make money with stock market

1. Find a stock This is the most clear and hardest step in stock market trading. With well over ten thousand stocks to trade a good rough rule to think about is time of the year. As an example, as I write this, it's the start of spring. It might seem clever to consider stocks that historically make runs, or slide if you're bearish, in this time of the year.

2. Fundamental Analysis Many short term traders may disagree with the need to do ANY Fundamental Analysis, however knowing the chart patterns from the past and the news regarding the stock is relevant. An example would be earnings season. If you are planning on playing a stock to the upside that has missed its earnings target the last 3 quarters, caution could be in order.

3. Technical research This is the bit where signals come in. Stochastics, the MACD, volume, moving averages, RSI, CCI, support levels, resistance levels and all of the rest. The heap of signals you select, whether lagging or leading, may rely on where you get your education. Make it simple when first starting, using too many signals at the beginning is a ticket to the land of enormous losses. Get exceedingly comfortable using 1 or 2 signals first. Learn their complexities and you may be certain to make better trades.

4. Follow your picks After you've placed 1 or 2 stock trades you ought to be handling them correctly. If the trade is supposed to be a short term trade watch it closely for your exit signal. If it is a swing trade, watch for the signals that tell you the trend is shifting. If it is a long-term trade don't forget to set monthly or weekly checkups on the stock. Use this time to stay up with the news, identify your price targets, set stop losses, and keep a watch on other stocks that you might want to own too.

5. The massive picture As the old chestnut goes, all ships rise and fall with the tide. Knowing which sectors are heating up stacks the chips in your favour. As an example, if you're long ( expecting price to go up ) on an oil stock and the majority of the oil sector is rising then much more likely than not you are on the right side of the trade. A few dealing systems will give you access to sector-wide info so you can get the education you want.