The trickiest part of stocks is knowing when to strike on them. You never know when’s the best time to invest until your intuition tells you. Prices fluctuate. A lot of it is left to chance; sometimes it’s like a horse race! Put all your bets in, and hope your stock stallion crosses the finish line first. However, there are some factors to understand and commit to memory–like the horse race lists and preferences to help you out–that can assist you on when to invest and when not to invest.
Know “supply” and “demand”. In order to hit it big in the stock market, you have to have a good understanding of the company you’re seeking investments. Know the company’s supply and demand, and you can better tailor your investments to benefit you in the long run. Basically supply is synonymous with the sellers in the company; demand represents the buyers. If supply exceeds the demand, prices go down; if the opposite occurs, the prices go up. Knowing the balance and how it waves determines when to invest in certain stocks. Generally a stockholder benefits more from the higher prices than the lower. Basically the norm.
Again, think of it as a bull’s eye. Aim right, and you’ll hit it. Simply do your homework. Study as if you were going to take the Bar Exam. That’s the field of law practice, in case you were wondering. And the Bar Exam is like the pinnacle of death for test-takers (in other words, extremely difficult to get a decent score!). Know the company’s product. Review stock history. Another comparison would be weather forecast! If you can spot the hurricane coming, you’d know to board the windows up and head for the basement. If you catch the cold weather warming up, make a few sandwiches and bring some Kool-Aid for the beach! Be prepared.
Really, it’s simply a game. But a serious financial game. Play it well, and you’ll reap the rewards.