The stock market is comprised with numerous strategies to earn profit. Those who invest here as a guest or day traders means they invest only for short period of time and they choose easy profit earning strategy that is market timing
Here stock market timing refers to as a past performance of company. How stocks have performed in past, what was there value in stock exchange market all the factors determined its profit and loss performance in present. As history rewind itself, sometimes they follow the same path as they have followed in past to make investor earn profit.
Stock marketing timing depends on the two factors of the company that is fundamental analysis and technical analysis. Fundamental analysis provides financial status of company that whether the company is capable to earn profit and provide best rate to investor or not. Technical analysis determines stick Movement in past that how many time it has provided profit and loss in market.
Benefit of market timing strategy
This strategy has provided benefit to many investors as they can easily predict or judge through the past performance that the stock will provide them profit or loss.
By using stock market timing you can check the value of company and also there financial status to predict there present performance. This strategy helps investors when to buy stock and when to sell them to gain Profit. Most of the day traders use this strategy as they want instant result and can not wait for longer period of time to earn best profit and income.
Drawback of Market timing strategy
This strategy sometime doesn’t perform as predicted by investors. If it is providing so much profit to investors by predicting the stock value performance in past then imagine every investor in stock market would have become rich. Also some investors who don’t have knowledge about stock and don’t know how they perform even those people can use this strategy to earn money.
Stock market is very risky and cannot be predicted by anyone except in some cases. Huge investment is requiring earning profit from this time market strategy. You have to make a track of your money invested and earned profit to analysis that this strategy is working or not.
Conclusion
There are different ways through which anyone can make profit from stock market. Like buy and hold strategy, buy low and sell high strategy and stock market timing strategy. You can choose anyone as per your convenience and comfort.
But remember if you stay longer in stock market then you can earn more profit which is unpredictable. As short term investors earn little money as compared to there investment.
Also complete knowledge of stock market is required before stepping here. Half knowledgeable person or little knowledge will provide only loss to you as you don’t know which stock to buy, when to buy and how to buy.
You can gran information from many stock market books, news channels and online sessions provided by stock traders about how stock perform and how you can make profit from them.
About The AuthorGaurav Heera is a Stock Market expert, Analyst & educator having more than a decade experience in the stock market industry. Currently he heads Delhi Courses an institute best known for its best and affordable stock market course in Delhi.
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