A trader must have practical as well as technical knowledge about stock market before making the A trader must have practical as well as technical knowledge about the stock market before making the entrance into it. The backend working of stock market exchange is quite complex and beyond our understandings, especially, for new traders. The fluctuations in the stock prices appear to be erratic but vary due to the actions of large companies. Many stock tips for tomorrow have suggested examining the technical factors before going to start in the market. These technicalities consist of four phases:
- Accumulation or Bashing: This the very first phase in which a company is preparing to make the start in share market. Companies remain stationary for some time in this phase. Which is the decisive for any firm? Nobody wants to invest in companies with this phase?
- Markup: This is the most crucial phase for a company as the buying and growing of stocks start to fetch some gains. This is the phase where the company begins to uptrend and it is also said a bull phase. This is the phase where investors invest their money. This is said to be the time where investors are advised to invest the money and earn a profit. The earlier you invest in this stage, the more profit you can extract from the market.
- Topping or Distribution: This phase is said to be much similar to the phase 1 where the company starts to decline. It is said that investors should sell their stocks in this phase. The shares are being sold for some period of time which is quite reverse of accumulation. The Buyers and sellers in the market move parallel and the stock just drifts along. Whether it is distribution or accumulation is less easy to recognize this point. It is preferable to be ready for the next profit signal, rather than trying to predict the next move.
- Declining or Bottom Line: The study of stock cycles will give investors the heads-up on trending conditions for a stock, whether up or down. This would allows the trader to estimate and plan a forward moving strategy for profit that takes advantage of what the price is doing. The entire cycle can repeat or not.
Once you have gained the knowledge, have a plan to keep some, a gain is not a profit until you make it useful. You can use a stop loss as part of your trade management plan to help you to capitalize on your gains. With implementing the unique, innovative and well-analyzed equity tips you can make a great profit in the market independently of the trend. Experienced and innovative investors who know the different price cycles are able to take the best profit opportunities. In this phase, you learn to make the right decision at right time. Some share market tips providers also provide this information to the client.