Increase your winning rate according to the Stock market investment checklist

Most of the investors understand the stock market react ahead of economy sentiment, that is the reason it has being called the "Economy indicator". In order to make money from the stock market, the most important is to identify the market trend. It will definitely increase your winning rate if you able to apply the right strategy according to the trends. Nevertheless, this is the matter that concerning most of the investors. We can categorize the market trends into 3 different cycles:

• Bull market: Economy sentiment good (Optimistic), market volume increase as market moving up
• Consolidation market: Market consolidating and waiting economy news to drive it to Bull/Bear market trend, it is also called Profit taking/Filtration process
• Bear market: Economy sentiment bad (Pessimistic), market volume decrease as market moving down

If we analyse the market in details, the markets are trading sideways and consolidating most of the time due to the profit taking activity and filtration process kicks in. It is also called "Bull & Bear" fighting to determine the winner later! Well, everyone knows there are only 2 directions for the market to move, either up or down. In the other way, you have the winning rate of about 50% to get it right only!

If you wish to make money from the market, you have to make a good guess or excellent prediction, meaning that you can see through the future. It is somehow difficult for the experience investor to predict the market movement in the near term as the market is so volatile and can travel between positive & negative zones few times within a day. There are many factors and methods you should consider to increase your winning rate in the stock market. Some of the homework you should be doing are analysing the fundamental & technical perspective, constantly update information about global economy news like GDP, CPI, PPI, Unemployment rate, Inflation rate, etc...

Some of you might feel very frustrating analysing all the information when the market not moving the direction as predicted. In normal circumstances, the market should move up accompanied with positive news, and move down with negative news. This is very common reaction with the simple reason that the market just prefer the positive data and sentiment to support the bull run. However, you may easily find out that the market react the opposite ways occasionally. It is annoying and frustrating if the market always react against the prediction. This is one of the filtration process, to filter out the weaker trader. Do not forget that the market is there to make money out of anyone. A trade is only completed when a buyer price meet a seller price. It means whenever there is a winner, there is automatically another loser out there, otherwise where are those money/capital come from?

Interesting?? I am still in the progress of getting my very personal stock investment checklist completed and hopes will be able to share with you soon. Just make sure you read it and try to utilise the guidelines as much as possible, as it may benefit you to winning the battle!