How to Become a Stock Market Genius

Stock market trading is very popular amongLiquidity means the conversion for the share for cash.
investors. However, ups and downs in the marketSo, whenever you buy a stock, must check for its
make several investors reluctant to enter the stockliquidity. Of course dead stocks will never provide you
market trading. Everyone knows about the potentialliquidity. Shares with more liquidity are popular on the
of stock markets that has the caliber to makestock markets and of course guarantees you more
anybody millionaire overnight. The game of marketreturns. Checking liquidity of shares is easy. Simply
pays you extremely well and requires very less timeanalyze the volume of trades for the past one week
input from you. Even if you are new to the markets,of the share you want to check liquidity for. Liquidity
you could become a stock market genius byrefers value of the share and therefore more liquidity
following some easy tips.means more value and vice versa.
Always remember two golden rules of the stock4. Determine the undervalue stocks and positions in
market game; emotions have no place in trading andthem- when going for purchasing shares, you must
one must enter the market with extreme dedication.lookout stocks that give you more dividends. This is
If you have these skills then you could easily becomecalled as dividend research. So next time you buy the
a market genius by following the tips given below.stocks, simply perform dividend research and go for
Following traits are mostly found in most of thehigher dividend paying stocks.
successful market genius.5. Market watch- again one of the most crucial task,
1. Don't be fool- never buy dead stocks- Manyyou need to perform. Before buying any stock, you
investors buys dead stocks with a hope to makemust look for oversold or overbought and then
money from them. Such thinking is totally absurd.decide your move. Keeping a watch over the market
Always remember that the dead stocks have nowill help you take good decisions and you will be
value and that is why they are dead. However, youupdated with the current trend of the market.
could go ahead any buy penny stocks. All dead6. Effective planning- before entering the stock
stocks are penny stocks but not all penny stocks aretrades one must plan his trading strategy effectively.
dead stocks. Many people had tried buying pennyMany investors buy stocks, and do not know when
stocks and over a period of time they have madethey have to come out of the trade as a result they
millions by investing in such stocks.lose money. If you preplan your trade then not only
2. Research is the key to success- in stock marketyou will make money but would also be able to avoid
trading one has to be really very active whileemotions (the biggest enemy of a stock trader.)
researching for stocks and trading opportunities. The7. Check for stocks from reputed companies- this
lazier in researching you are, the more money you willdoes not means that you have to buy the top
lose in the course of your trading. It is verystocks that cost very high. By checking for stocks
important that a trader must take time to researchfrom reputed firms means that before buying stocks
and find out the best stock for him before he fundsof a company you must cross check the reputation
in it. If you are also interested in buying the pennyof the firm. It will help you determine their trading
stocks and getting rich with them then only hardpractices, which indirectly affect value of their stocks.
research could help you buy such stocks. WhateverEven if the shares of a company are at low (risk),
you do while researching, always remember that it isone could buy invest in them citing the past company
helping you gaining experience and knowledge of theperformance and its reputation.
market. Higher returns in stock trading are onlyBecoming stock market genius is not a tough job.
possible if one research deeply.Following few simple tips anybody could become a
3. Always invest in stocks that have good liquidity-successful stock market trader.