How to make money from stock market quora

how to make money from stock market quora

My vrom to If most people lose in the stock market or gambling, then would I make money by doing the opposite of …. There fgom something called the serenity prayer. Here is a simple adaptation: Allow me to go with the flow when it is in the right direction Allow me to stand against the crowd when they are running in the wrong direction Give the wisdom to know which is. Mohey said I was an idiot true but more importantly if it was the case, people would do the opposite and win false. While I have rarely been accused of being intelligent, probabilities still do not work like. So, doing just the opposite of what everyone else does will not make You monry hero. Sell Apple short because everyone else is buying will achieve one thing only: provide liquidity for other buyers, thank you very. This is an important point for people who develop systematic automated strategies: improving the trading edge comes from reducing false positives, or moving near wins small losses into near misses territory small wins.

Unfortunately so do a lot of market participants. The apparent simplicity of the answer hides sophisticated concepts that can be broken down in two part: statistical and psychological trading edge. Most market participants believe that stock picking is the alpha and omega of alpha generation. Stock picking is merely everything that precedes entry. It excludes bet size and exit. Unfortunately, stock picking has little influence on the statistical trading edge. Furthermore it has impact on trading frequency: the tighter the stop loss the higher the frequency and vice versa for Buy and Hope. Please read further about the psychology of stop loss, even if you do not agree. If You do not have a proper exit plan, You will fail to appreciate the exit plan the market has in store for you. Secondly, Stock picking excludes bet sizing. Bet sizing is the most important determinant of performance. Here is an interesting story to prove this point. My unbridled ambition was to help them trade better 0. Nothing surprising there, everyone has access to the same research and there is healthy cross pollination. What was surprising was that despite low dispersion of holdings, there was high disparity of performance and volatility: despite owning the same stocks, some people were making a killing, while others were getting killed. Conclusion: the difference that made the difference is not stock picking, it is bet sizing. Watch your winners, but watch your losers more closely. Interesting story: i once had the opportunity to analyse multiple portfolios over many years across many managers on a trade by trade basis. The most important findings were:. Optimism peaks before entry. After that, emotions kick in. The ultimate proof of this is divorce statistics…. Few market participants give bet sizing the importance it deserves. It is often either conviction feel good based or equal weight. Once they are in a position, things change.

Jesse Livermore is the Michael Jordan of stock trading.

It is a question that would be incredulous, if only it wasn’t so commonly asked. Traders are dabbling in the stock market with expectations — and asking questions to that effect — that would nearly be mathematically impossible to realise. A seemingly innocuous query for those not very well versed with the concept of returns and compounding. For those who are, a 6 percent profit every day, compounded daily with profits reinvested for a year would mean Rs 10, would grow into Rs 3, crore. This is not counting weekends, on which markets are closed. Do the math yourself.


Unless you know your math, there is no end to being optimistic.

If you ask a man on street how are you going to become rich in few months? Before monej start piling up cash from investing in stock market you need to know some facts about it. First thing you need to understand about stock market is who all can invest in it. Stock markets could be how to make money from stock market quora risky business. Anyone cannot take risk of investing his or her hard-earned money without realizing serious consequences. Therefore, markrt trading is not for everyone as you need a strong financial background as well as some degree of intellect.

Stock trading is all about knowledge and understanding of markets, both domestic as well as grom markets. Just elementary knowledge is not amke to work, rather you need to have in-depth insight about the behavior of markets at any particular time. The miney is how you are going to develop this knowledge because it is a vast area. I am talking of those companies. Researching data like how a share of a particular company has gone up or down in last 10 years.

Day trading is where you invest money for stock and you lose or gain in that particular day. However in long term trading you can wait and sell a stock whenever you want. You can wait and see if the price of the stock is going high then you can sell it otherwise wait for the right time.

You have to keep a close eye on it. Analyzing charts could really help you in choosing a right stock. With the help of technical chart you understand complete history of a stock. However, technical charts could be manipulated. When a stock has a low lucidity and controlled by few people then it might be manipulated. You must cut down the noise that you listen daily.

You should use your own brain and analyze the market. Self-education is the best way to succeed in stock trading. Finally, before you take a plunge into stock markets you must consider risk involved in this line. It is my responsibility to wtock you that stock trading is very risking business and a lot of people have lost.

Stock markets could make you a lot of money but you need an understanding and thorough experience of market, without it stock trading is just a lottery. What a wonderful article. Thanks for sharing such informative article with us it was of immense help to me and you explained all the topics in such a easy way. I want to learn about stock marketing and want to earn huge money if anyone can help me please contact with me It is very simple and not risky because long term trading is not like day trading which is very risky.

I agree with the part being risky. But very very risky for day trading. I disagree. Rest assured its better than any MLM business that promises great things by spending your time and money. One you know how money flows you get addicted no matter what the market says. In this age of Internet. Yes, stock brokers do help and we should study the market before we invest in anything. I guess sometimes even luck plays a major part, and sometimes even when you are lucky most of the times, you tend to lose a great deal through the market.

You can self educate yourself to become an investor. Nobody cares about your money more then you do! Save my name, email, and website in this browser for the next time I comment. How to Make Dollars in One Day? Please enter your comment! Please enter your name. You have entered an incorrect email address!

What are some recommended books for beginners to learn about finance and Wall Street? Answer by John Robersonstock trader, on Quora :. I’ve been a successful professional stock trader for about a decade, and there is one book that may well have been read by every single trader in the world. Here’s how I learned about it. When I started trading, the best trader in the office was this guy Marshall. What a character! Maybe 5’1″ 1. Hated to drive, so he bought a ridiculously nice car so that he could get other people to drive him around just so they could drive his cool car. Marshall was originally a pretty middling trader, but he left town for a summer and returned an absolute machine. He retired by age Needless to say, as a new trader, I was eager to hear just how he had turned the corner! That’s it. That’s what trading is really all. It’s not about fancy mathematical models or keeping up on your CNBC viewing. It’s about people. This brings us to a book that you can use to start a conversation with any trader you ever meet:.

Comments

Post a Comment