% or more, and certain trading volume significantly more than the day before.
Fifth: The onset of economic data is positive spark the market again.
When you receive all of these directories, be prepared for the start of procurement at the third or fourth day of the start of the market to rise on the bottom do not start on the first day so as not to be fooled by false elevation.
Why buy?
Does not abide by an arrow particular, but to see more sectors declined due to lower market and then from within the same sector to see more industries decline and then buy more shares drop due to lower market and not because of problems with the stock itself, it is known that most of the shares decline as a result of market pressure is the most increase at higher market. Shares of leading technology companies known for the strong performance of sales and profits is the first and surest of others, when the market rises.
Now that you buy you have completed 50% of the problem and the remaining 50% of the problem is the timing of the sale.
When to sell?
When you reach the value of the share to the price at which analysts believe it has become expensive and there is no rush to buy it through the graph (chart (up to a level known as the level of the upper barrier, also called resistance, a reduction that has already been reached by the stock price by, and reflected direction to the bottom, and at the same time there is a decrease in the size of the volume traded of the stock.
At the same time you are working on the timing of sales during the watchlist for the performance of the stock price should keep your focus on the performance of the market in general as well. May occur a sudden drop of your stock market index, while not up to the point of sale and thereby lowers the value of your stock from the market before it sells.

When the index drops?
When it reaches the market index to a level previously historically accessible then reversed to the bottom, and this level is called resistance, or up to a new level of height never reached before, and here we must be very careful as the market will do what is called a correction of prices in general so that paid for the sudden decline. This is the level at which a market begin the debugging process is called the summit.
What are the signs or signals to reach the summit, which will then begin the process of debugging and modifying the path of prices to bottom? First: access to a new level never reached before and at the same time there is an increase in the size of the traded volume of shares while the index rises by weak.
Second: when there is excessive optimism and greed of dealers and expect further increases.
Third: the onset of economic data is negative, which raises the fear and panic dealers.
IV: When all of these directories, be prepared for the sale and very quickly because the top of the market does not continue for more than a day or two.
Why in the event that the stock price dropped dramatically contrary to expectations?
In this case must be informed in advance by the loss can be borne, In general, if the stock fell by 7-8% for a purchase price of the sale immediately do not wait more than you can compensate for later in your operations to come, and must be Twqlm yourself to make your transactions moving with the direction of the market and not vice versa, you can not stand in front of a train coming very rapidly and tell him stop .. Should go in the other direction and you will only crushes and goes on his way.
At the same time you must know in advance what is the percentage of profit that is satisfied by, In general is a high 25% of the purchase price suitable for sale in case you do not know when will depend on the price rise.
The correct timing for the sale or purchase by the knowledge of the timing of the summit the market or the hall is 50% of the sale or purchase successful and profitable, but this does not mean you can not make a profit are excellent during the period between the top of the market hall, where enough to identify the levels previously for the index has historically that reversed then either up or down, so that procurement is at levels which will then be a reflection of the cursor to the top and sell at levels that will then be a reflection of the pointer to the bottom.
The remaining 50% of the timing of the purchase or sale depends on you personally and for your efforts and your perseverance and your efforts to get the information helpful, and the extent of your patience and your commitment to deep process of timing away from the control of psychological factors to take your decisions and your commitment to a clear strategy to fight the market, but were not a wolf lost your money.
Any financial market is not free from speculation to register strong gains in large and fast in light of economic and political variables, multiple, and may agree that the methods of many speculators not endless, but there are methods known in the market among them what is legitimate and some are misleading.


Misleading methods
* Recycling of large amounts of a company in order to mislead traders to force them to sell or enter in the purchase of an ill-considered.
* Applications strong "instantaneous" in failing companies without a real reason to motivate the new prices for the disposal of its shares.
* Rumor broadcast by the "large speculators" in the trading halls to achieve goals, either in buying or selling preferred shares in troubled companies, usually have their origin "is unclear."
* Offers "strong" companies to install the excellent prices for a long time for the purpose of collecting as much as possible before the issuance of stimulating news.
* Exploiting the system of "trading" in the case of the pre-opening prices are determined to impose on traders.
* The use of multiple names to mislead the market.
Legitimate methods
* Participation of the investor to buy or sell based on market mechanism.
* To engage in preferred shares and gains a good building exaggerated in the evaluation of market information is correct.
* Take advantage of quick decisions in light of news a surprise.
* Take advantage of the rule of "falling ball" according to Newton's third law (every action has a reaction equal in force and opposite him in the direction).
* Benefit from the forces of support and price barriers

