Timing is everything! Especially when it comes to learning how to trade in the stock market. The thought process a lot of students go through when it comes to trading is amazing.

First, you do NOT have to have all your money in the market at all times to make a fortune trading.

Second, you should not have all your trading funds in the market at all times ever!

Third, wait for a stock to come to you. Wait for it to be done falling to play the upside, or done going up to play the downside - but don't enter in the middle of nowhere on a trade.

UPSIDE:

Wait for the stock to stop falling. You might want to wait for a market close doji or open candlestick at support as a sign it may have stopped. However, it is critical to confirm it with a continuation pattern the next trading day. The next day if the stock continues up I you may consider entering the trade intra-day for the upside.

DOWNSIDE:

Wait for a sign that the stock has stopped rising, a market close doji or closed candlestick at resistance as my sign it may have stopped going up. Remember I you still need to confirm it the next day. The next day if the stock continues to fall, I you can enter the trade intra-day to play the downside.

OTHER CONCERNS:

Of course you want to look at other trading indicators to confirm direction… and there are a lot you could pick from. Here are some commonly used technical indicators:

1. Support and Resistance
2. Using candlesticks with number 1
3. Volume
4. Exponential Moving averages 4 & 8
5. Bollinger Bands