Successfully reported this slideshow.

How to buy low and sell high, a beginner should know


Published on

Published in: Economy & Finance, Business
  • Be the first to comment

How to buy low and sell high, a beginner should know

  1. 1. How to Buy Low and Sell High A Beginner Should Know
  2. 2. For any beginner trader, how to profit in the stock market could be quite a difficult job. We always talk about buying low and selling high is a tried and tested formula for many people who have seen a lot of profit in the market. But to a beginner, when is low to buy and when is high to sell, especially when the prices are moving up or down. At this stage, timing is important and there are a few points to follow, to buy low and sell high.
  3. 3. Identify The Patterns and Trends
  4. 4. You can use analysis tools to follow the patterns and trends to help you to predict a certain degree of accuracy, the future movement of the stock price. To do this, you will need a long history of past data to make reasonably accurate predictions into the future. You can although never be certain of the outcome, the chances of a stock to repeat the patterns happened in the past is much higher. You can draw trend lines to position yourself ahead of time to buy low and sell high.
  5. 5. Stay Cool And Not To Panic
  6. 6. In downtrend occurred in the market, everyone is panic and starts to sell his/her stock, every one of them fails to realize a simple truth. No one can ever sell his/her stock if there is no buyer. What does this mean? This is when those who are panicking selling their stocks in huge numbers and these stocks are being bought by people who are not panicking, but stay cool.
  7. 7. This is a vital quality you need to acquired, to stay levelheaded and not to follow the herd. When a down-trend begins, people may not start to sell their stocks immediately. It may take a little while before a big group of people start selling their stocks. At this time, the price would have fallen considerably. This is the right time to buy low, as long as the stock has a good intrinsic value. And when a stock price begins to increase, again a big group of people will start to rush in to buy when the stock price is far exceeds its intrinsic value. This is the best time for you to sell high.
  8. 8. Keep your eye on underpriced stocks
  9. 9. Those stocks which prices are below their intrinsic value could be a great investment. But beforehand, you must spend time to study a stock well to find out if it is actually underpriced. An underpriced stock is very different from a cheap stock. An underpriced stock is actually worth a lot more than what it should be sold. If you can correctly spot underpriced stocks and buy them low, you can make a considerable profit when they begin to appreciate in value.
  10. 10. These are the strategies you can use to time your trading. By spotting underpriced stocks, use the trend following analysis, and stay cool during large fluctuations in the market, you can learn to make profits by timing the stock market. And you will buy low and sell high.
  11. 11. GOOD LUCKS AND HAPPY PROFITABLE TRADING Discover The Profit-Pulling Wall Street Trading Secrets THEY Don't Want You To Know About! ==> Grab your FREE "Developing A Trading System" Report now ==>
  12. 12. Discover The Profit-Pulling Wall Street Trading Secrets They Don't Want You To Know About... ==> Grab Your FREE “Developing A Trading System” Report Now! ==>