Understanding the Bulls and the Bears
If you've ever flipped on the television to CNN Financial or paged through the finance section of your local newspaper, you may have seen or heard references made to "the bulls and the bears." If you didn't know what was meant by those terms, you're about to find out. I will tell you up front that they were not talking about basketball and football franchises based in Chicago.
"The bulls and the bears" refers to the performance of the stock market. In the most general terms, "ups" are bulls and "downs" are bears. If the stocks and funds in which you have invested have a "bull" day, you're probably one happy camper. You made money. If, on the other hand, it's been a "bear" day, you're probably not going to be feeling too chipper. Remember that no one has much cared for the Bears (save people in Chicago, of course) since 1986 and the days of Walter Payton, William "Refrigerator" Perry, and The Super Bowl Shuffle and you're on the right track.
No one knows for sure where these terms originated, but they are definitely related to the behavior we associate with these animals. Bulls and bears display uniquely opposite attitudes and behaviors. Bulls will charge ahead bravely or angrily at anything that catches their interest while bears are, by nature, more timid and cautious creatures (although I wouldn't recommend approaching one in the wild, regardless) who will move slowly and investigate a situation before taking action. The way that these relate to a "bull or bear" market is evident. When the market is having a strong upswing and is charging ahead by leaps and bounds, it is having a bull run (no, this has nothing to do with the Civil War). When it's on a steady decline, obviously, it's experiencing a bear run (not the Native American who loved Little White Dove, according to the song. That was Running Bear which, I'm told, is far too chilly in the winter ? especially in Chicago.)
In all seriousness, however, the bulls and the bears of the stock market have a profound effect on investors, often making or breaking a person's financial future in one day. The wise investor will pay close attention to the market's bull and bear activities and invest accordingly.
Investment Tips by Mika Hamilton ? Read more free investment tips, tutorials & reviews at http://www.Global-Investment-Institute.com
One Way Street
Ever turn down a street, get half way and suddenly realize it is one way and you are going the wrong way? Is that the way you feel when you look at your stock brokerage statement?
Are you one of those many people who dread reading their 401K statements? You have been watching it decline for about 2 years and are wondering if will ever stop. Just about everyone says the market will come back. Brokers say you are in for the long haul so don't worry. Any account that drops to a 50% loss has to go up 100% to get "even" and that is a very difficult phenomenon. If you have an 80% loss as has already occurred in the Nasdaq you would need a 400% rally to get "even". At 90% you have to see a 900% rise to that mythical "even".
Planning Your Dive and Diving Your Plan ? Trading!
A colleague of mine just returned from a scuba diving trip inCozumel, which just happens to be one of my favorite places todive. Anyway, she was telling me about an unexpected difficultyshe encountered while swimming around the corral reef down about85 feet. It wasn't anything serious but her story reminded me ofsomething my scuba instructor used to say over and over again."Plan your dive, and dive your plan".
Does Japan Matter?
For the last 12 years we have seen the Japanese stock market slowly sinking from a high of 38,000 to about 8,000, more than a 75% loss and very close to the price of the Dow Jones Industrial Average. Why should we care about their stock market?
I know there are a lot of you out there who would like to "get even" with the stock market. Many are on the diet of "I hope, I hope". As a professional trader I can tell you that diet will make you very sick.
What is a Trading Plan ? and Why You Need One?
How do you make money without picking tops and bottoms?
Forecasting the Stock Market
Every day I see in the financialsection of newspapers how to forecast what themarket will do in 6 months, 12 months, severalyears. "Ten stocks that will double in the next 6months." Right! I have trouble trying to forecastwhat it will do tomorrow. Do not trust any whoclaims he knows what the future will be for themarket.
Buying Mutual Funds
It looks like the market is ready to start up again so it is time to buy mutual funds, but you only want to invest your money in funds that go up. First, you don't want to start with a loss so be sure to purchase no-load mutual funds. There is no need to ever pay commissions as there are several thousand funds that have no commission whatsoever for either buying or selling.
The Stock Market Investor?s Worst Enemy
Every stock market investor faces one primal enemy. An enemy so perverse, it will drive thousands of investors from the stock market through its ability to defeat even the most practiced investment strategy. Who is this enemy you ask? Your arch nemesis, in this case, goes by the name E. Motions?don't ask me what the "E" stands for.
Is Active Trading The Answer?
One of the main reasons many of us get into investing is to become financially independent. Who isn't trying to amass a portfolio with enough income to ensure that we don't have to work when we should be playing golf or traveling the world. While there are several strategies to invest, is active trading one of the ways to become a millionaire?
Why the Majority Fail at Stock Investing
The gleam and bright lights of Wall Street lure in many new investors each year, only to send them home crying to their friends and family. Why do so many people fail when it comes to the stock market? The reason is very simple: Hard work! Most people are looking for a quick buck or a fast path to riches. This is not the case when it comes to investing in individual stocks. If you wish to invest in stocks, treat it like a business, NOT A HOBBY. For example: A retail outfit can't make money if it doesn't have goods to sell, the same goes for investors, without cash, you can't invest. What do I mean? All investors need rules and you need to follow these rules or money WILL be LOST. If you lose your initial investment, you are out of business (just like the retail store). I don't necessarily care what your rules are but they need to be proven and then followed to a "T".
Stock Market Diversification
In one of my previous articles (Investing in the stock market -9 powerful tips), tip number one was:
Alfred E. Newman
What! Me worry?
If you have talked to a stock broker or financial planner in the last few days I will bet they all agree that there are some great bargains out there and now is the time to start buying in anticipation that the market will go back up. You will also find agreement from the talking heads on CNBC and those talk radio station stock mavens. No one says sell. It looks like bottom pickers heaven.
Being Wrong Buying Stock is Okay
Being wrong is OK, but let's not carry it to extremes. That applies to everything, but let's limit our discussion here to the stock market.
I Love To Lose Money
Well, not really. What I mean is I don't mind losing a small amount when I have to sell a stock or mutual fund that is going down or taking away the profit I have made. During this past 3 years I have made money each year because I was not afraid to sell. The great secret that Wall Street does not want investors to know is all about selling, not buying.
On Line Stock Trading: Small Cap & Micro Stocks Go Up and Down - How Can You Profit?
Success in small cap & micro cap stock trading like with any other business in life comes from being able to see the big picture and from paying attention to the small details.
How We Eluded The Bear Of 2000
The date October 13, 2000 will forever be embedded in my mind. It was the day after our mutual fund trend tracking indicator had broken its long-term trend line and I sold 100% of my clients' invested positions (and my own) and moved the proceeds to the safety of money market accounts. Some people thought we were nuts, but I had come to trust the numbers.
How to Make Big Money Safely in Stock Market
(1) Stock Market is Tough Place to Make Any Money Consistently
Buy and Hold: How to Perpetuate Your Investment Losses
A recent cartoon in my daily newspaper showed two guys sitting in a bar. One is saying to the other: "I did learn something from my broker...how to diversify my investment losses."
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