This articles share with you my proven methods to make money from stocks market. The methods or techniques I share with you can help you make money faster from stock market and reduce your losses in stocks market. I hope it helps you in your investment.

There are a lot of ways to make money from stocks. Some people like to invest and hold for long term while some people enjoy the fun of trading and scalping in the stock market. In this volatile market, we should be aiming to become as alert as possible and try our best not to invest in the wrong stocks. 

In this article, I will be sharing some thoughts and methods I am using to make money from stock market. My methods work well for me and I am sure if you learn properly, you will be able to make money from stock market faster by applying my methods. 

Root Cause Analysis for Stocks

Why stocks move up and move down? Why is there a fluctuation of stock price? These two questions are important because you will start to find out why the stocks are moving up and down. If you can answer these two questions, you can actually make a lot of money from stock market.  

Why Stocks Move Up and Down? Why fluctuation of Stocks Price?

Any up or down in stocks price always have something to do with some underlying root causes. Some of the root causes will be:

  1. News
  2. Fundamental
  3. Technical
  4. Season
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These 4 root causes are the main root causes that are making the price of stocks going up and down. The most important causes among the 4 causes will be News. 

Do you notice that when there are big news about a company financial report will directly affect the stock price of the company? When a company announce good earning, most likely the stock price will go up and vice versa. 

You can trace back the date of annual report announcement and compare the stock price with the annual report performance. I am sure you will see something interesting about stock price. 

Some other news that affect a company stock price will be news about the price of the raw material used by the company. Some of the raw material will be:

  1. Metal
  2. Rubber
  3. Oil/fuel

The prices of the raw material will greatly impact the stock price of company as well. 

If you do not believe me, you can try monitor some stocks and compare the stock price with the announcement of raw material prices. You can compare rubber company to rubber price and you will find something about the stock price. 

By using the news, one can actually make a lot of profit from stock market. 

Ok, What is Next?

Of course, we do not want to be trapped in a non-performing stocks. So, it is important to find out which stocks has good fundamental such as PE, EPS etc. Once you found good fundamental stocks, you can then trace the news related to the stocks and start doing comparison as discussed previously.

And, you will notice that there are a lot of traders/investors are actually following closely on these companies and the news. Most of them are also making money using this method. 

What about season trading or seasonal stocks?

Some stocks are seasonal stocks. These types of stocks can be traced using technical analysis. You can using charts to find out when (in which month of the year), the stocks perform well. And, you can make your trade in those selected months. 

This is a riskier approach but if you can do it correctly, it is a good earning from stock market. 

All in all, making money from stock market is all about news and how the media is going to distribute the news. If they are publishing news that sound like the end of the world, then for sure, the market will go down and if the news they publish are all positive and happy news, you will see market is going up. 

Read the financial news of the world market and always track closely on announcment made by companies, you will not go wrong. 

If you find that my method works, please share this article with your friends.

You can also visit my blog to learn more stock trading techniques:

http://eblog-entrepreneur.blogspot.com/