Trading for dummies

Roze Trading in the stock market can be challenging and lucrative.

To be a successful trader, you need to know how to identify and invest in bear and bull markets, and you need to know how to use market analysis tools to help develop your own trading system.

And, with the embarrassment of riches available on the Internet, you need to know the websites that offer the most help.

Signs that the market is entering a phase of investor confidence are in the following list: Bull markets begin before the economy starts to recover. Interest rates are low. Industrial production statistics are inching higher.

Technology and cyclical stocks are starting to rise. The bullish percent index indicator shows a bull alert or a bull confirmation pattern.

How to Identify the Beginning of a Bear Market As you trade stock on the market, you need to know when the market is taking a downward turn — becoming a bear market. The signs in the following list indicate a bear market is approaching, so adjust your trading strategy accordingly: Bear markets typically begin before the economy starts to decline.

Interest rates are rising. Industrial production is starting to fall. Basic material stocks, energy stocks, and consumer staples are performing well.

The bullish percent index indicator shows trading for dummies bear alert or a bear confirmation pattern. Follow the steps in the following list to develop a system that works for you and that reflects your priorities and tolerances.

Follow the Authors

Select system development tools. Gather historical data to test your system.

Develop and test your system design. Identify system optimization pitfalls.

Build your trading muscle with no added pressure of the market. But since you are searching for a dummies article, too much detail is likely overkill. This article is honestly a gateway into trading.