Source- "Stock Market Crash." 2006. http://www.stock-market-crash.net/what.htm
Stock Market crashes always start with " Smart Money" ( corporation, big businesses, and smart investors) and end with " dump money"( average investor). What happens is when the stock market is low, big corporations and smart investors will buy a good bit of stock. Once these corporations buy these stocks, they'll start rising gaining interest from mutual funds, brokerage firms, and some smart investors. Once all these mutual funds and brokerage firms start buying the stocks they rise a little more a start making the everyday investor look more and more at these specific stocks. Once this happens a bull market is created. All investors start putting all their money into these stocks because they think they're great and will keep rising and everything is great. At this time all the "Smart Money" people are selling all those cheap stocks they bought when the market was low to the small investors who are buying at a ridiculous prices because they think the market will keep rising, what makes it worse is they'll buy on margin trying to greater increase capital.
So what happens now is the crash. Once the stock market reaches it's high it has gotten all the investors it's going to get and they have spent all the money they can in the market. So now there is no more money going into the market, it is at it's absoloute high, so the only way to go is down. Once the media catches on there's no more money everyone starts selling there stocks immediately. Once this starts to happen everyone gets nervous about buying stocks for awhile and all the people who bought on margin can't sell there stocks putting them more and more in debt. So eventually all the stock prices drop back down to dirt cheap and everyone's broke except the people who invested at the begginining when it was cheap. Well guess what, after the crash the markets cheap again and the companies buy the stock once again and renew the whole process again and again. taking all the small investors money.
Tuesday, February 12, 2008
Day Trading
Source- http://jobsearchtech.about.com/od/careerplanning/l/aa032999.htm
Day trading is exactly what it sounds like. It's trading stocks constantly day by day. Day traders aren't investors, they are traders. They spend every hour the market is open glued to a computer watching every cent a stock rises or falls trying to decide the absoloute best time to sell, trade, or buy. Many day traders will only hold stock's just for minutes hoping the stock will go up just a few cents so they can make a nice little return.
"For example, at 10:00 AM a day trader might buy 1000 shares of stock XYZ just as the price begins to rise on good news, then sell it at 10:04 AM when it's up by 1/2 ($0.50). The day trader makes $500, minus commission. With today's cheap commissions of $29.95 or less per trade, that's a quick $440.10 or better, excluding taxes."
There are some day traders who trade up to 100 stocks a day. They are called SOES bandits. They will usually never hold a stock overnight and might only hold a stock for a few seconds.
Day trading is exactly what it sounds like. It's trading stocks constantly day by day. Day traders aren't investors, they are traders. They spend every hour the market is open glued to a computer watching every cent a stock rises or falls trying to decide the absoloute best time to sell, trade, or buy. Many day traders will only hold stock's just for minutes hoping the stock will go up just a few cents so they can make a nice little return.
"For example, at 10:00 AM a day trader might buy 1000 shares of stock XYZ just as the price begins to rise on good news, then sell it at 10:04 AM when it's up by 1/2 ($0.50). The day trader makes $500, minus commission. With today's cheap commissions of $29.95 or less per trade, that's a quick $440.10 or better, excluding taxes."
There are some day traders who trade up to 100 stocks a day. They are called SOES bandits. They will usually never hold a stock overnight and might only hold a stock for a few seconds.
the stock market
Source- Stock Market. Febuary 23, 2008. http/:en.wikipedia.org/wiki/stock_market
Trading
trading is done by an auction market. Which means a potential buyer asks to buy a stock at a specific price from a potential seller. Once they both settle on a price an exchange is then made. Buying and selling generally is done on a floor or on the computer. Buying an selling on the floor is done by outcry ( screamning out an offer or a price.) and that's how trades are made on the floor. On computer stocks are traded and bought using the internet, it's pretty simple.
