Tag: stocks

All stocks related articles are found here. Educative, informative and written clearly.

  • How To Read A Stock Charts With Examples?

    How To Read A Stock Charts With Examples?

    How To Read A Stock Charts? 7
    Amateur traders act upon impulses and this is a problem because all is not as it seems in the market.

    By Guy Avtalyon

    Stock charts are extremely important. When you enter the stock market, which means that you bought your first stock, you will find that you have to follow the movement on the stock market through stock charts.

    First of all, you have to register that fund managers and big investors account for 80% of all trading activity in the market. Their buying and selling will either push your stock up or down. But you are the individual investor and your primary intent is to buy stocks big investors are buying ponderously and of course, you want to stay away from stocks they’re aggressively selling. That’s where charts enter. Once you know what to look for, you’ll see that charts literally show you what these big investors are doing. You’ll be able to fast realize when a stock is being ponderously bought or sold. You’ll be able to use that information to identify the best time to buy, sell, or hold your stock positions.

    There are many different types of stock charts: line, bar, candlestick, mountain, point-and-figure, and others. You can see them in different time frames: daily, weekly, monthly, and intraday charts. Even each style and time frame has its advantages and disadvantages, all of them provide you information important to make investing decisions.

    Also, there are many different types of stock charts that display various types of information. But all stock charts display price and volume. On each stock chart, the price history is visible. The bars represent the amount of trading history.
    For example, on a daily stock chart, each price bar shows the prices the stock traded during that day. On a weekly stock chart, each price bar represents the prices the stock traded over that week.

    The length of each vertical bar shows a stock’s high/low price range. The top of the bar shows the highest price that is paid for the stock per period and the bottom of the bar shows the lowest price paid. The small horizontal slash shows the current price or where a stock closed at the end of the observed period. The price bar is blue if the price of the most recent trade is equal to or greater than the previous period last price, or deep red if it is lower than the previous period’s price close.

    The vertical lines at the bottom of the chart show the number of shares traded during the observed period of the chart. The length of the volume bar shows a value that corresponds to the scale at its right. The color of a volume bar is determined by its corresponding price bar. It’s blue if the most recent trade is equal to or greater than the previous period’s last trade. And magenta if it is less than the previous closing price.
    Well, you are beginners so it is important to show you step by step how to read charts.

    You can use different websites but I think that Google Finance has a smooth user interface.

    How typical stock chart look?

    Now let’s take a look at a typical stock chart. We used Dow Jones Industrial for this guide.

    You can see, the series of letters after the name of the company is the ticker symbol. It identifies the company on the stock exchange.

    We’ll search for AAPL, which is Apple’s ticker symbol.  

    How To Read A Stock Charts? 6

    Then, click the button to expand the chart to full screen:

    How To Read A Stock Charts?
    Now let’s jump into the different pieces and parts of the stock chart so you can begin to read like a pro.

    How to identify the trend lines?

    This is that blue line you see every time you hear about a stock! It’s either going up or down right? The trend line seems like common sense, but there are a few things I want to show so you can understand it in a little more detail.

    You know that stocks will take huge dives and also make huge climbs. If you’ve read previous chapters you’ll know that you have to hold your emotions in control to be a successful investor.

    Never react to large drops or huge gains in a positive or negative way. You are using this piece of the stock chart only to see what’s going on.

    The trend line should motivate you to dig further. For instance, Apple as a company really took off from 2009 to 2012. But in the period 2012/2013, the stock began to go down more than 40%!  This is where your trend line is useful.

    Something is happening and you have to pay attention to it. You have to find out what’s going on with this company. Most strong companies can recover from hits like this, but you have to be careful.

    I have to recall some history here. Right around this time, Apple experienced a few major changes. First, it’s longtime CEO, Steve Jobs, resigned (2011). Also, around 2012, Apple informed that their profit margins were significantly decreasing, despite the growing smartphone market. They were trying to expand the smartphone into developing countries, but they were too expensive to enter there. And the stock price is falling.

    But new CEO Tim Cook made strategic moves with the company and the rest of the trend line shows that.

    How to use trend lines?

    The lesson here is how to use your trend line as a first peek, an indicator of something worth to look int

    The next thing you have to look at is the lines of resistance and support.

