DIY cookbook 1. How to stop losing money in stock market.

Losing money in stocks is of great pain. Let me tell you some easy things that you can do to know when to sell a stock, before you lose big.

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Have you seen a technical chart of a stock. It’s very easy to read. Check the movement of the stock price. Is it upward , downward or moving sideways? This movement path is called the trend of the stock. Once you have detected a trend draw a trend line joining at least 3 bottoms. Now anytime your stock breaks the line and starts moving downwards it is time to sell. In the picture above if your stock breaks approximately 33 and moves below the line you sell. In this case it is of course a short term call, maybe a few days or a week.

We used Big Charts.com to draw this chart.

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