market. However, there are some who regularly make money consistently
at trading. The key to their success is making decisions to buy and
sell without being influenced by the stock market fears and greed
displayed by the masses.
Fear of losing money in the falling stock market and, therefore,
selling their valuable portfolio short, or greedily rushing to buy
when a stock is going up is the normal psychology of the masses. Both
these methods can display spectacular gains or dramatic losses. Though
this is a normal practice and logical too, the stock market experts
trade differently! Practice and careful analysis have made them
experts in the field of investing. Moreover, this practice and
analysis has also helped them overcome fear and greed - the two evils
of trading.
To emulate the experts, one can find plenty of trading tools on the
internet. There are many online trading systems that allow you to
practice stock market trading without risking real money. This way,
you can also practice to keep your emotions under check! These tools
help you in choosing stocks according to the market trend in real
time, and also help in analysis of the technicalities of the stock
market by studying the various patterns and charts of the stock.
Various books are available to study the trends and learn the best
entry and exit points. This system of practicing the stock market
trading is also called real-time virtual trading. This system helps in
learning the market in real time and can take weeks or months to
evaluate your "trade" was fruitful or not.
The faster way to learn trading is by using the historical data and
available historical charts. Comparing the historical charts of the
stocks and the overall market trends at key points will teach you the
behavior of the stock against the overall trend at any given time.
Using good analytical and charting software, you can use the charts
and learn the various theories. You can also hide the forward bars and
try and predict how the particular stock behaved. You can also compare
many other stocks' behavior during that time and do deeper analysis.
You can even check your emotions by pretending that you own a sizable
position in the stock and then monitor your feelings at the highs and
the lows of "your" stock, and whether you were able to control your
emotions!
This way, you can educate yourself without risking real money. All
these helps in overcoming fear and greed, and practice emotionless
trading -- the way the experts trade!
The experts also focus on the present indications of the stock and
concentrate on understanding what the stock is "doing" at the present
moment, rather than worrying about its future course. They evaluate
and reevaluate the current situation and get to a point in deciding
whether to sell, hold, or buy that particular stock at that particular
moment. The analysis also helps them learn what other important stocks
are doing at that time. They continually ask themselves on how to
minimize the losses, if any, or how to lock in gains, or whether to
place a limit order, or exit with a profit, or even a small loss.
Experts are dynamically thinking about other stocks too.
These stock market trading tools help you calm your nerves with
virtual trading without risking real money, helps your decision making
while simultaneously building your technical skills for the future
stock exchange trading.
Explore your hobbies and interests. Click here to begin.
No comments:
Post a Comment