    These are levels at which the stock stays within, over a certain period of time. A level of support is a price that a stock is unlikely to drop below, while a level of resistance is one that it’s unlikely to go above. It will stay the same until some major change occurs, such as a reduced profit margin.

    A stock’s price does the same thing within these lines of support and resistance.

    The point here is to know when to buy and when to sell.

    Take a look at Apple’s stock chart again:

    I want to show you how the process is important. You have to know that everyone will draw lines of resistance and support differently, depending on how long they plan to hold the stock. Short-term investors can draw more to analyze trends during a shorter period.

    So, what we can see in this image?

    How to recognize the support and resistance levels? 

    Line A represents the very first line of support shown. Based on trends earlier to this, everyone feels comfy that the stock price won’t go below this point and probably consider buying at this price or higher.

    Line B is the first line of resistance. It is obvious that the stock has peaked at that point for now and it is expected to go higher. Maybe it’s time to consider selling at this price or slightly lower.

    Line C shows, the stock has bottomed out again, thus creating a new line of support.

    Line D shows the stock price has increased significantly and it’s comfortable to establish this as a new line of resistance.

    The trend continues with Lines E, F, G, and H, bringing new lines of support and resistance as time goes on. If it seems complicated, don’t worry. because it is. And a lot of these are speculations.

    The lines of resistance can help you to decide when to buy or sell. But remember, it’s subjective and it won’t give you a clear opinion of what to do. You have to use some of your own analysis and evaluation.

    How to notice in the stock charts if the company pays dividends?

    On the next chart, you can see if and when the company issued a dividend, as well as if there was ever a stock split:

    How To Read A Stock Charts? 4

    A dividend is when the board of directors decides to give a portion of its earnings back to its shareholders. If you own their stock, you get a small piece of the profit.

    Some companies issue dividends, some don’t. If a company doesn’t issue a dividend doesn’t mean it’s not worth investing in.

    Some companies just prefer to focus on growth, so they’ll reinvest their earnings as opposed to giving it back to the shareholders. Apple, in this case, could pay dividends quarterly without influence on growth.

    Also, you can see that there was a stock split in 2014. That is a strategic move made by the company’s board of directors to issue more shares of stock to the public.

    In this case, Apple did a seven to one stock split, noted as 7:1, which means that for every share of AAPL shareholders owned prior to the split, they now have seven.

    The value of the company doesn’t change, but the share price might. Companies will often do this to attract smaller investors when the share price decreases.

    Many times when a stock split happens, more people invest because the share price is often lower. That increases demand and the overall share price.

    How to find the trading volume in the stock charts?

    On the bottom of the chart, you can see many small, vertical lines. This is a trend of the volumes at which the stock is traded. Volumes shouldn’t be the only determining factor when buying a stock. Usually, trading volumes increase when the company is in public focus, in a positive or negative sense.

    When volumes are increasing, it can also shift the price of the stock quickly. Take a look.

    How To Read A Stock Charts? 5

    Line A, shows a high volume of trading activity that corresponded with a drop in the stock price. Maybe some bad news that day caused people to panic.

    Line B, you can see a slight uptick in trading volume that corresponds with an upward trend in the stock price.

    You shouldn’t necessarily have to assume it there will be a connection between stock price and trading volume. But it’s good to know what the volumes have been in the past and what they are currently.

    If the volumes are high, a lot of people are trading the stock that day and it is a good idea to buy or sell it quickly.

    This is the basics of how to read the stock charts. Once you’ve mastered most of these techniques, you should be able to analyze a stock’s historical activity with high success. 

  • Earn a million! How and what you can do?

    Earn a million! How and what you can do?

    2 min read

    How to earn $1 million? 1

    If you earn a million dollars that will change your life for sure. But how to earn a million? Is that amount enough for some changes?

    On some point in life, everyone asks themselves how much money would dramatically change their life.

    It can be a tricky question but also a subject of serious consideration.

    We all know some story about lottery winners and how much money they got and how fast they spent all. Easy come, easy go, some may say.

    Million would change someone’s life.  Several million everyone’s. Remember, everyone’s.

    Most people won’t see a small part of that money in their lifetimes. Some of us play the lottery and have a hope that one day the luck will hit us. That a dream and there is nothing bad in having dreams.

    But what can we do in reality? How much money would you consider “life-changing”? This question is worthy of economic consideration. 

