Sunday, December 18, 2011

Flipping the Stock

My friend ask me, how to make money in stock market? Actually, making money in stock market is not so difficult, there are many tools available today. Investment is all about plan with goal, strategies and follow by action. One of the easy strategy use by many is Buy and Hold. Some suggest to buy only when market crash.

It's true, timing and opportunity! While waiting market to crash, sometimes, we may use small percenage of our money to trade the stock. All the business actually involve in trading, buy low and sell high. The manufacturer buy raw material, process and sell at higher price to make profit The agent buy from factory and sell to consumer with higher price to make profit. Sometimes we also call this method as Flipping Strategy-  buy the stock for short term, with intention to sell it quickly on same day or few days.

The best time to trade is during the uptrend formation. We know something is hard to move, but once move, it's hard to stop! Yes, momentum, stock price also observe the same movement. Many investor would like to ask, why the stock move up? Sure got something! But it doesn't matter for investor like us, we only care how to ride on the trend and make the profit.

As I always advise my friend, stock can talk! Listen to them carefully, volume and price movement will tell you everything! For example, before the party end, usually it will follow by big volume and the price is flag or down. If you happen to buy the stock, get out of it before the music stop! Every stock can talk, if you DO Not understand their meaning, better stay out until you study and understand their language.

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