how to play stock market

how to play stock market

Your clock... is ticking.

When you go on Twitter these days you will see lots of discussion about the stock market and everyone's opinion as to how game is played…

I like to think of the Stock Market Game as a battle between two opponents, sort of like Sherlock Holmes and Professor Moriaty in the latest Sherlock Holmes movie: A Game of Shadows.

"It's a game, dear man, a shadowy game. We're playing cat and mouse, the professor and I. Cloak and dagger."

ARE YOU SURE YOU WANT TO PLAY THIS GAME?

It's you against the world, (at least it seems that way) fighting to get your share of the pie within the Sea of Money out there. Buying and selling stock, making a living, just like "Gordon Gekko the Great" in the movie "Wall Street". You win some, you lose some… you have good and bad luck... It's like the 5th grade; no one likes a cry baby so when you lose, you've got to keep on fighting.

TODAY'S DAY TRADER

The idea of being an "at-home" trader is intoxicating.

No boss. No one to report to. No bureaucratic BS in your way. It's just you and your tried and true fail safe method of making a lot of money in a short period of time. And if you can do it, and put food on the table… then you're the man! Or Woman! And believe me, it can be done! People do it and make a good living at it.

A common strategy among Day traders-- "News Playing". The basic strategy is to buy a stock which has just announced good news, or short sell on bad news. Such events provide enormous volatility in a stock and therefore the greatest chance for quick profits (or losses).

COME NOW, YOU REALLY THINK YOU'RE THE ONLY ONE WHO CAN PLAY THIS GAME?

Determining whether news is "good" or "bad" must be determined by the price action of the stock, because the market reaction may not match the tone of the news itself. The most common cause for this is when rumors or estimates of the event (like those issued by market and industry analysts) were already circulated before the official release, and prices have already moved in anticipation--the news is already priced in the stock.

"HIS ADVANTAGE, MY INJURY. MY ADVANTAGE, HIS RAGE"

Once in a great while, a new technology comes along that helps to transform how people invest and trade in today's markets. But it's not the technology that wins the fight, it's a commonly misunderstand belief that the one with the better technology wins the war and is able to grab all the money.

Technology may give you an edge and advantage against your opponent, but it's the WILL to go the extra mile to exploit the disadvantage, to know yourself and to know your enemy, first and foremost, before the battle has even begun.

That is the key to any good battle, whether it is for love, money, power or position. It's knowing exactly how to play the stock market game independent of any technology, that's the juice that will make all the difference in the world.

IT'S THE FIGHT THAT COUNTS!

Screen Play of Sherlock Holmes movie: A Game of Shadows- End of Movie Fight Scene:

[analyzed fight]
Professor Moriaty: "Trap arm, target weakness. Follow with haymaker."
Sherlock Holmes: "Ah, there we find the boxing champion of Cambridge."
[Holmes throws a hook at Moriarty's face]
Professor Moriaty: "Competent, but predictable. Now, allow me to reply."
[Moriarty throws several punches at Holmes' shoulder]
Sherlock Holmes: "Arsenal running dry. Adjust strategy."
[Holmes tries to kick Moriarty but fails]
Professor Moriaty: "Wound taking its toll."
Sherlock Holmes: "As I feared. Injury makes defense untenable. Prognosis, increasingly negative."

[Moriarty corners Holmes against the edge of the cliff]
Professor Moriaty: "Let's not waste any more of one another's time. We both know how this ends."

Sherlock Holmes: "Conclusion: inevitable. Unless..."

Buy Low Sell High

About the Author

The Dividend Chaser is a tool that lets you to find stocks with above average Dividends. The "Too Easy" button is a tool that finds good stocks that are being affected by current events. http://www.stockmarketengine.com

source : - goarticles