    If you suddenly earn $1 million more economists say not as much as you might think.

    You have to pay taxes on it and for sure you have some loans and outstanding debts to pay off. Speaking about me, if I were to win $1 million tomorrow, I’d definitely still keep working at my current job. One million bucks are not enough to change my entire life. Or anyone else’s. Maybe I’d spend a little bit of a vacation, and then I’d put the large amount of it in savings.

    Actually, it isn’t so hard to earn millions

    But let’s take a look at how much money is needed for a month of decent living.

    Most of us are spending as little as possible and saving as much as possible. But this isn’t the point. Point is to set realistic goals and understand your own financial position.

    How to earn $1 million?Start with this number. Do you know what your life costs right now? Do you have a mortgage or you pay rent? How much do you spend on essentials, from food to clothes to insurance to annual fees, every month? And don’t forget to account for inflation over the long term.

    Then you have to figure out how much it will cost you to get out of debts, from balances carried on personal credit cards to car payments to student loans. The first number figure that would change your life is the amount it would cost you to pay off all debt on depreciating assets. That’s your first number.

    But your debt on depreciating assets isn’t an investment. Your car for sure will not get more worthy over time. It will not increase its value. That why this kind of debt is classified as bad debt.

    Let’s go further to earn a million

    Now, you have to figure what is the amount of money that you would need to pay off all debts on appreciating assets. It’s classified as good debt, because underlying assets like house or land, tend to increase in value over time.

    But you’d still probably have to work to maintain your lifestyle. The third number is the amount it will take to produce little more than you need every year without touching the principal of your investment. That’s the third number.

    Anyway, you need at least $50,000 a year to maintain your lifestyle. You go out to eat, take a vacation, buy new shoes, and pay your property taxes.

    How much capital do you need to invest to generate $50,000 every year after taxes and inflation?

    How to earn $1 million? 2Let’s say you don’t want a risky investment, so you rather stay away from stocks. If you put your money in bonds, you might get a more stable return. If you looked for municipal bonds, you probably wouldn’t have to pay federal or state taxes. Suppose you can find a good portfolio of municipal bonds paying a 4% annual return. That’s an acceptable rate and a safe investment and probably even avoids taxes. For that $50,000 you need a principal amount of $1.25 million dollars. 

    Let’s say you can save an extra $15,000 per year if you pay off debt on depreciating assets in one leap and $18,000 per year on appreciating assets. And you have no debt for the next 40 years. WOW, you would have $1,320,000.

    A million is a lot of money, but it’s also not an unreasonable amount of money.

    It’s not lottery jackpot money. If you work hard, save well, and invest well, that amount is within your reach during your lifetime.

    To make things clear, it is so fun to have dreams. But this doesn’t have to stay as a dream. 

    Creating a million dollars in one shot to do everything may never happen. But what you can do? You can make progress onto all three goals. You are the one that has the power to change your life and your financial future.

    But where is dramatic life change? Stop watching movies.

    Risk Disclosure (read carefully!)

  • How Do Dividend Paying Stocks Work?

    How Do Dividend Paying Stocks Work?

    How Do Dividend Paying Stocks Work?
    Dividends may be a sign of good stock but never invest in some stock just because of dividends it pays.

    By Guy Avtalyon

    The dividend is like interest on a loan. A company that earns real money every year operates with it on three options. First, the company can reinvest earnings to make new products, find more customers, or to make business more efficient. Some companies can buy back their stock in order to own more of the company and more profits. The third way is to return some of the money to shareholders through dividends. It is very important to understand how dividends work. Stocks that pay dividends can be great to hold.

    Dividends are like interest on a loan. Assume you loan your relative $1000 for a year at 5% interest. You expect to get back your $1000 plus that 5%, which is  $50 more. The dividend is that except the $1000 stays in the company because you still own part of it. It’s your part of the profit the company made.

    Unfortunately, not all companies will pay dividends. Some companies don’t make the profit and they can’t pay out anything. Other companies flow all of their money back into the company to grow faster. The rule is there is no rule. What works for one business doesn’t work for others.

    Is investing in dividends a good choice?

    I know some people who like to receive dividend checks. For instance, some reliable companies may payout every three months. Even if the share price has small moves every year, investors still make money from these dividend payments and they don’t have to sell their shares to get that money. The check comes at the end of a certain period.

