The stock market is a system where the shares of publicly-traded companies are bought and sold. A lot of people make a fortune from stock market investing alone. However, to succeed in trading, there are daily signals and other parameters that need to be considered. For you to know more about the stock market, keep on reading below.

It is an adversarial system –

Every investor has opposing views. When someone sells another buy, which means that someone will profit and someone losses. So, before you even consider trading make sure you know the ins and outs of trading, or else you will end up losing your hard-earned money.

You need to know what makes the stock prices go up and down –

Many factors can affect the rise and fall of stocks such as opinions of popular investors, media, political and social unrest, natural disasters, supply and demand, and absence or presence of suitable alternatives. The price of the stock rises when there are more buyers than sellers.

Stock market is unpredictable –

One thing is for sure, the stock market is unpredictable, although there are signals used by seasoned investors. However, signals are only guides and are not a sure way to predict the market.

Know the value of the stock –

The actual value of a stock is dependent on market activity. You have to compare the actual price to the fair value

Know the triggering event –

It is a must to know what will most likely cause a trend reversal.

Human decision process –

In trading, human intervention has the biggest say. Logical and emotional components are essential. We use logic to analyze and emotion when it’s time to act. If you want to succeed as a stock trader, you need to be logical and as much as possible won’t let your emotions overpower you.