Share market secrets revealed

The secret of making consistent profit in the share market depends on proper stock picking using the right technical analysis tool. The price of the shares would move up and down. A perfect trader makes use of every single opportunity in the share market.

If you are wondering the ways to make consistent profits in share market, you have come to a right place to get a bright idea. There are different ways people trade in the share market. Some are completely dependent on the news, some blindly follow the recommendation of their brokers, some depend on blogs and varied sources.

If you want to be a successful trader or an investor in any stock exchange, it is necessary that you know what exactly you are doing and take the responsibility of your decisions. Only then you could learn and master the game of trading.

First of all, one needs to decide whether one wants to be a trader or an investor. A trader regularly tracks the changes in the trend and tries to capitalize every price movement, up and down in the stock market. It involves more speculation and skill to do it perfectly. Also, it is more risky, especially when the stock market movements are uncertain. On the other hand, an investor, if believes, that a stock is undervalued, or has a great potential for further growth, invests on it and stays patient to make profits.

There are two types of analysis based on which the movement of the stocks are predicted. One is fundamental analysis and the other one is technical analysis. I would recommend technical analysis. Why? By fundamental analysis, even if you pick a platinum being considered an ordinary stone, undervalued, you would be able to sell it as platinum, only when it is considered platinum by everyone out there in the share market.

Most of the time, the market movement is based on speculation and the sentiment of the traders. Through the technical analysis, these sentiments are very well made clear and visible through charts, when you develop the right vision to grasp it.

Technical analysis takes the daily data of the stock (open, high, low, close and volume) and plots it to make charts. The charts would show up the movement of the stock prices plotted against time. Based on the different indicators drawn taking up the required data, a successful prediction is made.

To be a successful trader, it is necessary to play with the charts, by learning different technical analysis techniques. Compared to fundamental analysis, it is quite easy to learn. In earlier days, the analysts had to use big papers and draw charts on their own. Now, everything is simplified and you have advanced charting software to do that work for you. You just need to pick the right scrip considering the patterns and indicators.

It is quite easy to learn technical analysis through books and seminars. There are different indicators and chart patterns. You need to create and specialize your own strategy of trading by learning different strategies and experimentation it on your own. For that, it is best to do paper trading before you get directly into the market.

The real secret lies on your way of trading. If you trade, taken up by your sentiments, there is a lot of possibility that you loss your hard earned money. If you trade only by your intellect, following what the chart says, you could make consistent profits.