    This money gets paid to all shareholders, no matter how many shares they own. The retiree who owns one share of some company gets the dividend in the same way as the wealthy hedge fund manager. The reliability of dividends gives them attractivity in investment.

    Do Stock Pay Dividends?

    High dividend-paying stocks have rates of 5%, 10%, or even more.

    Why they are so high? It is simple to explain. Let’s see this simplified example.

    A company with a share price of $100 which pays a dividend of $1 per share every year has a dividend yield of 1%, while a company with a share price of $10 which pays out $1 per share every year has a dividend yield of 10%.

    Notice that the price you pay for a stock and the growth of the business over time determine how much money you make on that stock. Keep in mind there’s no shortcut to investing little money with high returns. Unfortunately, but that’s true.

    The easiest way to find if a stock pays dividends is to look at any stock research site. You will find a dollar amount for the latest dividend announced, the annual amount paid, and the current yield. Always check the dates. The point is that stock may pay out one quarter and not the next.

    Is it profitable to invest in the high dividend-paying stocks?

    High dividend-paying stocks are paying more than the average dividend rate. Companies that pay high dividends are considered as good companies. But they may have some other reason like to attract investors to drive up the share price. It also may be a sign that the share price has dramatically gone down recently. Sometimes this means the stock is on sale or that the company is in trouble. You can’t know this just by looking at the share price or how high is the dividend amount. You have to have better information about the company’s business and its current financials.

    The company must choose to pay a dividend and the amount paid may vary. Not all companies will regularly raise the number of its dividend payments.

    Is investing in stocks that pay dividends a good strategy?

    Yes, especially if you want regular cash coming in reliably. Reliability is the keyword because dividends aren’t guaranteed. You still have to do your research. It is better to buy great companies, not just stocks that pay the highest dividends per share.

    High dividend stocks are not necessarily a good investment. Pay attention do they pay them every year, every quarter or does a certain company follow a regular schedule for the rise of its payment amount. It is possible to make more from dividends every year per share than you initially paid for the stock. Keep in mind this the tricky part of a dividend yield of stocks; it’s always calculated relative to the current price, not what you paid. A company that pays a huge dividend is a warning sign. How does the company plan to maintain its payment strategy? Is this a temporary trick to raise the stock price to fake levels? Always think about reliability.

    Does value investors make money from high dividend-paying stocks?

    Dividends are excellent. And value investing looks for underpriced stocks.

    “What are the best stocks to invest in?” or “What are the reasons to invest in a company?”, can be the questions you ask yourself. In that case, dividends may be a sign of a good stock. But not all great stocks pay dividends, indeed. Some never do. Some pay from time to time. It depends.

    If you pick a powerful company that gives you a check every quarter and if the price is right relative to the value, then you have no problem. That gem belongs to you.

     

  • How to Find Dividend Yields on Stocks’ List?

    How to Find Dividend Yields on Stocks’ List?

    How to Find Dividend Yields on Stocks' List?

    By Guy Avtalyon

    The dividend yields are metric. For every single investor, the most important question is ‘How much money can I make’. At least, the reason to buy a stock or bond or ETF is to make money. It is important to understand what people mean when they talk about yield, return, and types of both. Investors have several ways to measure the money they expect to get, Depending on their investment strategies, investors have several ways to measure the money they expect to get. Managing risk is important. 

    What produces the dividend yields?

    Yield is the earnings you can make with an investment in a period of time. It’s the cash you get from making the loan. For example, you loan a friend $1,000 for a year. And your friend agrees to pay you back that $1,000 in twelve months, as well as $10 a month. For that loan, you’ll get back the principal as well as an extra $120.

    That means you’ll end up with 12% more money at the end of the year than you started with. This is easy to understand with loans and it’s similar to bonds, where the bond rate and payout periods determine what kind of money you get back and how often you’re paid.

    Do bonds give yields?

    But bonds are a little bit more complicated than loans because you can buy them from other investors. But the yield falls as the price rises because the yield depends on both the interest rate and the price you paid.

    Let’s say someone else bought the loan to your friend for $1100 and the 12% interest rate stayed the same, they’d only get $20 for the year, or 1.82% interest. That’s a  different yield from 12%, don’t you think.

    What determines the yields?

