How to Profit on Trading Stocks in Two Hours or Less
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Trading stocks refers to the buying and selling of shares of a particular business. The simplest formula to succeed is to buy the stocks at the lowest price and sell them as the price point peaks. While trading stocks do carry risk, it is not gambling and requires prior stock market knowledge and experience to make profits. 

Fantasy contests are a fun way to earn some money while trading stocks. For instance, StockBattle is a fantasy trading platform where you can indulge in short contests and bet on your favorite stocks. If you have no clue where to start, you can simply pick stocks you know and see their performance to learn as you go. 

Trading Stocks for Profit

In order to indulge in fantasy trading, you need to learn the basics of trading stocks. Once you know how to read the stock charts and find the right stocks, it will get easier for you to participate in fantasy contests. So, let us have a look at some of the aspects you must focus on if you wish to make a profit on trading stocks in two hours or less. 

Stock Price Chart Analysis

Although fantasy trading takes place in a virtual world, the stats used in the process are real-time. Therefore, you must learn to read the stock price charts accurately. This will help you gain valuable insight into identifying the trends and predict which stocks may perform better. 

The analysis of the stock price chart can give you a competitive edge over other participants. That said, you must adhere to a plan and learn to manage your losses. That's because without a proper plan earning a profit on trading stocks may be a hit and miss scenario. 

For example, in the chart below, you can see that the stock for Apple, Microsoft, Visa and five other companies are showing a green arrow showing a positive trend in their prices. Therefore, they are considerably a safer option to invest in. On the other hand, Proctor and Gamble (P&G) stocks have been on a decline recently, so you may want to stay away from them. 

Stock Price Chart Analysis

Image Source: TradingEconomics

Knowing When to Get in On the Action

Fantasy contests use real-time stock action. Therefore, knowing the time of the day when to get in on trading can help increase your chances of winning. 

The stock markets open at 9.30 am EST, and the best time to trade stocks is within the first hour of opening. This is mainly because this hour offers big price movements in the shortest time possible. So if you wish to get some fantasy trading action, you can use the insight gained from the chart analysis by investing during 9.30 am, and 10.30 am EST. 

Fantasy contests adhere to the stock market opening times. So before the market opens, you can spend some time watching how your selected stocks are performing. Check the recent news related to the stocks and companies and which stocks are going high or low. This way, you can put your money where your mouth is. 

Similarly, the last hour of the stock market is also a popular time that is ideally between 3 to 4 pm. This is when the traders are usually offloading their stocks, and you have more chances of winning. 

Sticking to a Time Frame and Spending Limit 

Overtrading is one reason why most people lose more than they bargained for. Therefore, set a time limit on how long you are going to participate in fantasy trading. Chances are, you will start losing concentration after a couple of hours and make mistakes. Plus, if you have lost too many fantasy contests in succession, it is time to get out. 

Set a limit on how much money you are willing to sacrifice. Remember, fantasy trading is not betting. So think wisely if you wish to make a profit. 

Remember the Risk to Reward

Remember the Risk to Reward (RTR) of 1.5 to 1. This means for every $1 of risk you take, there is a chance to gain $1.50 potentially. If the fantasy trading option does not match the RTR of 1.5 to 1, it is not worth it. Just keep searching for the right fantasy contest that can offer your desired risk to reward ratio. 

Advanced Targets

Suppose you have chosen a highly volatile stock, and you know that the price is going to move quickly. The objective here should be to ensure that the price stays at its highest throughout the duration of the contest. So pick your stocks carefully because too much volatility can hurt you. 

For example, you chose a stock at its highest price of $1, but it has high volatility. You entered the fantasy contest confident of winning, but the price came plunging due to the market's volatility factor by the time the game ended. Therefore be wise or, as they say, choose your (stock) battles carefully. 

Trades with Big Movements 

You must always look for any stocks with significant movements. For example, a stock has a trend of staying high, but suddenly the prices drop. In this case, the chances are that stock will likely pick up again, so investing in it is a great move. 

When the price action gains momentum, you can also ride the pullbacks until its price reaches its highest. For example, in the chart below you can see that the stock price of a company has been stable until there was a considerable dip in the price (circled in green). 

This is your time to get in, because you can see that the previous price trend seems to be up. This means, the price will go up and you will end up making a profit. Note that the price goes up after a sudden dip in the market share. 

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(Photo : Canvasjs)

Image Source: Canvasjs.com

While some people are simply looking to have a good time, others are also after using their market insight and experience and making profits while participating in fantasy contests. Platforms such as StockBattle are fantasy finance platforms that offer you the right fantasy trading opportunity. 

Beware of Choppy Pullbacks

If a stock price has spiked to a new high and suddenly dropped back, you must avoid these stocks. On top of that, if the price is having difficulty coming back to its original price zone, then there is a conflict. 

For example, if a stock price was at $10 and suddenly rose to $13 and crashed as quickly as it went up but came to $10.50, this could be a false breakout. This shows a market conflict between sellers and buyers, and you do not want to be a part of it. Pick stocks with steady price trends. 

Where to Participate in Fantasy Contests

Even as a beginner, you need to have some knowledge and experience about how the stock market works. You can use StockBattle's resources to further strengthen your trading skills. The platform has so many options for fantasy trading that you will develop confidence working with different asset types and build a general understanding of the stock market. 

If you wish to make a profit on trading stocks in two hours or less, fantasy trading contests can help you in the following areas to earn extra income in no time:

  • You can learn how to read stock graphs and price charts

  • You can learn how the assets' prices move and read their performance

  • You will be able to understand what low and high volatility looks like

  • You will be able to learn to identify assets that are best for short-term performance, i.e., the duration of your fantasy contests. 

  • You will be able to learn how general news and other corporate events have the power to influence the price of stocks. 

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