"The New York Stock Exchange is a physical exchange, also referred to as a listed exchange — only stocks listed with the exchange may be traded. Orders enter by way of exchange members and flow down to a specialist, who goes to the floor trading post to trade stock. The specialist's job is to match buy and sell orders using open outcry. If a spread exists, no trade immediately takes place--in this case the specialist should use his/her own resources (money or stock) to close the difference after his/her judged time. Once a trade has been made the details are reported on the "tape" and sent back to the brokerage firm, which then notifies the investor who placed the order. Although there is a significant amount of human contact in this process, computers play an important role, especially for so-called "program trading"."
"The NASDAQ is a virtual listed exchange, where all of the trading is done over a computer network. The process is similar to the New York Stock Exchange. However, buyers and sellers are electronically matched. One or more NASDAQ market makers will always provide a bid and ask price at which they will always purchase or sell 'their' stock."
These are the two main stock exchanges that Americans buy, sell, and trade stocks in. As you can see, the New York Stock Exchange is done more of an old- fashoin style and The NASDAQ is just all on computers.
The Stock Markets Importance
The stock market is extremely useful because it gives companies ways to raise money to make capital, and give business's to go public and make lots of money. The Stock Market usually represents how the economy is going also, and how much the normal household has.
One really attractive reason to invest in stocks is you can quickly get rid of anything you don't want to invest in anymore, unlike other investment options like real-estate.
Trading
trading is done by an auction market. Which means a potential buyer asks to buy a stock at a specific price from a potential seller. Once they both settle on a price an exchange is then made. Buying and selling generally is done on a floor or on the computer. Buying an selling on the floor is done by outcry ( screamning out an offer or a price.) and that's how trades are made on the floor. On computer stocks are traded and bought using the internet, it's pretty simple.
"The New York Stock Exchange is a physical exchange, also referred to as a listed exchange — only stocks listed with the exchange may be traded. Orders enter by way of exchange members and flow down to a specialist, who goes to the floor trading post to trade stock. The specialist's job is to match buy and sell orders using open outcry. If a spread exists, no trade immediately takes place--in this case the specialist should use his/her own resources (money or stock) to close the difference after his/her judged time. Once a trade has been made the details are reported on the "tape" and sent back to the brokerage firm, which then notifies the investor who placed the order. Although there is a significant amount of human contact in this process, computers play an important role, especially for so-called "program trading"."
"The NASDAQ is a virtual listed exchange, where all of the trading is done over a computer network. The process is similar to the New York Stock Exchange. However, buyers and sellers are electronically matched. One or more NASDAQ market makers will always provide a bid and ask price at which they will always purchase or sell 'their' stock."
These are the two main stock exchanges that Americans buy, sell, and trade stocks in. As you can see, the New York Stock Exchange is done more of an old- fashoin style and The NASDAQ is just all on computers.
The Stock Markets Importance
The stock market is extremely useful because it gives companies ways to raise money to make capital, and give business's to go public and make lots of money. The Stock Market usually represents how the economy is going also, and how much the normal household has.
One really attractive reason to invest in stocks is you can quickly get rid of anything you don't want to invest in anymore, unlike other investment options like real-estate.
Monday, February 11, 2008
Stock Market Basics: Learning without Losing.
Thomas, Dwain Mandell, Phyllis Levy. School Library Journal; March 2004, Vol.50 Issue 3, p75-76, 2p. "Stock Market Basics: Learning without Losing."
Author- Thomas, Dwain1Mandell, Phyllis Levy
Source- School Library Journal; Mar2004, Vol. 50 Issue 3, p75-76, 2p
" 50 percent of Americans families currently own stocks"
This is something to look at when deciding on wether you should invest or not. It's clear to see that the market as gradually risen so as long as your cautious with your money and put it in good long term stocks, you'll make good money over the years.
Author- Thomas, Dwain1Mandell, Phyllis Levy
Source- School Library Journal; Mar2004, Vol. 50 Issue 3, p75-76, 2p
" 50 percent of Americans families currently own stocks"
This is something to look at when deciding on wether you should invest or not. It's clear to see that the market as gradually risen so as long as your cautious with your money and put it in good long term stocks, you'll make good money over the years.
