Stock Market | Time Is A Key To The Success Of The Stock Market

After the 1929 crisis, the stock market took about 27 years to return to its peak in 1929. The bear market that began in early 2000 crushed the NASDAQ 100. As of this writing in late 2010, t the rate of ISN 'not even close to its peak, reached in early 2000. Surprisingly, it is better to own the wrong action at the right time for the right action at the wrong time. This is because about 75% of all stocks follow the general market direction or trend. What does this tell us? We are told, time is crucial for success. It makes a big difference between buying and selling stocks at the right time. Participants in actions better market itself right stocks at the right time. This is how success in the stock market, and make a fortune.

A successful strategy is to buy the best stocks at the right time. The best time to buy stocks is when the market is generally in an uptrend. Search stronger volume and overall market moves up, and lighter volume when the market corrects. This will tell the stock market is in a healthy uptrend. Be careful if during a period of 2 weeks or 3, the market has a number of days in high volume. These are called distribution days, and a sign that the market is ripe for a correction, or possibly the beginning of a bear market.

When the market is generally in an uptrend, look for fundamentally strong stocks that are emerging patterns of sound technical basis. You want the volume to be much heavier than normal, while the action is broken through a key resistance area. Large volume that says that large institutions like mutual funds and pension funds are buying shares. This is important because the big spenders are the fuel that can lead to action at the very high price. Another important factor is to ensure that their action is a leader in an industry group with better performance. Stocks tend to move in herds or groups. This will also help their stocks rise in price.

In my opinion, buy and hold, for the most part, a failed strategy. Unless you are able to buy shares in fundamentally strong near the end of a major bear market, or at the beginning of a bull market, just not worth buying and holding. You're much better off buying the best stocks at the right time and implementing sound money management. This is the key to success in the stock market, and how to make a fortune.