     

    The yield depends on both the interest rate and the price you paid. If you want a higher yield, you either need to earn more money from your investment every month or pay a lower price for the investment.

    Hence, there are different types of yield you can measure. But, you must know how stocks produce yield, for this to make sense.

    Do stocks give yields?

    Stocks don’t pay interest, but stocks may pay dividends. The dividend yield is easy to compare to other investments if you know what you paid for a stock. The problem is you can’t measure what everyone else paid for it. There are more possible to see the current yield of a stock, which divides the annual dividend payout with the current price of the stock.

    How to find dividend yields?

    If you want a regular cash income from your stock portfolio, you’ll have to understand dividend yield. The dividend yield is a pivotal metric that enables investors to analyze stocks. According to stock capability to generate dividends traders are trading them at many higher prices. To define dividend yield, you’ll need to know the total of a stock’s dividend payments per year and the current stock price.
    To calculate dividend yield you’ll have to add all the dividends paid per common share over the last year. Further, divide this amount by the current price. Then, multiply this result by 100 to discover the yield.

    For example, if the stock trades at $10 per share, the dividend yield is $0.70 divided by $10 and times 100, which is 7%.
    That would mean that for every $100 you invest in this stock, you receive income of $7 per year. Compare dividend yields of different stocks, and you’ll find the best investment choice.

    What is the difference between dividend yields and returns?

    But, not all stocks pay dividends. You might earn a great return that never pays you a penny.  But it is possible you’ll get money from selling a share for more than you paid for it. The same goes for bonds.

    Slowly, that combination of the profit you made from the sale plus any dividends you’ve received makes up your total return. Exactly as with yield, the price you paid is the most important factor in your return.

    But notice that there is one more essential difference between yield and return.

    The yield looks to the future.

    What can you earn in a year, what dividends will you receive, what interest payments will you get? These are predictable, depending on the risk of the investment of course.

    Return looks to the past.

    It includes interest or dividend payments, but it also depends on the price at which you sold your investment.

    What to maximize yield or return?

    The real goal of understanding yield and return is to compare how similar investments meet your investing goals. Any investment that returns money to you, produce regular income. If you can live from the incomes of your investments, that can be a great modus operandi.

    But if you want to build real wealth and you have enough for a long-term investment, total return is more important. But never ignore yield because it can be a great way to make better your returns. Pay attention to yield but look for good returns from share price realization as well.

    Whatever, being careful about the price you pay for investment will help you improve your yields and total returns.

  • Is Elon Musk In Trouble?

    Is Elon Musk In Trouble?

    1 min read

    Elon Musk Trouble Must?

    Short of it would be that Elon Musk is in trouble. Long, that he’s really really in trouble.

    It all started on August 7th when he tweeted that he is considering taking Tesla company private at $420 per share buyout and that he has secured the funding needed to do so. From there the things just snowballed. First, the price of Tesla stocks sharply raised to $379 from $341, then short-sellers started voicing their concern that Musk has attempted to manipulate the price of stocks of his company in an effort to hurt them financially and the USA Security and Exchange Commission has started an inquiry into his tweets.

    Elon Musk Trouble Must? 4

    Elon Musk – The naughty guy in the world of white collars

    But the Musk’s troubles do not end here. In a bit longer Instagram story, of which post is now deleted, rapper Azealia Banks claimed that she witnessed over the weekend after 7th August, while visiting her Canadian colleague and Musk’s girlfriend Grimes, entrepreneur’s meltdown and him being scolded by Grimes for tweeting about the buyout while under the influence of LSD. That tale continued with a bizarre string of posts made by Banks in which she demands from Musk to return her phone so she could retrieve her “quality nudes” and go home. A phone which allegedly Musk’s lawyer blackmailed her and paid off her lawyer into handing over to “delete evidence”.

    Elon Musk Trouble Must? 3

    The tweet is a trick?

    Elon Musk is known for taunting short-sellers on Twitter, and many of them observe the situation with that knowledge in mind. In the light of that fact they are seeing the tweet about taking Tesla private, and some have decided to file a class action suit against Musk as they see this tweet as a securities fraud. Such also may be the conclusion of the SEC investigation, but with the regulators being customarily tight-lipped about their investigations we may wait up to a couple of years before finding out whether they will take any legal actions against Musk or not. For now, the only thing which can be concluded about it is that SEC is under great public pressure to take legal action against Musk.

