How to legally cut the stock market through intelligent and prudent stock trading
The share purchase of the stock market is indeed a venture business is not a secret. But the difference is going to the casino and putting everything in red. Profits from stock market transactions will be the result of a careful measurement of risk arising from the analysis and evaluation of the company's stock.
Avoid investing all the eggs in one basket.
To avoid investing all the eggs in one basket. Divide the available trading funds into 10 parts and ensure that each transaction is limited to that particular amount.
Stock Exchanges are not brain surgery. Magic is all benefit from the stock movement pattern. Even if, at times, the reason why stock prices rise or fall is not obvious, it is sometimes quite obvious, and, to a large extent, stocks are expected to move in a particular direction. This is the case when a transaction is overbought or oversold. Of course, the key is to identify overbought and oversold stocks, and accurately predict when to start adjusting for the fair value.
Strong financial accounts
Legal public companies are required to publish and announce their financial accounts at the end of each period. These can be found on the company's website or on the stock exchange's official website. Through a quick overview, a quick look at how companies can increase or decrease year-over-year revenue and profits.
Looking for steady growth for at least three years. When the company is losing money, what is the reason? When can profit again? Will there be fixed costs or will it be consistent with income? Does the organization have sufficient funds in financial institutions, or does it need to be reissued in short time (through stock issuance or new bank loans)?
In short, keep your stock trading plan easy and keep the system running. Consistent with all aspects of the plan, this will help risk management and improve the profitability of the equity portfolio. Fine records will determine whether the trading plan includes favorable expectations, or if some changes can ensure that the stock trading account can generate more profits. Law