The safe way to Speculation

It is very important that you put a clear strategy in all matters, especially in the world of stocks, it is very important to know who you are and why are you here?
If you're an investor you will not worry about what I will refer to in this topic ...
If you find bats may benefit from Shea, Sala given me and you well ...
There are some points that should be my brother, you might stop them, namely:
First: Stay away from emotions and passion in your decisions. Second: do not make speculative process, become the process of addiction (Valosv that some people become addicted to it buys and sells to buys and sells only) Thirdly: There does not covet covet covet not. Fourth: Know the tools that help you make decisions (technical analysis, and special programs in the analysis). It is not wrong to learn, but it is to remain ignorant He did not create the human world ...
All of the above words of my mind, Flanoti steps of the process with some examples:
Let us suppose that your child 100 000 hundred thousand, and want to conflict with ...
1 - the sum into three parts (100000 / 3 = 33 333) Now we have three sections, each section 33 333 Sections will Ndharb Bahma, and the third liquidity to avoid the comments, God forbid.
2 - before entering the market watched companies closely and try to Tqra indicators for the night, and select the five companies (preferably choose companies from different sectors, services and industrial, for example), and write your notes, which findings regarding the Gariatk each company.
3 - focused on support and resistance points for your partnership.
4 - at the start of trading preferred to wait and monitor your company for a period of not less than half an hour and monitor the quantities of supply and demand for all five companies and the path of each share.
- If the deals are done on the stock in large quantities and a piece of the first resistance point strongly, trust in God and enter in the stock - If a piece of point support large quantities also recommend that you wait until you see that the stock is disease relapse in large quantities and break points of resistance that Asubhp point support and engage in the stock - Select the target price, but 2% of the share price and put a sell order - Example of the arrow that we decided to enter the price of 250 (divide the amount of two hundred and fifty 33333/250 = 133 shares), multiply the value of the share in the ratio that we want a 2% 250 * 0.02 = 5 if we put a sell order of 255
And follow the process with the rise and down to share with a focus on support and resistance.



learn how to invest in the stock market

So anyone who wants to enter in the stock market does not know how to start let us learn how to invest in the stock market. First: you must register yourself in the stock market and the work of Lockwood to you by one brokerage companies, which will deal with it. Second: We must study the market well and find out which company will buy shares and whether the company achieve profits or losses. Third: After you select a stock is purchased by the stock broker and is registered in the MCSD is the work of a statement of account to do so.
Here are some tips before dealing in the stock market: Never do not keep the price down arrow just to get the coupon. • Human nature is always at odds with a successful investor • When you hear that everyone buying a particular share, remember that there are others who sell as well .. • Companies that buy back shares from the market, there is a positive impact on the share price. • Be careful of companies that hold a general assembly at inappropriate times and in places far away. • Companies that achieve Nmussenoy rate higher than 50%, will not be able to maintain it forever .. • Most Almstmtherin do not learn from past mistakes • better to pay a fair price for the shares good company instead of Tddf price cheap shares in a company losing money. • You can even create wealth over the long term and do not be Mstmther rackets • Thumper only when you the possibility of loss. • capital markets always reflect the trend. • the stock market two-way street • the rate of low inflation, low interest rate, the resulting capital market is strong. • You can not control the market, but you can control your reaction towards him. • When unemployment rises bought the shares, and sell it when it drops. • eye always on the company and not the arrow. • time the most important tools a successful investor • If you are an investor earned money, if you lose money you are rackets • market down about 50% and climb some 50% market is bearish about 25% .. • emerging market does not have the resistance .. The bearish market has no support .. • Successful investors have the courage to buy when others sell, and sell when others buy. • When debugging, the direction of the market to fall much more than the trend for the rise. • Do not buy a stock just because the price is low does not sell just because the price is high. • shares of small companies are moving faster than the stocks of large companies up and down. • When three or more employees of the purchased shares from the market Vatbahm. • When you bought the rumor and sell when you see the news • The time friend of an enemy arrow Sindh • Do not buy the shares does not rise with rising market • Stay with the trend and not against it • emerging market does not have a point of resistance, and the market does not have a bearish point of support • Sell when others buy and buy when others sell • You must be a list of your expectations on the basis of fact • Do not let your emotions control your mind • Set your goals are before your eyes • Do not rush behind market rumors or tips that you do not understand 

Points and ways to correct Speculation

First: to the spec right in the market depends on the possibilities of speculative in terms of both the size of invested capital, and in terms of knowledge tools used in technical analysis, as well as sources, which fills us with news and information for companies and which must be correct and to some extent, both are hard to play an important role in making the right decision.
It is essential for people to know and read indicators and determine the movement and direction of the arrow, and select the target prices
Second: Choose the right stocks for speculation.
The most important of these properties as follows: -
1 - The daily trading volume on the stock is high, we must note, or compare the share price with trading volume. 2 - a high degree of beta in the stock (relative measure of the sensitivity of earnings per share to the market return) whenever it is larger than 1 whenever the link to the stock market positively, the greater the degree of beta in the stock elevated greater the degree of fluctuation of the stock is great, this gives the chances of selling and buying because the difference in the share price to be significant.
Beta for a stock = (dividends ÷ closing price) × 100
Third: Select a speculation, "Whenever we have a way Oostratejih clear whenever the result is good.
Fourth: cofactors of the bats are getting their news from sources and as soon as possible as they have a significant effect on the movement of the markets and stock up or down.
V.: Some methods used in the spec:
1 - to seize opportunities in companies that advertise a good win more than expected. 2 - speculation in companies subject to bankruptcy, many investors prefer these companies, but these companies need to be a person with good experience, be familiar with the market, but work in these companies has many conditions, and most important of these conditions: -
- Non Swap arrow (out) whatever the case, is intended to be cash money before the end of the trading period. - Do not enter in the stock capital of a large (preferably between 10% to 20% of the capital). - Note the movement of the share, ie, when there is a rise in trading volume with a rise in share value - Trying to repeat the operations more than once a day with non-greed and haste with Alaktqa reasonable profit between 0.5 to 1 SR according to the value per share (the lower the share price less profit required) BAS reconciled to God


Technical Analysis Tools

There are a number of technical analysis tools that help Almsttmrfb to do various tasks to determine the reflection signals
In the direction of the market or share price. These tools include - trendlines - support and resistance - Models Price -
Moving averages.

