Monday, 31 August 2015

Here is how you can make big money from small stock investments

Here's how you can make big money from small stock investments
Trading in the Stock Market is not an Easy thing for most of the People. The reason for this is it requires a lot of Investment to earn good amount out of Trading in the Stock market and also it involves risk of incurring loss and loosing lot of Money. For the trader who wants to earn good profit with small investment can trade in the form of Intraday Trading. In Intraday trading the limit of trading amount is five to ten times the actual amount deposited. Thus the trader can earn good amount with small investment and with small price movements.

In Intraday trading the trader can take the advice of the advisory firms in the form of Stock Market Tips. These advisory firms give advice to the traders about when to buy a trade and when to exit the trade. They provide proper levels of the entry and exit in the trade. Also they provide proper stop loss levels so that the trader is prevented from incurring heavy losses.

If the trader doesn’t want to rely on the advice of the advisory firms they can base their trade on some strategy like pair stock strategy. In this strategy first a pair of stock is chosen which have similar price movements. Then these stocks are watched for deviation. When the deviation reach a maximum or critical level the buy and sell signals are initiated. One of the stocks of the pair is bought and other is shorted. Thus when both the stocks move towards minimizing the deviation and towards their mean position profit is made in the trade. But in this strategy deciding the levels of critical deviation at which the buy and the sell signals are initiated is important. Also it is advised to trade with the stop loss even while using this strategy. Thus big money can be made using some strategies and with minimum investments using Intraday Trading.

No comments:

Post a Comment