     

    Elon Musk Trouble Must? 1
    Whole this time Musk did not sit idle. He has already given a lengthy interview to the New York Times defending his actions. Going as far as to claim that he just added customarily 20% premium on top of the then current price and that he just rounded it up and came up with $420 per share. And that it has nothing to do with marihuana and drugs sub-culture iconography. He self-effacingly lambasted own over-reliance of automatization of production as the reason for not meeting the production goals. Also in recent days, there was a deluge of articles and op-eds written in big financial media glorifying Musk’s work ethics and lamenting about his pains of having to work on his own birthday. Alas, Musk might be an entrepreneurial genius but the math is not his stronger suit as 120% of $341 is not $419 as he claims.

    What will happen with Elon Musk and Tesla we will find out in the future, for now, one can only see this tale as a cautionary one.

    Kids do not do drugs, and if you do them do not mix them with social networks.

    Risk Disclosure (read carefully!)

  • The golden rules for investing in the stock market for beginners

    The golden rules for investing in the stock market for beginners

    The golden rules for investing in the stock marketWhat rules every investor should follow if want to be successful? Read to the end.

    By Guy Avtalyon

    Every field has golden rules, so this one has too.

    Fast money and easy earnings are mostly what young people want to succeed in the business world.
    They are attracted by exchanges, money is invested in shares.

    WOW!

    However, there are many curves, curvatures, spirals, and twists that, and if you don’t know how to avoid them, your trip to the stock market can be very short-lived.

    What are the golden rules for investing in the stock market, which should be known primarily to beginners in this business, but also to more experienced stock traders?

    Create a portfolio one of the golden rules

    You can do this in a simple way. There are many free portfolio managers on the Internet, so use some of them to make a free account.

    Create a fictitious portfolio in which you would potentially invest and monitor the situation for a while, a minimum of one month. This will give you the best insight into market volatility.

    Before you take the first step, the goal is to create a profitable fictitious portfolio as an investor on the stock market. This is really the golden rule.

    Among other Golden rules: Read business magazines 

    In order to successfully start investing in the stock market, you need to be aware of the world’s stock market. Also, what are the social events that affect the rise or fall of the price of shares?

    There are many respectable business magazines dealing with this topic (Forbes, The Economist, Kiplinger’s are some of the most famous ones).

    Follow the events in the global economy and finance and you will be able to swim more easily in the very turbulent waters of the stock market.

    Buy stock from a field you know well 

    Before investing money into something, you should understand the business the company is dealing with.

    The first stock you will buy on the stock market should be from the sector you understand and it is familiar to you.

    For example, if you know the banking sector, try to explore the market and find a bank whose stocks are good and worth investing.

    Never invest in the action itself, but in the company. This is one of the best golden rules I ever got. 

    Have realistic expectations

    There may be a problem if your financial goals are based on unrealistic presumption. Try to be realistic in your ambitions and goals. This will the most important golden rule for novices. 

    In this way, there are fewer chances to lose money or be disappointed in your stock market business.

    Do your own research one of the most important golden rules

    You will hear from people who are dealing with the stock exchange that they have bought some stocks. Just because the same was done by their friend or family member who understands this business.

    Accept everything with reserve. Before buying a stock, do research. If some stocks brought in earnings in the past doesn’t necessarily mean that this trend will continue.

    Always believe more to yourself than other people’s estimation.

    The stock exchange is NOT a money-making machine 

    This is one of the Golden rules. Most of those who want to participate stock market, have an unrealistic desire to double or triple investment in the short time frame.

    If you are one of them, then that’s not a job for you. For those who want to invest, 10 to 12% of the earnings for a long period is quite a good investment.

    You need to realize that you are just a small fish in a big lake and that your success depends on many factors. Some traders became really successful when they realized this golden rule. 

    Follow the clues and make conclusions.

    3 or 4 good stocks are enough 

    Don’t overplay is truly a golden rule. Especially because you are a beginner in this business. More than 10 stocks are a good portfolio, but for investment funds.

    It is true that they make more profit. But if you make a smart and wise decision you will earn enough money. Golden rules should be known to beginners in this business.

    Don’t try to predict the stock price

     Not even the biggest billionaires and owners of the largest multinational companies in the world are doing this.  No one is able to predict, at least for a longer period, several stock market cycles.

