Stock Market Basics Rule #1: Focus on Price
Educated traders follow a very different set of criteria. These traders focus on a single consideration: price. It may be a poorly run company but, if conditions call for a brief improvement in its price, it’s a good buy for the trader who knows when to get in and when to jump out for a quick profit. Conversely, a great company will sometimes climb out of its comfort zone to a price where suddenly there are more willing sellers than buyers. This means price is about to plummet, and it’s the informed short seller who could reap the benefits.
Stock Market Basics Rule #2: Stay Liquid
There are two main components to this rule. First, the stock has to be actively traded — at least 100,000 shares in daily volume. If trading stocks below that level, you run the risk of being stuck in a position simply because there are no traders on the other side. Second, you should stick to tickers with a price below $50 simply because the liquidity requirements above that level become distracting for most traders.
Stock Market Basics Rule #3: Practice Before You Jump In
This is arguably the most important stock market basics rule. Rather than investing in the broad market you could consider following a few tickers and getting to know their trading range very well. Remember, this is a stock market basics approach that focuses on price. Once you know where it “should” trade then you’ll be well positioned to be able to identify a departure from the norm and act quickly for a potentially positive result. This is the opposite of “buy and hold” because you may load up on a stock in the morning, dump it in the afternoon or a day or two later, then buy it again when conditions change. It’s an agnostic approach to the markets in which the most important consideration is your own desire to be successful.
Stock Market Basics Rule #4: Don't Try to Out-Think The Markets
Here’s a scenario you’ve probably witnessed: a company in a sector has a bad quarter, or maybe a product recall, and all stocks in that sector decline even though the other companies have done nothing wrong. It’s illogical but that’s how the market works. Similarly, mediocre companies will go up in price when the market is hot because “a rising tide lifts all boats”.
When you’re focused solely on price — the basis of the step-by-step trading strategy taught at Online Trading Academy — you don’t need the markets to be logical. You simply want to identify the zones where supply and demand are likely to be out of balance, then buy or sell when price enters these zones. Experience tells us there are large quantities of unfilled buy or sell orders at these price levels and, once the orders are filled, price will change direction regardless of what else is happening in the economy or the market.
Here are some of the market leaders of the DECADES
Recent raise in the retail business from early 2000s that pose challenge to multi core market cap companies like big baskett , big bazar and even ecommerce compitators like amzon and flipkart
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