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
whole house cleaning Deerfield ..Mutual fund investing is a lot like Thai cooking. Everyone... Read More
How do you invest? What do you really pay? At... Read More
Before they go over the cliff to their destruction these... Read More
Money: the most charged word in the planet. It means... Read More
Over the past few months, several investment professionals have brought... Read More
The big bad bear is stirring again. So far he... Read More
I read a comment by a forum member on another... Read More
Exchange Traded Funds (ETFs) are a group of passive index... Read More
Investing in long-term financial vehicles give you the most gains... Read More
Intervention. Now don't let that big word scare you. The... Read More
There are many good penny stock investments available, which could... Read More
Even if you don't own any of their stock or... Read More
This is an extract of an article which was first... Read More
Suppose your position has made a big move and you... Read More
In 1960 an engineer working for a watch company in... Read More
For years investors have been taught to look into the... Read More
We all know the expression, "My country, right or wrong",... Read More
Several times each month I am solicited by various market... Read More
Success in small cap & micro cap stock trading like... Read More
On the 40 year journey through the turmoil of a... Read More
Forget making a profit; instead focus on the income provided... Read More
Ever have one of those sample boxes of candy? Each... Read More
One of the things people are always asking me is... Read More
Stock trading remains a very competitive field and the stock... Read More
If you're like many investors who squander those small dividend... Read More
home cleaning services Des Plaines ..Every day I hear someone on CNBC proclaim that "this... Read More
Using Swing Trading Strategies and Technical Analysis when Trading Stocks... Read More
Inverted interest rates? What's that? Who cares? Even if you... Read More
All stock trading and investing methods must deal with the... Read More
For the last 12 years we have seen the Japanese... Read More
How do you invest? What do you really pay? At... Read More
Cat or dog? Maybe Zebra. Shucks, I don't know, but... Read More
Professional stock options traders use the term lean to refer... Read More
Peter is a professional trader, Paul is not. Peter has... Read More
As an investor you will want to check out any... Read More
I often play a little game with myself when I... Read More
Whenever I see mutual fund comparisons in the trade publications... Read More
For the year 2000 we have seen hundreds of mutual... Read More
Are you paying any attention to your retirement savings? Do... Read More
If you're a normal human being, your need to feel... Read More
Economists know more about how the fragments of society work... Read More
In 1960 an engineer working for a watch company in... Read More
Suppose your position has made a big move and you... Read More
Ever turn down a street, get half way and suddenly... Read More
I continually hear from economists, talking heads, other market letter... Read More
You have decided to buy some stock or mutual funds,... Read More
Forget making a profit; instead focus on the income provided... Read More
I have a 2-car garage. There are nice shelves on... Read More
When it comes to buying a stock or mutual fund... Read More
If you are serious about making and keeping money by... Read More
Stocks & Mutual Fund |