The Law of Chaos is the theory of random unpredictable action applied to the cosmos, mathematics, mechanics, almost everything. Those who believe it will definitely think the stock market is in chaotic state at this time. Don't you believe it.
When I was a floor trader people would ask me how do you make sense of what is going on with all that yelling and arm-waving? To the uninitiated it does look turbulent, but to those who are in the middle it is understandable and orderly. It took me a while before it became "normal".
Your broker at this time may be telling you that such-an-such stock is a great "value" because it has come down so far. Don't believe this Wall Street myth. It will only cost you money. Cash is your best position right now. Look at the pattern as shown on a stock chart.
When the trend is down never try to pick the bottom. Here are two glaring examples. Cisco went to $82. When it came down was Cisco a great buy at $65? Did your broker call you? Now it is $11 and headed for $?? Lucent looked like a buy at $60 and now it is 77 cents down from 77 dollars! Is this chaos or is there an orderly pattern to this mess? The lesson here is never buy any stock or mutual fund that is in a downtrend and if you own something that is, sell it immediately.
To those of us who have studied the price patterns of individual stocks and market indexes we see a road map (stock chart) of what has happened and have a good idea where it is going. It is not random. Many brokers will tell you this can't be done and that charts tell you nothing. That is because they have not taken the time to learn their trade. Technical analysis is more important than fundamental analysis. Over any period of time a good technical analyst will beat the shirt, pants, underwear and socks off a fundamental analyst because fundamentals don't give timing. Fundamentals are the background for a major move.
There is an orderly pattern in all this seeming chaotic price action of the stock market. To become a serious trader and money-maker you must study it in order to make it a useful tool for you investments, Otherwise, you are at the mercy of brokers, financial planners, bankers and other "experts" who know as little as you.
Copyright Albert W. Thomas All rights reserved Author of "If It Doesn't Go Up, Don't Buy It!"
www.mutualfundmagic.com; email to al@mutualfundmagic.com
affordable house cleaning Park Ridge ..Every stock market investor faces one primal enemy. An enemy... Read More
The stock market is very unstable at this time going... Read More
When you become interested in a stock or mutual fund... Read More
Ever turn down a street, get half way and suddenly... Read More
Did you run out to buy that duct tape yet?... Read More
It looks like the market is ready to start up... Read More
When it comes to mutual funds, there is a lot... Read More
All of the talking heads have been telling us that... Read More
Where is the beef? Or maybe it should be where... Read More
I am sure that if you have a brokerage account... Read More
The trading method you employ to approach the stock market... Read More
Very few people, even professionals, have heard of the Dalbar... Read More
Recently I watched my favorite football team lose a vital... Read More
Are you attracted to the idea of being in control... Read More
This article describes the model of a natural relationship between... Read More
Financial markets provide their participants with the most favorable conditions... Read More
We have two candidates for president that have really different... Read More
Cat or dog? Maybe Zebra. Shucks, I don't know, but... Read More
There are formulas for just about everything, but it has... Read More
Never lose money in the stock market again. Yeah, I... Read More
What account size do I need?How much money can I... Read More
The stock market has been going up for more than... Read More
How can you dispel an illusion unless you look directly... Read More
For the last few weeks we have seen the stock... Read More
I constantly hear the talking heads on CNBC-TV, the radio... Read More
affordable house cleaning Mundelein ..Even if you don't own any of their stock or... Read More
With all the bad news that has been dumped upon... Read More
What account size do I need?How much money can I... Read More
Several times each month I am solicited by various market... Read More
Let's assume that you want to make some serious money... Read More
In 1960 an engineer working for a watch company in... Read More
Day trading is all about making buy and sell decisions.... Read More
In today's volatile and confusing stock markets everyone is searching... Read More
Well maybe that's overstating it a little, but it's certainly... Read More
The Shadow knows. There used to be a radio program... Read More
When it comes to mutual funds, there is a lot... Read More
Over the past few months, several investment professionals have brought... Read More
Do you have a financial planner? Does one of your... Read More
"If you don't know where you are going, any road... Read More
(1) Stock Market is Tough Place to Make Any Money... Read More
Every day I see in the financial section of newspapers... Read More
Never lose money in the stock market again. Yeah, I... Read More
You must take the time once a month to review... Read More
What does it take to be a stock trader? It... Read More
If you haven't heard of the technical indicator with the... Read More
What is leverage?Here is a definition of leverage from an... Read More
Very few people, even professionals, have heard of the Dalbar... Read More
As an investor you will want to check out any... Read More
You may have wondered why your mutual funds have been... Read More
Before they go over the cliff to their destruction these... Read More
Stocks & Mutual Fund |