The definition of trend lines
Upward trend is a series of peaks and bottoms in an upward direction

Downward trend is a series of peaks and bottoms in a downward trend

Horizontal direction is a set of peaks and bottoms in Wagah Horizontal



Tools to succeed in the stock market

To succeed in any kind of trade you should examine this area very well and know the strengths And points of weakness. Stock market or what is known as the Stock Exchange is one of those types that you should know a lot Them before entering them. The stock market became the assistant provides an income for many people who are in need of money to cover expenses Daily living and others to spare them his money as an investment to ensure long-term future. The most important things that will help you stock of venture is to learn the technical analysis of financial markets. I have read many books in this area and you collect the most important information, pictures, and put it in my blog for the benefit of anyone who wants to enter this field and can be your reference to learn the trading in the stock market

The definition of Technical Analysis

 Financial markets rely heavily on charts to inform investors of the changes that you know Stock price movements. Technical analysis is the study of market movement mode via graphs to predict trends Saralamstqublip.
 Standards Technical Analysis

Technical analysis is built on 3 different scales.

1 - the market settled everything

2 - trends of price movement

 3 - History repeats itself
* Movement of the market settled everything

Must know the investor in financial markets that anything can influence the Sarineks in fact On the price of general market, whether technical analysis or political events or psychological.
      * Directions of the price
Sarhi direction of movement of the most important thing for the investor to focus on it so that the price trend is divided into 3 sections Ascending - Horizontal - Descending and because the goal of making the movement of share price to determine trends in the future The purpose of trading on the basis of those trends.
     * History repeats itself
In order to know the objectives of the movement of future market, you must study the market in the sense that the past models Formed in the graph, which have been identified and categorized hundreds of Sunnis in the past is nothing but pictures Repeatedly reveal the psychology of the market's direction either ascending or descending or horizontal.



History of stock market

History of stock market trading in the United States can be traced back to over 200 years ago. Historically, The colonial government decided to finance the war by selling bonds, government notes promising to pay out at profit at a later date. Around the same time private banks began to raise money by issuing stocks, or shares of the company to raise their own money. This was a new market, and a new form of investing money, and a great scheme for the rich to get richer. A little futher on the history tumeline, more specifically in 1792, a meeting of twenty four large merchants resulted into a creation of a market known as the New York Stock Exchange(NYSE). At the meeting, the merchants agreed to meet daily on Wall Street to daily trade stocks and bonds.

Further in history, in the mid-1800s, United States was experiencing rapid growth. Companies needed funds to assist in expansion required to meet the new demand. Companies also realized that investors would be interested in buying stock, partial ownership in the company. History has shown that stocks have facilitated the expansion of the companies and the great potential of the recently founded stock market was becoming increasingly apparent to both the investors and the companies.

By 1900, millions of dollars worth of stocks were traded on the street market. In 1921, after twenty years of street trading, the stock market moved indoors.

History brought us the Industrial Revolution, which also played a role in changing the face of the stock market. New form of investing began to emerge when people started to realize that profits could be made by re-selling the stock to others who saw value in a company. This was the beginning of the secondary market, known also as the speculators market. This market was more volatile than before, because it was now fueled by highly subjective speculation about the company’s future.

This was the pretext for appearance of such stock market giants as NYSE. History books tell us that the reason the NYSE is so highly regarded among stock markets was primarily because they only trade in the very large and well-established companies. It acted as a more stable investment alternative, for people interested in throwing their capital into the stock market arena. The smaller companies making up the stock market formed into what eventually became the American Stock Exchange (AMEX). Contrary to the 80-year old history, today the NYSE, AMEX, NASDAQ and hundreds of other exchange markets make a significant contribution to the national and global economy.

The growth in the number of market participants led the government to decide that more regulation of the stock market was needed to protect those investing in stock. History was made in 1934, when following the Great Crash, Congress passed the Securities and Exchange Act. This act formed the Securities and Exchange Commission (SEC), which, through the rules set out by the act and succeeding amendments, regulates American stock market trading with the help of the exchanges. It also includes overseeing the requirements for a company to issue stock shares to the public and ensures that the company offers relevant information to potential investors. The SEC also oversees the daily actions of market exchanges and how they trade the securities offered.

Although historically, investing in stocks was a “hobby” for the rich, an average person too soon came to realize the value of the investing in stocks vs. traditional assets like land or a house.