Just 30 years ago the stock market was a shadow of what it is today. There were many fewer shareholders and the daily volume was a fraction of what it is at present. No one thought you would every be able to trade a billion or more shares in one day. Of course that was in the old days when they had tickers and the word digital was something you did with your fingers.
Now we have world markets. There seems to be a stock exchange in almost every country. Did you know there is a stock exchange (of sorts) in Baghdad? I have not heard if they are back in business now that the war is over.
It is kind of amazing that with all these new traders and with all the varied stocks in every part of the globe that market mechanics would have changed. They have not.
As a technical analyst and trader (I was an exchange member and floor trader for 17 years) I still see the same trading patterns I saw 30 years ago. Wouldn't you think with this tremendous expansion that something would be different? It isn't. Why?
The reason is very simple. People don't change. The basics of the market ? fear and greed ? still dominate. Emotions have not differed in thousands of years. As far back as recorded history people have reacted in almost the same way.
The emotions of traders can be plotted and you can see it in the charts that are printed out each day to show the price action of the market. Once an upward trend sets in people begin to buy, putting the market higher attracting more buyers until the greater fool application has run its course.
In the years I have been trading I have seen many new technical indicators. When you think about it almost all of them are based on the emotions of the mass of investors, even such simple indicators as moving averages. As a continuing student of the market I have studied and have used many of them. I don't know any successful investor who does not use them.
A broker or financial planner who does know understand and use these indicators is doomed to failure. If anyone in the financial field every says they don't work you can be sure he is a loser because he has not taken the time to learn his trade. He is worse than a carpenter who does not know how to use a hammer and saw.
A good technician can go to any exchange in the world, not know the language and still make money.
Stock charts are like EKGs that doctors read to see how your heart is doing. Some doctors can understand them and other have not learned.
The basic principles of trading have not changed over the years even though the market is many times larger than it was because people have not changed. Whether you invest on your local exchange or globally everything remains the same.
Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.
Copyright 2005
http://www.mutualfundmagic.com; 1-888-345-7870
express cleaning service Arlington Heights ..(1) Stock Market is Tough Place to Make Any Money... Read More
Every day I see in the financial section of newspapers... Read More
As an investor you will want to check out any... Read More
Because you don't feel too sure about which stock or... Read More
I mean it when I say that. While plastic silverware... Read More
Are you one of those many people who dread reading... Read More
When is a dividend not a dividend?The latest thing "conservative"... Read More
Before you embark upon a journey of trading stocks or... Read More
Suppose your position has made a big move and you... Read More
Very few people, even professionals, have heard of the Dalbar... Read More
Money: the most charged word in the planet. It means... Read More
The World Bank claims that some two billion of the... Read More
Should the market turn against you, it is important that... Read More
Who are the successful investors?There are those who follow the... Read More
The basis of diminishing return discussions surround such simple notions;... Read More
Do you have a nest egg? You know, a place... Read More
In today's volatile and confusing stock markets everyone is searching... Read More
Three little pigs went to the market to stock up... Read More
On the 40 year journey through the turmoil of a... Read More
The spring-loaded rat catcher is the ultimate low-tech device invented... Read More
1. Do not spread your money too thin.My friend has... Read More
Stock investment advice is easy to find. Do you get... Read More
On November 17 I bought 7 different mutual funds and... Read More
People are constantly asking me why is the stock market... Read More
If you go to Haiti or other places in the... Read More
tidy up service Arlington Heights ..AS BUILDERS BEGIN WORK ON THE FREEDOM TOWER in New... Read More
Everyone who invests in the stock market wants to be... Read More
For weeks, no, months we have been bombarded with nothing... Read More
Where is the beef? Or maybe it should be where... Read More
Ever notice how behavior in one area of life can... Read More
Let's assume that you want to make some serious money... Read More
If you don't know what a Roth IRA is then... Read More
Outlined below are some of the advantages and disadvantages of... Read More
Recently I watched my favorite football team lose a vital... Read More
Profitable day traders recognize that momentum trading is among the... Read More
There is so much involved in developing peak performance, that... Read More
Professional stock options traders use the term lean to refer... Read More
Last time we looked at the real performance of the... Read More
As an investor you will want to check out any... Read More
A recent cartoon in my daily newspaper showed two guys... Read More
Investing in long-term financial vehicles give you the most gains... Read More
I continually hear from economists, talking heads, other market letter... Read More
If you've ever flipped on the television to CNN Financial... Read More
Hedge current portfolio positions and gain access to capital resources... Read More
Disclaimer: Please note that I do not necessarily purchase, own,... Read More
How do you make money without picking tops and bottoms?I... Read More
It has fallen upon the consumer to make our economy... Read More
It seems that every day I turn on the TV... Read More
Regardless of the fact that the world's stock markets have... Read More
For the year 2000 we have seen hundreds of mutual... Read More
Stocks & Mutual Fund |