Technical Short-Term Security Analysis

The stock market attracts all types of peoples and remains an enigma to the common observer as it continues to hold out large rewards to some and be a calamity to others, By following three basic principles: (1) insight, (2) good judgement and (5) self-discipline, many investors have been very successful in making profits. Without regard to the principles, the risk in stock market investment would be similar to gambling with a roulette wheel. Insight into the market is gained through a study of the market itself, its terminology, its components, the methods of stock analysis and an understanding of the rules of supply and demand. Good judgement is gained with experience and observation, active interest, and an awareness of the economy. It also requires reasoning power based on as many facts as can be learned about a particular stock. Self-discipline partially sums up the other two principles and correlates them to a sense of timing. In summation, this paper will illustrate that profit-taking in the stock market comes down to timing; the right time to get in the market and the right time to get out; the right time to buy and the right time to sell