Does anyone know about the stock market? It's dropped again this morning, will it get better?

Question

I was told this is supposed to be the best time for the Stock Market but it's been going down recently.

Is there any good websites or books where I could learn about the stock market?

Answer 1

"know"ing about the stock market is not the same as knowing whether you can stop your car at a stop sign.

cars and stop signs are macro world physical phenonema and obey the rules of cause and effect. You've been learning those rules since you were born (if you hadn't learned them, you'd not be able to operate a computer and ask a question here).

investing and the stock market are statistical and probability based mechanisms, not cause and effect mechanisms.

That means that niehter you nor anyone else can "know" in advance of the market's behaviors what will happen today or over any particular period of time. The best you or anyone can do is assess the chances and place your bets.

While the long term for the US economy looks like growth and therefore the market looks like it will go up, you have to understand that

1) there will be downdrafts along the way
2) the downdrafts are unpredictable in timing, size, and number
3) a catastrophe is possible which might hit the market so hard that all of your expectations and plans will prove unbelievably wrong.

***
Still, you can not get ahead financially without taking risk. 'Tisn't possible.

What you can do is choose which risks you will take.

Example: there is a risk that lawsuits will go out of style in the US and the highly paid profession of attorney will, rather suddenly, not be a route to financial success. In that case, all of the people who borrow huge sums to pay for law school will suffer a financial catastrophe.

Same for any schooling.

Not to mention same for investing in anything.


GL

Answer 2

The internet has so much info to learn about investing, you probably don't need books for a while.

For well over 100 years major stock markets have consistently risen, with occasional drops. So gradual rise overall is what can be expected.

Due to signs like Stock index futures being in some cases lower than the underlying index in the last month, which is not normal. I think there is real serious feeling by hedge traders etc... that a serious drop may be ahead. However I say this mainly to point out that even though it seems a good time to buy (as stocks have dropped a lot (Wall St > 900 points from top), I wouldn't do it in a big way at this stage. Too risky.

The safest index stocks historically to ward off global crashes is the Aussie stock market. See historical charts.

Answer 3

Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/c8109

Answer 4

Hi, it depends on your time horizon. In the long run its always upward bound. so is any market in the world. (unless earth is invaded by some alien race)
But in the short term it may go anywhere.

If you are sitting on surplus cash and have intention to invest, you should feel happy about the market falling. because its an opp for u to buy your stocks so much cheaper.

Its also true that one cannot catch a stock (or the index for that matter) at the rock bottom also. your investment in the short term may see red .. eventually to soar higher. how long it would take? is a a very subjective question. it depends on lot of factors? the business of the company you invested / the country in which invested / the health of US economy , bla... bla.. bla.

Answer 5

The secret word of trading success is "organized". You can't be successful without a strategy, a plan and some kind of technological support. I use a software called "autobinary signals" that is helping me a lot. There are plenty of them on the market. I recommend this one because it's very easy to use (you don't have to be an expert or have special skills to make money with it).

Check it out here. It's worth it: http://tradingsignal.toptips.org

Answer 6

Head over to your library and pick up some books like "investing for Dummies" or anything by Suze Orman, Jane Bryant Quinn and others. First you need to learn about investing before you invest. Now is a great time to buy, IF YOU KNOW WHAT YOU ARE DOING. If not, read and educate yourself. There will be more buying opportunities - they always come along.

Answer 7

Keep your money in a safe bank account for the next 6-12 months. Make sure it earns at least 4.5%. Check ETrade/similar online banks that are FDIC Guaranteed only.
The Market will go up and down but the trend is -- It's really going DOWN. If China or Middle East countries start selling our Government-owned obligations, we will be in real trouble. In addition, an estimated 2 Million homes will be foreclosed in the next 3-5 years unless the Fed takes some drastic action... So, in my opinion, please keep you money in a safe account that earns something better than inflation. You won't be sorry. Best, Anil. 11/19/07

Answer 8

Another great place to start learning is investopedia.com - they have everything from simple definitions to trading strategies and tons of articles of interest that helped me learn about the market. They even have a great simulator where you can join a game of "paper trading" and buy/sell stock or options in a make believe account to get a feel of what it is like to trade. Good luck.

Answer 9

Will probably be down for a year or two. It typically follows the housing market. Stick it out and you will see it gradually move back up in about a year or so... With the mortgage crisis right now though, fewer homes are being bought and fewer people are being approved to buy homes. So the economy will slow down until our Govt does something to deal with the situation or a few mortgage lenders go bottom up for over lending. Eventually though, it will move back up.

Answer 10

1