The stock market just hit the level that had in 1997. Billions upon millions of dollars had evaporated. Banks, mutual funds and individual investors are in shock. BUT all those news are producing reference to the stock market indices, for example the Dow Jones Industrial Average.
The Dow Jones Industrial Average's computed with the stock prices of 30 of the largest public companies in USA.
The Dow could be down as an average, but some individual stocks can be high and profitable. To help you find those stocks, I'll lay here for you 5 well-to-do and fast steps.
1. Sign up with an online broker. With an online broker, you can do transactions as low as $9 per round trip (a round trip is a purchase + sale of the stock). By law, the minimum to open the account with the stock broker is $3,000. That is the minimum money you need to begin trading in the stock market by yourself. Please note that the online broker does not tell you which stocks to buy or sell. They just provide the online interface to do so, but the choice is yours.
2. Find a provider of accurate market data. If you search, you will find many internet companies that can provide you with the stocks prices online. Some of them can give you the live price of the stocks, in real time, for a monthly fee. Others (such as yahoo finance) will provide you for free with the market graphics and prices delayed 15 minutes.
3. Find the stocks on the move. Each day, here are companies with positive news. For example, a pharmaceutical company that gets a new medicine approved by the FDA. A defense company that gets a huge contract with the military. Or a company with a great quarter report.
4. Each day, start watching those stocks. Get a feeling of how they behave. In the beginning you must practice what's called "paper trading". That is, pick a stock to buy and sell the same day, but not invest any money yet.
5. Keep a written dairy for 30 straight trading days. Write the pick of the day, and why you think the price of that stock will go up. Make a note on the optimal time to buy it and the best time of the day to sell it. Please don't overlook this step, and the knowledge you increase from writing it, will train your mind to pick the right stocks.
If you follow the above steps, I can assure you that you'll become a proficient stock trader with big profits. I cognize for sure, because those are the steps I took myself to earn my living in the stock market.
In the stock market world, the days when the market is up are called "Bull Market", and when the market is down are known as "Bear Market". Well, this method you just read will work for you in bull markets and bear markets, because here we are talking about individual stocks and not about indices.
5 Easy Steps to Start Investing in the Stock Market.....
Labels: Dow Jones |
Up One Day, Down One Day: Stock Market Trading.....
Labels: Dow Jones |Market closing prices run up as well as run down faster than summer lightning strikes and rain pours. One day, investors are encouraged; the next day, investors are disappointed. Does the retail mislead investors one day to sucker the same investor the following day? Or, does the stock market inform beyond immediate perception?
The difficulty facing investors involves delving below the obvious market numbers. When the market makes accelerated pricing moves's there a warning message underlying the number? All conversations involve the spoken or obvious message and the unspoken underlying message. Getting to the "what is really being said" challenges everyone listening to the language of the stock market. As someone told me once, "The real message is almost always the message behind the message." Here are a little of messages within the message of the Dow Jones Industrial Average.
Intra-day stock market activity
Most investors ignore the opening, few glance at sidewalk tickers or hear intra-day TV or radio stock market reports. Markets drift or make wild intraday moves. In most cases, intra-day stock market price moves get their momentum from news. For example, "Stocks drifted lower in aimless trading Tuesday as mixed earnings news overshadowed an unexpected jump in consumer confidence and left investors cautious about extending the prior session's sharp advance." Each explanation references a news item. News moves the markets durng the day; company stock transactions provide the most obvious example of what news does to intra-day stock trading.
Trading Volume
The number of shares traded by a company stock or the equity market indices tells us the most. Volume matters in nearly every life-category. Often, I tell my children to "turn down the volume." No matter what direction the market moves, turning up the volume makes the message clearer. A company's stock price moves or broad market moves can be misleading. If a corporate stock reaches a new price high on lower volume, you might think completely is well. In fact, the stock must make that new high price with strong volume (perhaps 3 times the daily average volume) to demonstrate strong purchaseing activity. The same principle holds for market indices. High volume on the upside over successive trading days (no less than 3) recommends market strength; high volume on the downside suggests otherwise.
Industry Groups
Every bull market reveals industry group leadership. Briefing.com is one source of information about industry group strength or weakness. On this day, home entertainment software leads up while air freight and logistics shows weakness. You can track 197 industry groups as an Investor's Business Daily reader.
Leaders and laggards
Every group has its leaders and laggards. When the broad market indices shift out of a bull (down) market, a new group of stocks will emerge as leaders. Watching these stocks during a bull market provides investors with insights about a bull market phase. When leading stocks suffer pricing weakness, investors should stay alert to broad market shifts on the downside. Stock leadership cycles from bull market to bear market to bull market.
