How to earn big money in the stock market
The average investor is generally satisfied with their return on their money by 10% to 15% if their stock returns more than 20% per annum. However, if you are told how to make big money in the stock market every day, not just every year? It will be exciting. You can, but this is not so easy. People who earn big returns are day traders or short-term investors. They search for stocks falling, buy low, or look for stocks ready to break through the increase. Once back to the average price or up, they sell, but they do it once a day or at least once a week.
If you choose any stock and view the closing price, it will usually tell the stock the highs and lows of the day. All day traders are looking for stocks, repeating patterns, and setting limit orders to buy at low points. Once they put the order in place, they wait. Limit order is only an order, "I will buy shares of X dollars, but will not pay more. When the stock reaches the price, the limit order will be based on your set or lower prices, if the broker Once you have a stock, check the cap on the model and set a limit order for your stock. Automatically executed at that price. Looks like the stock is trading down. The key is to find the kind of behavior of the stock.
Still ask: "The answer is not to buy them. Larger blue-chip companies tend to be safer, except for rare cases where stocks like Enron are fooled even by experts. In fact, they are safe, which means they are not as unstable as small companies. You want volatility, but predictable volatility if you want to make big money in the stock market. The higher the risk, the higher the reward. You need to select stocks that move up and down in one pattern every day, or at least 10% to 20% of the curve per week. These are usually smaller stocks, when the stock moves a few pennies, gaining a large percentage of the gains or losses.
The big money market does not mean you have to invest a lot of money. Even for smaller investors, cheap stocks are affordable. If you buy a stock of 10 cents, it gets only a penny and you do a 10% deal. When you repeat this process using your original investment and profits, then profits grow exponentially, and you see a lot of money in the stock market you often hear. Since stocks do not always behave the way they behave, it is always wise to cut your earnings by half, at least at the outset, so you have the money if the stock is sour.
Finding stocks that behave in this way is not easy, but no one says it will. If this is easy, everyone will do it. You have to learn the market, find stocks, observe their behavior patterns. You have to learn to read graph indicators and learn how they work, or you need a stock service or a computer program to do the job for you.