How The Stock Market Works?

Trading has a lot of ways, it all depends on how you do it based from your own ways. How you like it to do, and involve lots of learning, understanding, studying. But the important is you have the patience and the will to do it while not looking results early. Once you learn the emotional, temperamental, psychological involvement to your person and able to learn in balancing them and not getting to the brink of retreating, little by little through patience you will learn and believe in yourself it's just a matter of time you can be there.

You are only a mile or a step away from getting there. Being in the market takes time to treasure the hard work you dealt with, no pain no gain. In any venture, as in life, career, taking a degree, in a job, in sport, in public service and in any other skill you are interested focusing on, foundation is important. Building self - knowledge is a requirement to reach every ones goal. And the commitment to do it coupled with persistence. Without these two, you will just be like those who wander all day sipping 'something' without knowing/feeling what's the 'taste' in your cup you drink except just to drink and 'flush' it in the 'corner' like a stray dog do in the street.

Trading (or getting involve in the Stock Market) involves deep understanding how it works and how you can benefit from, there lots of ways to gain from it, you just have the nerve and the will to love the fluctuations. Without the up and down movement of the market, there is no sense to it, that same with our life, there is always ups and downs. That's part of living in this world, up and down, when you go up in the stair, you have to go down too. When you ride an elevator up, you have to ride down too. When you travel via airplane, you have to fly up in the air, and you need to fly down to reach your destination. Same with what you do to yourself whenever you wear 'something', put it up, pull it down, no pun intended....

That same with the market, you have to learn how to ride the ups and downs. And learn to benefit from. The best way to benefit from the market is to capture the 'in-between' portion of the trend, that is, when the market is ascending (up), you have to go 'long', and when it's descending (down), you have to go 'short'.

That's how to get involved in the market, see the illustration below.

When the market is up (they call it bull or bullish), buy the market, that's what you call 'go long': buy at the lower arrow and sell at the upper arrow., and you will profit/gain from.

When the market is down (they call it a bear or bearish), sell lower buy lower, that's what you call 'go short'. Sell short, sell at the first high arrow (that means you borrow shares from the broker to sell short to the trader/investor who doesn't know what he do in the market, like those who invest in the 401k - those employees/workers who invest their retirement), and buy lower (the lower arrow), that's what you call 'cover'. And that's where you make a gain.

Easier said than done? Well, that's how living in this world, nothing is given for easy 'money' you have to work for it?...but in the market, you can make something in either way, either you start at the 'bottom' or you start at the 'top', you will be in 'heaven'...