| The style of functioning of the share market can | | | | succeed in your efforts. |
| not be compressed within the set of fixed rules, | | | | A noticeable mistake most of the investors make |
| but certain broad indications can be given for a | | | | is the assumption that share markets are rational. |
| disciplined trade. The stock market history if full | | | | They believe that they will be able to ascertain |
| of twists and turns that baffle the investors and | | | | the reasons for the typical behavior of the |
| brokers who are supposed to have professional | | | | market at the given time. This is the wrong |
| knowledge of investing. Yet by working within the | | | | assumption by the trader. It is sufficient to catch |
| limitations of the fundamental concepts of trade, | | | | the direction of the movement of the market, |
| one can hope to make reasonable profits and | | | | without going deep into the issue. The winners are |
| avert major losses. | | | | the ones who take notice about the direction and |
| One of the share market quote goes, "Bulls make | | | | the duration, and the losers rake their brains with |
| money. Bears make money. Pigs get slaughtered." | | | | too many questions related to the movement of |
| (Anonymous) | | | | the market. |
| For an intelligent investor with excellent trade | | | | The share market does not make advance |
| acumen, bull or bear market is the level playing | | | | announcement regarding its move. It moves like |
| field. One makes profits depending upon the | | | | the secret movement of an army column. It |
| timings of the trade. The golden rule of | | | | beats one or all the supportive fundamentals. It |
| investment is buy low-sell high. This is a simple but | | | | may not be clear to you why the share prices |
| profound concept. Your timing of entry to the | | | | are going up. Do not wait too much, but accept |
| share market is important. | | | | the fact that the share market is on the move |
| It is a futile exercise to find fault with the market. | | | | and act accordingly, before it is too late. |
| The market is always right, your reading of the | | | | Trend is the foundation of all profits. To make |
| market conditions could be wrong. | | | | more money one needs to be associated with |
| Many factors influence the working of the | | | | the term of trends. Your ability to catch the trend |
| market, and the price of the share at a given | | | | well in time is the core point. When you are able |
| time, is perfect and beyond question. Other things | | | | to stick to the trend successfully for a long time, |
| remaining the same, the longer you stay right | | | | you are the winner. The short term investors and |
| with the market, the more profits you will make. | | | | dry traders make some profits, but the huge gain |
| The longer you stay wrong with the market, the | | | | is in catching large market moves. |
| more money you will lose. | | | | Allow the profits to run and cut your losses |
| The trend changes are a unique phenomenon in | | | | quickly to retain your chances of success in the |
| the market. One has to catch them right. It is | | | | market. Trading discipline is an important factor to |
| mostly observed that every share that goes up | | | | make profits. |
| will go down and those that go down will go up. | | | | All important tools of investment like technical and |
| Once the trend changes, the movement in the | | | | fundamental analysis may not be able to fetch |
| opposite direction is extreme. | | | | consistent profits to you from the market. |
| If there are reasons for the shares to make big | | | | Getting at the successful market timing is |
| directional moves, the investors and brokers | | | | something different. |
| would be able to locate them. You can never | | | | Get attached to a good broker, who has |
| know the precise reasons. What we are | | | | successfully traded for his customers for a long |
| estimating is the perception of the market. None | | | | time and who has the capacity to instill wisdom to |
| can comprehend the reality. You are probably | | | | the investors and then make your own trading |
| wasting your time, if you do threadbare analysis | | | | decisions by analyzing all the related facts |
| and try to locate the reasons. You will never | | | | rationally. |