Book Review: Why Stock Markets Crash: Critical Events in Complex Financial Systems. Didier Sornette, Princeton University Press, Princeton, 2003.
Porra, Joseph M. "Why Stock Markets Crash: Critical Events in Complex Financial Systems."
Author- Porrà, Josep M. Journal of Statistical Physics; Nov2004, Vol. 117 Issue 3/4. p773-774, 2p.
" The build up of financial bubbles manifest itself as an overal super-exponetial Power-Law acceleratin in the Price Growth Accompanied by long periods of oscillation."
Basically, what he's saying here is bubbbles in the stock market are always the source of a crash in the stock market.
Author- Porrà, Josep M. Journal of Statistical Physics; Nov2004, Vol. 117 Issue 3/4. p773-774, 2p.
" The build up of financial bubbles manifest itself as an overal super-exponetial Power-Law acceleratin in the Price Growth Accompanied by long periods of oscillation."
Basically, what he's saying here is bubbbles in the stock market are always the source of a crash in the stock market.
Book Review: Why Stock Markets Crash: Critical Events in Complex Financial Systems. Didier Sornette, Princeton University Press, Princeton, 2003.
Book Review: Why Stock Markets Crash: Critical Events in Complex Financial Systems. Didier Sornette, Princeton University Press, Princeton, 2003.
Author-
Author-
The Investor's Guide to Technical Analysis
C. Colburn Hardy. Stock Market Theories. New York: McGraw- Hill, 1978
Author- C. Colburn Hardy
Publisher- McGraw- Hill Book Company
New York, St. Louis, San Francisco, Auckland, Bogota, Dusseldorf, Johannesburg, London, Madrid, Mexico, Montreal, New Delhi, Panama, Paris, Sao Paulo, Singapore, Sydney, Tokyo, and Toronto
Copyright 1978
Stock Market Theories
The most Popular Theories in the Stock Market is the Dow Theory.
" To Dow, THe Stock Market Wasa Barometer of Business. His theory calls the turns of the market and forecasts the business cycle or longer periods of prosperity or depression. Under his concept, there are two major movements of the stock market: the Primiary movement, which last usually 23-33 months or longer, and the secondary movement, which usually last from three weeks to three months and, during this period, retraces one-third to two-thirds of the previous market action- the advances in a Bull Market, the decline in a Bear Market."
Their are many doubters to the Dow Jones Thoery. Many don't like it because it's out-dated. It uses Closing Prices which aren't that accurate because the price may change a lot here and there through the day.
How to Find Winning Stocks
1. Review Weekly Charts.
2. Check the Weekly Stock Market tables.
3. Watch the DAily and Weekly highs.
4. Py special attention to most active stocks.
5. Study the group stock averages.
6. look at the overall stock market.
Author- C. Colburn Hardy
Publisher- McGraw- Hill Book Company
New York, St. Louis, San Francisco, Auckland, Bogota, Dusseldorf, Johannesburg, London, Madrid, Mexico, Montreal, New Delhi, Panama, Paris, Sao Paulo, Singapore, Sydney, Tokyo, and Toronto
Copyright 1978
Stock Market Theories
The most Popular Theories in the Stock Market is the Dow Theory.
" To Dow, THe Stock Market Wasa Barometer of Business. His theory calls the turns of the market and forecasts the business cycle or longer periods of prosperity or depression. Under his concept, there are two major movements of the stock market: the Primiary movement, which last usually 23-33 months or longer, and the secondary movement, which usually last from three weeks to three months and, during this period, retraces one-third to two-thirds of the previous market action- the advances in a Bull Market, the decline in a Bear Market."
Their are many doubters to the Dow Jones Thoery. Many don't like it because it's out-dated. It uses Closing Prices which aren't that accurate because the price may change a lot here and there through the day.
How to Find Winning Stocks
1. Review Weekly Charts.
2. Check the Weekly Stock Market tables.
3. Watch the DAily and Weekly highs.
4. Py special attention to most active stocks.
5. Study the group stock averages.
6. look at the overall stock market.
