How To Win In Stock Market

By: Zongoo!.com - [business]
How To Win In Stock Market Efficient and secure stock course prognosis system Copyright by Zongoo!, 2002-2003

How to find stocks to buy? Use http://screen.yahoo.com/stocks.html . A few moments. The smaller is price, the bigger is volatility. The bigger is volume, the bigger is chance to buy wanted or sell available stock. Biggest opportunity of gains (of course, and risk) gives stock with price no more than $2, and volatility is 3-4 (maximum). Choose stock that have day's volume at least 1 million USD. It's a few main moments. Which graphs use in trades? Use graphs that shows stock's course in Japanese candlesticks. It's the only system that used can make prognosis of stock price swings. Another question, do stock course can be predicted? A vast majority of people think that stock market is chaotic and unpredictable. But it' s a big lie that makes a fortune for stock market advisor. Truth is that stock's as any other product's price is determined by demand and supply sizes ONLY. Any businessman will tell you that if demand is greater than supply, prices are going up. And vice versa, if supply is greater than demand, prices go down. And only Japanese candlestick's graphs can show demand and supply that way we can make prognosis of stock price swings. Graphs used in this booklet are from http://finance.yahoo.com/. How to understand Japanese candlestick graphs? Remember two iron rules that regulate any, including stock market: 1. When demand is greater - prices go up. 2. When supply is greater - prices go down.

Graphs of Japanese candlesticks are the only that show us relationship between demand and supply. One candlestick shows difference between chosen period's open and close prices. As you see, white candlesticks shows greater demand than supply and blue candlesticks shows greater supply than demand. So, price is going up on white candles and goes down on blues: White candlestick shows that period's open price is lower than close price, and blue candlestick shows that open price is higher than close price. Attention, different graphs can show candlesticks in different colors.

Break between white candlesticks shows that demand is increased a lot. It's sign of great possibility that price will jump up: Next similar example:

Relationship between size and color of candlesticks: 1. Big white candle shows that price is going up strongly. Demand is greater than supply, it means that people strongly buy this stock because they think it will go up further. 2. Remissive white candle shows that resolution is going weaker. Buyers doubt will this stock go up or down. 3. Big blue candle shows that market's players strongly dump this stock. 4. Remissive blue candle shows that sellers stop their horses and doubt that course may change. In overall, any small candles show market's indecision. Smallest candle - cross. If this indecision occurs at trend's top, sell your stock. And if this indecision occurs at trend's bottom, - buy. In this example you see that after uptrend indecision occurs, and then indecision transforms into decision go down:

Another example:

Let's analyze whole graph:

1. Candle is smaller than previous period's, and open price is smaller than previous period's close price. Solution: just watch. 2. Candle shows a greater resolution, but open price nevertheless is smaller than previous period 's close. Solution: just watch. 3. Indecision. Solution: just watch. 4. Trend's bottom, demand increased strongly. Solution: buy. 5. Indecision. Solution: sell. 6. A little sign that demand increased and open price is a bit higher, but it's not trend's bottom. Solution: just watch. 7. Very clear sign of indecision and it's trend 's bottom. Watch closer. And here comes break. Solution: buy at full force! How you understood, stock's course depends on demand and supply. Demand and supply, in turn, depends on emotions of buyers and sellers. The only thing you must care of if you want win in stock market - it's break between two candlesticks at trend's bottom. This break shows a big buyer's enthusiasm that bear course up. So, if you see this break at trend's bottom, - buy. And when you see signs of indecision at trend's top, - sell. And now do your home job and analyze this graph self:

When to buy? We will not go deep on questions how to open stock trade account; how to find programs etc. We will think that you have done all your home job, find your stocks to watch and so on. Market opens and you start to watch your stock. Question, when to buy? You buy, when graph shows these three conditions in same time: 1. Break between prices of previous period's close and this period's open. 2. Demand of these periods is greater than supply. 3. It is trend's bottom. If you see these three conditions same time: BUY.

For example, if you specialize on cheap stock with big possible gain. You watch these stocks, and suddenly you see all three conditions at the same time. What it can mean for you? For every $1000 invested you will get $2750 profit in a three days:

Of course, it's rare. Not daily and not any company gets orders from US government. But you can find hundreds of opportunities daily with gains up to 50%/day. When to sell? One sells when at trend's top occurs signs of indecision (small candlesticks) and when supply exceed demand.

When to watch? Conditions: 1. When trend is falling. 2. When trend is in indecision state. 3. When trend is at bottom.

How to find potential trades? I have tested a lot of programs, but only a few found helpful: 1. http://www.earningscanpro.com/ 2. USA Today market screener 3. http://www.pristine.com/esp/ (this program in my opinion is best)

Happy trades! Guide by Tadas Talaikis, President of Zongland http://www.zongoo.com

>>Reprint/Distribution Source : ArticleWareHouse.com