Fashion M a kes Big Money!
How to Make Big Money in the Stock M a rket The average in investor is usually satisfied with a 10% to 15% return on their money and ecstatic if they get an annual return over 20% on their stocks. However, what if you were told how to make big money in the stock market every day, not just annually? That would be exciting. You can, but it's not that easy to do. The people that earn the big returns are day traders or short-term investors. They search for opportunity of dips in a stock and buy it low or look for stocks that are ready for a breakout increase. Once it goes back to its average price or rises, they sell, but they do it daily or at least on a weekly basis. If you pick any stock and look up the closing price, it usually tells the stock's high and low for the day. All the day trader does is look for stocks that repeat the pattern and place a limit order to purchase it at the low. Once they put the order in place, they wait. A limit order is nothing more than an order that says, "I'll buy the stock for X dollars a share but won't pay more." When the stock hits that price, the limit order takes place for the price you set or lower, if the stock dipped lower before the broker completed execution. If you chose to short term trade, the limit order is an integral part of the equation. Once you own the stock, check the upper range of the pattern and place a limit sell order for your stock. Automatically it's executed at that price. Seems simple, right? The key is finding stocks that behave in that fashion. You may still ask, "How do I make big money in the stock market when I can only afford a few shares of Exxon Oil or Microsoft?" The answer is not to buy them. The larger blue chip companies are frequently safer, except for rare occasions when stocks like Enron fool even the experts. The fact that they are safe means they aren't as volatile as smaller companies. You want the volatility, but a predictable volatility if you want to make big money in the stock market. The higher the risk, the higher the reward becomes. You need to choose stocks that move up and down in a pattern on a daily basis, or weekly curve that is at least a 10% to 20%. These are usually smaller stocks that take a big percent gain or loss when the stock moves a few pennies. Big money in the stock market doesn't mean you have to invest big money. Penny stocks are affordable to even the smaller investor. If you buy a stock for 10 cents and it gains just a penny, you made 10 % on the transaction. When you repeat this process using your original investment and profit, then the profits grow exponentially and you see the big money from the stock market that you always heard about. Since stocks don't always behave the way they're supposed to behave, it's always wise to set back half the money you made, at least at first, so you have money if the stock trade goes sour. Finding the stocks that behave in this fashion isn't easy, but no one said it would be. If it were easy, everyone would do it. You have to study the market and find individual stocks and watch their behavior for patterns. You have to learn to read the charted indicators and understand how they work, or you need a stock service or computer program that does the job for you. Read about how you can use Penny Stock Tips to earn thousands of dollars. Learn How To Buy Penny Stocks, it is the fastest way to make tons of money. Article Source: http://EzineArticles.com/?expert=Gilbert_Stockton Fashion M a kes Big Money!