    Ability to guess the moment when the stock will have the highest value is still a myth. Even for those who have an insight into the business of some companies. Therefore, for successful business and investing in the stock market, you need to acquire certain knowledge and skills.

    According to many kinds of research, the risk of investing in the stock exchange is most often taken over by young people who have just finished college.

    But, like in every other business, the experience you get, will help you to be wiser in making decisions in the future. 

    That’s how it works!

  • Stock Market Is Going To Crash? Where Could You Put Your Money?

    Stock Market Is Going To Crash? Where Could You Put Your Money?

    Do you believe that the market will crash or you know? There is a big difference between what you believe and what you know.

    2 min read

    market crash

    Market crash or market not crash. If you truly believe the market is going to crash, there are a lot of sorts of places where you can put your money.

    You could buy gold or real estate or you could take an aggressive approach. And try to capitalize on stocks’  by loading up on investments designed to rise when the market falls or you could move it all into cash.
    But be honest.

    Do you really believe in such a scenario? Market, crash!

    There is a big difference between what you believe and what you know. Do you know that the market crash is close? When? Tomorrow? Next week?

    On the other hand, I can understand that someone can recognize market crash in this uproaring and uncertain times.

    We all remember, OK most of us, March 2009 and market crash.

    Everyone was extremely agitated about the falls in the stock market. And people were feared that the stock market might continue falling. Many people wanted to sell the holdings in his investment portfolio, move the proceeds to cash and sit out the market turbulence.

    And you know that emotions have an important influence on investor behavior and how do they make decisions.

    This can often lead to investors failing to capture the returns that are there for the taking. And as a result, suffering poor financial outcomes and according to some research, we are twice as sensitive to financial losses as we are to making gains.

    But is it so today?

    Is this the same situation? Will the market crash? Or it may not be. Think about it.

    The ones who like to predict disasters pointed to any numbers of reasons why they believe the market is headed to a crash.

    You have the choice to pick. From the growth-slowdown scare in China that sent stock prices down 12% in the summer of 2015; Brexit and the election of Donald Trump. Anything is supposed to be catalysts for a market rout. Obviously, some prediction of the market’s downfall is going to turn out to be right. But after the turnaround began in March 2009, it’s not as if investors knew the bear had run its course.

    While we believe we know where stocks are headed, we actually don’t.

    The same goes for market pros who may speculate and prognosticate (sometimes even provide valuable insights into what’s driving the market). 

    But they don’t really know what the financial markets are going to do in the near term. They don’t know will the market crash. 

    I don’t think it makes sense to shift your money around in an attempt to outguess the markets, whether that means going to cash to avoid a setback or moving to an investment you think will thrive while the market drop.
    That doesn’t mean you should sit back and do nothing.

    You can do the following things:

    The most important thing you want to confirm is your asset allocation or the percentage of your holdings that are invested in stocks.

    That will determine how your portfolio holds up if the market takes a major dive.

    Take this time to go over your holdings and tally up how much you have in stocks and how much in bonds and you’ll see how your portfolio is divided up between stocks, bonds, and cash.

    Second, figure out where your asset allocation should be.

    I’m sure you want a blend of stocks and bonds that will generate high enough returns so you can reach your financial goals but at the same time isn’t so risky that you’ll sell stocks in a panic during a major stock rout.

    Think back about how you handled past downturns or how you reacted when stocks began to dip and dive. You want to come as close as you can to a blend of stocks and bonds that you’ll be okay holding in a variety of market conditions. And then make all necessary adjustments.

    Then you feel you’ve got a portfolio that will provide sufficient gains during rising markets and enough protection during routes.

    You’ll be able to hang on until the eventual recovery, regardless of what’s going on in the market. The idea is to make sure your portfolio doesn’t become too aggressive during market upswings. Or too conservative when stocks take a hit.

    Making dramatic changes such as fleeing to cash or switching to different investments altogether, may be challenging at times when every news story or TV show you see seems to suggest that the market is on the edge of Armageddon.

    But you don’t want to let fear and emotions dictate your investing strategy and lead you to make impulsive decisions.

    Can I guarantee that this approach can provide you with the best results during the long – term? Of course not.
    This is just another  ”what would be if it were” scenario.

    Risk Disclosure (read carefully!)