4 Tips to Make Money in the Stock Market

Following are the four trading tips that will help you to maximize your money-making potential in the stock market:

1) Stay on top of the latest news: It is important to have the most up-to-date stock news on companies in the stock market. Share prices will go up when there is some good news related to any company. Events such as mergers and acquisitions can have a significant impact on the share prices.

2) Select a quality stock research report: A stock research report is done by analysts and researchers who are renowned in their industries. It is a valuable tool that tells you whether a company is worth buying or selling. It provides you with up-to-date information and timely developments happening in the stock market. There you'll find information on stocks, company reports, equity ratings, share prices, charts, news, and technical analysis.

3) Don't spend much time on stocks with little price movement or small volatility: Look for high volatility stocks that can help you earn money faster than any other investment.

4) Improve your quantitative analysis skills: You need to be able to analyze financial data and numbers so that you can make a quick and sound judgments. For instance, you can find out if a company share is under-priced or overpriced by using financial ratio analysis. A stock can be considered as under-priced if its Price to Earnings (P/E) ratio is very low or lower that the competitor or the industry average.

Author

Kelvin Wong Loke Yuen is a highly experienced education writer. He has obtained many certifications from the UK, USA, Australia and Canada, including an MBA and a Postgraduate Diploma from Heriot-Watt (UK's World-Class University) and a BCom degree from Adelaide (Australia’s Group of Eight University). Follow him on: LinkedIn