There are millions of people who try hard every day to make money from trading stocks; unfortunately 95% of the people consistently lose money. It is not as if only inexperienced traders lose money even the professional traders lose money, of course their losses are small compared to new traders.
The stock market is a strange place, the behavior of stocks is even stranger, sometimes it happens that the stock actually surges after the negative news flow, and sometimes the stock falls even when there is positive news. People fail to recognize that the stock market is driven by emotions, the emotions governed by fear and greed. People fail to understand the basics of a stock market. If it was so easy to traders talk based on the news the markets would not be intriguing. Thousands of books have been written about the art of stock trading and yet the fact is that trading in stocks remains a mystery.
Every trader has his own trading style, every trader manages his risk differently, the bottom line is that a person wants to trade in stock must have a proper risk management strategy in place. Trading without planning is like committing suicide. It is a perfect gateway to lose the precious trading capital.
Some people spend hours and hours learning technical analysis, but as pointed out earlier markets have their own behavior. In volatile market even technical analysis fails to save a person from going bankrupt. No supports or no resistance holds during volatile times. In fact most of the time the technical analysis fails to generate enough profit for a trader leaving him dejected.
It is very painful to see a person lose his precious trading capital just because of ignorance. Instead of trying to find the Holy Grail of profits, it would be prudent to learn the inside and outs of the stock market. It will save the precious capital that would otherwise be lost due to the wrong decisions taken out of fear and greed.
A person must remember that no trading system is perfect, no system is going to win all the time but a good system will help to make consistent profits over the period of time. It is indeed possible to make a living trading stock; all a person needs is patience and the ability to learn. The more time a person spends learning the fluctuations the more his chances of winning and mastering the markets.
Kalpesh Maniar is a professional trader having more than 15 years experience in trading stocks, you can reach him at http://www.kalpeshmaniar.com/. He even offers professional trading course that can help you succeed in stock trading.