Making a correction
Commentators provide multiple excuses for the days when markets endure losses. Every bull market requires a 10% to 20% correction. This shakes out overly optimistic investors. Knowing when to get "in" and "out" of the market stymies stock market gurus. Some do it right many of the time, and others do it wrong all of the time. No matter what direction the market takes, equity/stock and debt/bond investors put their money somewhere. Usually, stock selling means bond buying. If stocks and bonds are sold, cash becomes the default investment. It all depends on the benefits perceived from any asset class.
Charles Dow's "Theory" known as the "Dow Theory" provides some investment wisdom. Today's market activity (Dow Jones up with the Dow Jones Industrials "down") reminds us of 100 years of Dow's investment wisdom. His successor was William P. Hamilton (the fourth editor of the Wall Street Journal.
* Hamilton's bullet points on Charles H. Dow's theory are helpful. "The Averages discount everything." * "The primary trend cannot be manipulated." * "Both the Industrials and Rails (the modern day Transports) must affirm each other in order for the signal to have authority." * "A rise in the Dow Jones Industrial Average must be 'confirmed' by the Dow Jones Transportation Average in order for the rise in the market to be sustainable." * Dow Industrials are companies that make; Dow Transportations are companies that deliver. If the transports are down, the industrials may be in trouble. Today, the Industrials are up (52 points); the Transports are down (80 points)
Asset Class Correlation and Manager Style
Asset allocation across and within asset classes allows investors to endure the downs while waiting for upward moves. It is more probably for asset classes to increase value in a bull market, but all asset classes will not participate at the same time. This is what an investor wants: one asset class up when another may be down. Within asset classes, trading styles should differ. Each of these functions adds value to portfolio performance.
<h1 class="subject">What's a bigger problem high unemployment or a low Dow Jones Industrial average?</h1>
|Is it better if stock prices are low but people have jobs,
or
if people don't have jobs but stock prices are high?
High unemployment is the bigger problem.
The DJIA is an indicator of corporate economic well being which is affected by employment or unemployment. That's because the number of people who are gainfully employed above the poverty line gives you an indication of how much disposable income consumers have to save or invest in financial products, or to spend on general goods and services, or to pay down debt.
The sum total of these activities directly affect the earnings of publicly traded companies, and this eventually leads to a higher or lower DJIA. If enough people don't have enough good paying jobs, then the DJIA will come down to reflect the equilibrium that is not enough aggregate demand and too much supply in the aggregate.
High unemployment is a MUCH bigger problem! If you compound the problem with high stock prices. Stocks have no where to go except down. People who own them will lose fortunes.
When unemployment is high, people don't save, buy goods and services or invest. The stock market will dive.
A low stock market and high employment is an investors dream. It is a golden opportunity to invest in bargain stocks. Stocks will soar and investors will make a fortune.
In economic terms, low prices are the cure to deflation.
The stock market is an indicator of how one part of the economy is functioning, but a poor indicator of the economy overall.
Unemployment is a good indicator of the economy as a whole.
So unemployment.
Generally the Dow Jones Industrial Average reflects the economy. If consumers don't spend unemployment rises. Businesses rely on consumers to spend so that they can pay their employees. No spending equals no jobs.
There is a relationship between the DJIA and jobs---if it gets low unemployment rises--so when the DJIA rises there is hope that unemployment goes lower.....
High unemployment by a long shot. But falling stock values leads directly to higher unemployment, so parsing them into separate problems is a bit tricky.
High unemployment since people are force to live off unemployment benifits which drains the budget and is not replaced with income being with held.
I think the root situation is defiantly jobs - allot of good paying jobs would bring up the stock market.
They go hand in hand..
However unemployment is the biggest.
unemployment. no one working can not buy products or good which make the market go down.
You don't think they might be related? Fix unemployment. The Dow will correct itself.
<h1 class="subject">During One Week The Dow Jones Industrial Average, The Most Commonly Used Measure Of The Stock Market, Rises 43</h1>
|Points, Falls 11 Points, Rises 38 Points, Rises 69 Points, And Falls 148 Points. By How Many Points Is It Up Or Down Overalll For The Week?
A. Down 12 Points
B. Down 9 Points
C. Up 9 Points
D. Up 12 Points
answer it's B because:
+ 43 - 11 + 38 + 69 - 148 =-9
.