The stock market is dynamic. With so many factors influencing its movement, it’s not easy to keep track of it all the time – at least not without doing some damage to your health in the long-run.
Sitting in front of your screen constantly, keeping track of the news, and losing yourself in the pool of data – it’s far from healthy. (Of course, there are a few automated trading tools out there now that does make things slightly easier. But they have their own flaws, which is a separate discussion in itself that we’ll touch some other day.)
Talking about health, by the way, we published a post on this subject a few weeks back; on how stock traders can take better care of their health. Give it a quick read: A Health Guide For All The Serious Stock Traders
Coming back to the topic, how to stay ahead of the stock market?
Again, it’s not easy. So many stock traders fail to make decent money from stock trading, let alone staying ahead of the market and building a high-worth portfolio.
However, all said, it’s not something that can’t be done. Or, it isn’t something that’s reserved only for those in the higher echelon.
You can stay ahead of the stock market. You just need to work hard and have patience in the learning phase so to groom and amplify the right skills.
Become a Life-Long Student
Maybe your friends told you this… Or you discovered it somewhere online where you were reading about how to become a stock trader quickly… BUT:
Stock trading is much more than just about “buy low, sell high”. For instance, did you know you can make money even in the bear market by going short? Or did you know you can effectively cushion your losses by using options contracts?
There’s much more to stock trading. But you wouldn’t know that if you’re not ready to learn. Sadly, this is the case with so many stock traders. After understanding the basics, they don’t invest in learning more; in growing themselves as a stock trader. And it’s a big mistake.
If you want to stay ahead of the stock market, the key is to improve yourself every day. This is possible only when you’re open to learning more and more.
Enroll yourself in good share market training courses. Make friends with other stock traders who inspire you to learn more; who share new ideas and insights with you; who initiate new and relevant conversations.
The more you learn, the more skills you will acquire to stay ahead of the stock market.
Keep Up With The News
You can’t stay ahead of it when you don’t know where the market stands in the first place, can you?
Keeping up with the market and all its developments is essential.
So, become an ardent consumer of the news.
Find a few sources of reliable news that deliver quick updates. Set alerts to important updates. Keep an eye on every social, economic, and political aspect that can influence the stock market.
Pro tip: Being a part of a group of stock traders can be of great help there. The exchange of relevant updates will ensure you’re always in sync with the events in the market.
Get Better at Technical Analysis
You can gather all the necessary data and news but what’s the point if you can’t make sense of that?
What’s the point if you can’t use them effectively in making the right trading decision and building your portfolio?
What’s the point if you can’t understand them to analyze the market and make sensible predictions?
This is where technical analysis comes. Looking at the charts is one thing. Understanding them and then using that information for your benefit is completely different.
Learning about technical analysis and its advanced concepts like RSI and other indicators will take you a long way. It will help you understand market trends, analyze the emerging curves, and make accurate predictions.
So, don’t just play around with the basics. Once you have got the good groundwork, take strides to go from being a beginner to a pro. Learn technical analysis. Consume the right resources and materials. Sign up to the right share market training that focuses on advanced theories (and practical).
Staying Ahead of the Stock Market
There’s no single rule to this. There’s no such tip or theory that would help you stay ahead of the stock market.
There’s no single answer to how to stay ahead of the stock market.
It’s an accumulation of so many different things – right from the existing market crisis to your personal goals to your skills. Even intuition plays an important role. If you’re an experienced stock trader, your intuitions can guide you to stay ahead in the game.
So, were you looking for that one secret or hack, sorry to disappoint. There’s no such secret or hack. But there are definitely a few ingredients that are fundamental here: hard work and patience… Hard work and patience to learn and improve your skills on a daily basis.