Develop your own watch list (when you trade several stocks)

Trading stocks require a lot of attention from a person, who takes part. You need to watch all the stocks, their movement and price changes. Some trading professionals (like the author of TradingSim blog) advise to follow them on a daily basis. But due to a large number of all stocks, he also adds that it would be better for you to focus on some certain sectors, like banking, retail, Internet, automotive, pharmaceuticals, etc. Paying attention to one or two sectors may be great for you: you will notice all the changes clearly. As a result, you will be able to make your own forecasts and trade with profit.
The specialists, who use this strategy, also claim that you need quite a lot of time for getting some results in this. As an author of TradingSim says, he needed several months to watch for the golden sector, for the gold-mining companies, which were presented on the gold market. During these months, he got an experience in understanding how the market works, how the prices change and how are they dependent. Simply following some sector allows understanding all the basics, required for successful trading.

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