How to make money in the stock market?

發信人: hellofriend (hello), 信區: Stock
標  題: How to make money in the stock market?
發信站: BBS 未名空間站 (Thu Mar 25 03:08:50 2010, 美東)

As a retail stock trader, there is nothing I can do but follow the market.
The market is moved by the big players, i.e. mutual funds, hedge funds, etc.
A small retailer like me has nearly zero effect on the market, no matter
what I think, or what I do. The market just does not care what I do,
dreaming or predicting.

The big player can have a great deal of effect on the market. But they have
a unavoidable shortcoming, the size. The buying or selling by big player can
move the stock price quite a lot. So they can not accumulate or distribute
easily. If they make up the mind to be in the buy mood, or the sell mood,
after numerous research, they just can not change the position easily. They
need time to change. That is where small retailer can have a chance making
some money.

The rule is let the big player make the move. Then I can follow. The most
useful observation is through the volume. Whenever the big player make a
move, there must be some volume. The easy but effective method is watching
the volume. When a stock has a decisive move with huge volume, it is
reminding me there is a big shark playing. There is a lot to learn and
polish in this topic. Some effective methods can be learned by practice or
even by reading books.

In a word, as a retail trader, never predict a big market move, but follow
the move.
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坐莊，開股票行