Fortune's Guide to Personal Investing
Editors of Furtune. Fortune's Guide to Personal Investing. New York: McGraw-Hill, 1962-1963
Copyright 1962,1963
By the Editors of Fortune
Mcgraw-Hill Book Company, Inc.
New York, Toronto, and London
Brokers
Not all Stock Brokers are good, some are bad. Even though it's illegal for stock brokers to advertise that they can make trades faster, some Brokers can. Because some Stock Brokers are so big they can have more representatives on the Floor at the Stock Exchange giving them a better chance to get the stocks faster, or get rid of the stocks faster. So when looking for a stock Broker you usually don't want to go with a new smaller firm. It's generally best to go with a bigger Broker.
" The number of men afirm as on the floor does matter to the customers, and sometimes it matters a lot- e.g. When a sudden new development inspires investors all over the US to ask their brokers to buy a stock, the first orders executed might be at a lower price than the later orders."
Copyright 1962,1963
By the Editors of Fortune
Mcgraw-Hill Book Company, Inc.
New York, Toronto, and London
Brokers
Not all Stock Brokers are good, some are bad. Even though it's illegal for stock brokers to advertise that they can make trades faster, some Brokers can. Because some Stock Brokers are so big they can have more representatives on the Floor at the Stock Exchange giving them a better chance to get the stocks faster, or get rid of the stocks faster. So when looking for a stock Broker you usually don't want to go with a new smaller firm. It's generally best to go with a bigger Broker.
" The number of men afirm as on the floor does matter to the customers, and sometimes it matters a lot- e.g. When a sudden new development inspires investors all over the US to ask their brokers to buy a stock, the first orders executed might be at a lower price than the later orders."
Thursday, February 7, 2008
Brave New World- Volume Two
I've now Gotten to the point in the book when the plot is starting. At first the book was just explaining all about the new world A.F. (after ford), but now the plot is starting to unfold.
So in the story there is the main character Brenard. He is pretty much a loser. He is pretty much the outkast of the whole new world A.F.. He likes this girl named Lenina, she is pretty much as normal as anyone in the world A.F.. For someone reason Lenina likes Brenard and thinks he is interesting.
Brenard decides he wants to take Lenina to The Reservation. The Reservation is basically like an indian reservation, except the indians are actually really living the indian life. So once he takes her there he meets this mixed boy named John and his mom Linda. Brenard becomes facinated with there way of life, because he himself is somewhat of an individual. Lenina on the other hand is really appauld by indians and thinks they're savages. Once Brenard is there and talks to the boy and his mom for a while he realizes that the boy is the son of the Director, and that's where I'm at now.
I think it's really funny in this book how disgusted everyone from the world A.F. gets when they see things like mothers and fathers taking care of their kids. Lenina was constantly freaking out when she was at the reservation. It's also funny how they thing it's so weird that someone would want to sacrifice something to gain something e.i. trying and trying your hardest for a girl who might never like you.
So in the story there is the main character Brenard. He is pretty much a loser. He is pretty much the outkast of the whole new world A.F.. He likes this girl named Lenina, she is pretty much as normal as anyone in the world A.F.. For someone reason Lenina likes Brenard and thinks he is interesting.
Brenard decides he wants to take Lenina to The Reservation. The Reservation is basically like an indian reservation, except the indians are actually really living the indian life. So once he takes her there he meets this mixed boy named John and his mom Linda. Brenard becomes facinated with there way of life, because he himself is somewhat of an individual. Lenina on the other hand is really appauld by indians and thinks they're savages. Once Brenard is there and talks to the boy and his mom for a while he realizes that the boy is the son of the Director, and that's where I'm at now.
I think it's really funny in this book how disgusted everyone from the world A.F. gets when they see things like mothers and fathers taking care of their kids. Lenina was constantly freaking out when she was at the reservation. It's also funny how they thing it's so weird that someone would want to sacrifice something to gain something e.i. trying and trying your hardest for a girl who might never like you.
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