Invest Your Income in Stock Market

Stock shares is one of financial investment to do investment. We know that financial markets are divided into capital markets and money markets. Shares including capital market products is a proof of your ownership in the company issuing the stock certificates. Shares have an intrinsic value and the actual value.

Lets Learn how to trade a stock and here are some tips on how to trade  in stock market:

Treat the stock as a "human being", rather than understood merely "by the book theory". See also the people who manage it, the player behind (market maker, player, follower) and the characteristic of each stock, and then entered into the analysis and the tools used.

Do not fully trust your financial data, especially the one that have not been audited and approved by regulator. So, better if your remain in conservative and cautious ways.

There is a good idea to collect blue chip stocks that go down after rights issue as market sentiment react. In a short while usually the price will creeping up quickly corrected. The blue chip stocks price returns are usually average and modest, but decent enough to hold in the long term view as a best stocks to buy.

You might also follow the action undertake by big player or broker. Typically, this type of share is not much being trade therefore its easily to be tricked by big fund manager. Normally, the stock transaction characteristic volume is quite large and its value goes down immediately but then it slowly rises. Again, be careful because the trend will turn around quickly and use your excess money.

Discipline. Set an upper limit and lower limit. For example, above 33%  and below 5%. Obey your own established rules and do not ever follow your passion and emotion for the decisions. If you dare to take risks, do not cut loss anything, unless 1) you use margin, 2) stock prices are relatively high, and 3) when you entered the price trend was reverses.

Diligent and serious. Analyze and review the portfolio on a regular basis. I suggest to hold no more than 9 types of stock. Focus on a maximum of 3 shares and hold the stock for 1-2 retained for a full one year. Human capabilities are limited, so don't be greedy.

Learn the fundamentals of global economics and certain issues is a must. Better yet, if you always follow the national news and observe its correlation with movements in the stock.

Consider the unique characteristics of the stock. For example, there is usually an upward trend around a certain time of a year as an anticipation of the official financial statements and dividend distribution being published. In the contrary due to no news and events. While at the end of the year there is a tendency to rise, as an anticipated and the January window dressing effect. In the month of February to March, usually occurs after the correction window dressing and January effect. And so on.

Brokers are also human. Invite them to lunch and make friends. Just do it with sincerity. Do not ever expect you'll get insider information there. In addition to unethical, it is also against the law.

Believe that many variables beyond our control. That's where the hand of God is in power. that's way if you in a gain, do not forget to donate some of it. what you receive and be humble. Great investors that I know usually a low profile person, simple, and do not talk a lot (i.e. Warren Buffet, George Soros, Timothy Sykes)