Apply Sun Tzu in Trading Stock – What Should Investor Prepare Before Getting Into The Battle.
The stock market is a place of high-level war of knowledge, it is a fierce battle in which blood and tears will be long and long days, sometimes insiders have the ability to forget the close joy in life.
A legendary Jesse Livermore number one, speculative genius, and the old wolf of Wall Street’s old wolf also ended his fate and name in a sad note that was no more sad. So, before deciding to participate in the stock market, ask yourself honestly and seriously whether you should invest in securities in large amounts or not, and should learn investment evidence. How to contract? There are many things to say, which can be skimmed quickly through a few basic points. Let’s apply Sun Tzu in trading, so I know I know people.
|The stock market has been fighting each other since the beginning|
1. First, assess yourself at what level to play the stock.
There are 2 most important components in the stock game. Yes, it is only two factions, me and the enemy.
Investment funds, self-employed companies, they are often the final winners.
Small investor, which divided into many components:
i) People who do not know anything about securities, do not know basic analysis, technical analysis. Definitely lose. ii) People with little knowledge of securities, a little fundamental analysis, a little technical analysis. Should participate in investment funds or securities companies to cultivate more experience. Ability to win about 30%. iii) Knowledgeable people in the macroeconomic: choose goods periodically, when prices fall long and turn up and the industry grows again because of the cycle such as: real estate, oil, steel, goods , transport, port yard. They have the ability to win 50%.
iv) A sharp-minded, strong, coherent, capable person can learn technical analysis and macroeconomic theories towards professionalism, and begin to learn and practice with The amount of capital is very small, the training for the account is steadily increasing, they will be professional investors. 2. Required factors for securities investment i) Observation ii) Intelligence iii) Endurance Having the above things will give you an image like this:
But as well as the inherent deception of stock, the image is really different from what we hear or are told. The terminology of the industry is pig bird and bum.
3. Technical knowledge, tools and indicators need to be firmly grasped when participating in the stock market
- Dow Theory
- Wave Elliott
- Trend line
- Resistance, Support
- Japanese candles
- Fibonacci, Gann
- MA average line
- MACD indicator
- Cash flow index MFI
- RSI indicator
4. Which securities investors should use the system and trading software to analyze?
It is best to use at least 2 trading systems to avoid data errors. Each software has its own strengths. Individual investors can use Investing.com or a non-copyrighted version of Amibroker.
But as a real stock investor, it is best to buy the TradingView system, the price is not worth a lot but it is worth a lot of money, a lot of support tools, can be customized according to your needs Best price to every minute, support Vietnamese.
TradingView price list can be found here: https://www.tradingview.com/gopro/
Keep buying such knowledge and tools first, the road is still long and difficult.