Thursday, June 13, 2013

The Science of Making Money in Stocks

hi investor this is the article i been read maybe over here can share some investment Ideas for everybody ! 

The Science of Making Money in Stocks 

Why do some people succeed spectacularly in the market while others fail? 

The market is the same for one person as it is the next. 

So why the big difference in performance between one person and another? 

It all boils down two things: 

1) Knowing what works, and 
2) Doing what works 

While the stock market isn't a perfect science, the fact remains that if you concentrate on what works and stop doing what doesn't, you will most surely succeed in the market. 

Knowledge Is Power 

We've all heard the old adage: 'knowledge is power'. 

It's a great saying because it's true. 

And that saying couldn't be truer than when it comes to investing. 

Take a look at your last big loser for example. After analyzing what went wrong, you soon discover some piece of information that – 'had you known that, you never would have gotten into it in the first place'. 

I'm not talking about things that are unknowable, like surprise announcements that can catch even the most professional of professionals off guard. I'm talking about things that you could have known about or should have known about before you got in. 

This is part of 'knowing what works'. 

Did you know that roughly half of a stock's price movement can be attributed to the group that it's in? 

Did you also know that oftentimes a mediocre stock in a top performing group will outperform a 'great' stock in a poor performing group?

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