Wednesday, September 2, 2009

MAKING BIG PROFIT IN THE STOCK MARKET 1

I am delighted to let you know something you never taught about and I hope you start thinking about it after reading this article.
There is always the scientific approach to achieving a set goal, and to achieve the set goal you need to go some level spiritually. I mean you have to subject yourself to some divine laws made by GOD. You can do so much if you can be like GOD, so also you can make so much money trading in stock.
Every scientist tries to be like GOD and this made achieve the unimaginable success in their discoveries or theories. And if YOU can try to be like GOD, like the scientist, you will definitely make so much money trading in stock.
Let us now look at some of the principles and indicators according to Charles Dow, a renown scientist, In a series of stunning editorials for the Wall Street Journal at the turn of the century, Dow laid out the foundation of his own theory on the stock market. Among them were;

· The market has three movements, all going on at the same time.
· The first thing to consider is the direction of the value of the equity in which the speculator proposes to trade, (i.e. either the price of the stock is moving down ward, up ward or static) the second the direction of the main movement, and the third the direction of the secondary movement (i.e. stocks fluctuate together, but prices are controlled by values in the long run).
· There are three phases to both a primary bull market and a primary bear market (not to be confused with the three movements mentioned above).
· The formation of a "line" in the averages indicates accumulation or distribution
· The market represents a serious well-considered effort on the part of far-sighted and well-informed men to adjust prices to such values as exist or which are expected to exist in the not too remote future.
The method of making money in stocks, according to Dow, was to study basic conditions and exercise enough patience to capture the major movements. One of the few speculators who discovered this relatively new concept of making money on Wall Street at the time was Jesse Livermore. He was able to accomplish this only through trial and error and the making and losing of several fortunes.
This method of making money in shares according to Dow, involves the study of the basic conditions and exercise enough patience to analyze and interpret the major movements.
Applying the Dow’s theory, you can make much money trading in stock if you study the price movement of the stock, volume of bid and offer
I bet you make much money if you buy a stock at the “lower lows” with strong fundamentals even on a short term.
It is my belief that any serious investor/trader who takes the time and try to gain a true understanding of the Dow Theory. I sincerely believe that the Dow Theory is even more valuable today than it ever was - in a world full of hedge funds using price, volume, and volatility breakout systems and with anyone willing to jump in at the sign of a potential trend.
Please bear with us as our site will try to incorporate the Dow Theory in our analysis.

Newton Oderhohwo is the CEO and senior investment and stock analyst of Stock Exchange Profits inc. member of investors intelligence group int’l and runs a periodic commentary on stock investments and making money in shares.

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