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Calculating Your Investment IQ

January 31st, 2008 by admin


Stocks, bonds, index funds; averages, recessions, market rallies and corrections; mutual funds, technical analysis, financial statements; commissions, taxes, and discount brokers. Just how much do you know about investing, or perhaps a better question: is there any “know″ in the investment vocabulary? So many terms, ideas, and strategies; so little time and money! Here’s a list of thirty mostly-true or mostly-false comments for you to kick around with your friends and fellow investment bloggers:

1. Every Properly Diversified Portfolio will have up to 5% of its market value in each of these areas: miscellaneous speculative opportunities, gold or other commodities, small cap stocks, and global index funds.

2. Financial Professionals are well trained in all aspects of investing, investment portfolio design, and management. Consequently, a significant portion of their compensation is tied directly to how well they help their clients develop high quality, properly diversified, and goal directed portfolios.

3. Buy-and-Hold continues to be the proper investment strategy for most individual investors, especially if automatic reinvestment of income is part of the package.

4. It’s a better Investment-Income Strategy to buy shorter duration corporate and municipal bonds (rather than higher yielding long-term debt) because the market value doesn′t fluctuate as much with anticipated changes in the direction of interest rates, and that is the most important concern with income investing.

5. If an investor can learn to control his own Greed and Fear, he will have a much better chance of investing successfully.

6. Asset Allocation is a strategy used by investors to move assets from weak market sectors to strong ones in order to improve the growth of the Investment Portfolio’s bottom line.

7. No Load Mutual Funds are particularly good for investors because the mutual fund company does not charge anything for its services.

8. In the long run, investing in the stock market will assure you of keeping up with Inflation.

9. The proper gauge of your total Investment Portfolio Performance is the change in market value over the course of a calendar year, compared with the change in one of the more respected stock market averages during the same period of time.

10. Quality, Diversification, and Income are considered by many investors to be the three basic principles of investing.

11. Mutual Funds have always been a safer route to long-term investment success than trying to create your own portfolio of individual securities.

12. The Dow Jones Industrial Average is comprised solely of investment grade companies, and generally gives a clear indication of what is going on in the stock market.

13. Smart Cash is an integral part of any asset allocation formula because it allows investors to time the market successfully. Professional market timers know precisely when to move into or out of cash in anticipation of the next major directional change in the market.

14. It is a well-known fact that there are certain Core Portfolio Securities that belong in all investment portfolios if long-term success is to be expected.

15. There is no such thing as a freebie on Wall Street.

16. Closed End Mutual Funds (CEFs) are not popular with Wall Street professionals because they are inherently more risky than normal mutual funds.

17. Packaged Investment Products are designed with a sincere concern for the financial well being of the average investor, and are good for everyone.

18. Zero Coupon Bonds are an important part of the fixed income portion of the investment portfolio, especially when retirement is contemplated within five years or so.

19. The second step in every stock purchase should be the establishment of a Stop Loss Order. Such an order assures you that your losses will be limited to a specific percentage of your purchase price.

20. The IGVSI tracks the market value of a small but elite group of New York Stock Exchange equities.

21. The Four Most Important Investment Ideas include: buying only high quality securities, diversifying properly, using discount brokers exclusively, and establishing reasonable profit-taking targets.

22. Profit Takers and Traders hurt the average investor.

23. Investment Grade Value Stocks will be the next red-hot market sector.

24. “Sell your losers and let your profits run″ is the essence of sound Investment Management thinking.

25. The November Syndrome is the partial result of the interaction of Wall Street institutional window dressing and the Infernal Revenue Code.

26. It is important that you take your Tax Losses regularly, particularly if you have held the losing position for less than one year.

27. Annuities, particularly Variable Annuities, are perfect investments at retirement both for people of limited resources and for the wealthy.

28. Technical Analysts can predict the future movements of the economy, individual securities, and the stock market with a very high degree of accuracy.

29. Index funds will always beat the market, or market sector, that they are designed to track.

30. The keys to successful investing are Asset Allocation using only two investment buckets: Equity and Income, and the development of realistic expectations about their market value performance.

Investing is as fascinating as it is frantic, as scary as it is exciting, and as intimidating as it is satisfying. But perhaps the most interesting thing about it is how educationally unprepared most individual investors are for the adventure! Books have been written, graduate degrees awarded, and doctoral dissertations presented in most of the topical areas touched upon so glibly above. Most of you will give your seal of approval to too many of the statements. Contact the author to determine your IIQ.

Steve Selengut
http://www.sancoservices.com
http://www.valuestockindex.com/
Professional Portfolio Management since 1979
Author of: “The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read”, and “A Millionaire’s Secret Investment Strategy”

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Chasing After Stocks

January 31st, 2008 by admin


Sometimes a friend or acquaintance will bring up the subject of Wall Street with an eye toward taking a plunge in the stock market.

While I am not a stockbroker, I never hesitate to share my thoughts on the subject with anyone who asks.

When the stock market was showing jitters over the North American Free Trade Agreement just before the U.S. House of Representatives voted to approve it recently, my advice was “buy, buy, buy!”

It wasn′t until the day after the vote, when the market was taking a dive, that someone told me I should have known better: Everyone knows you buy on the rumor, sell on the news. Now they tell me!

A very attractive stock, not long ago, made millionaires out of dozens of its employees and big bucks for hundreds of wise investors. Everybody liked the stock, and I suggested that anyone who wants to make a killing should get on the bandwagon right away. The stock dive-bombed to less than 20 percent of its high, and a lot of folks lost their shirts.

It wasn′t until the stock hit bottom that I learned the age-old philosophy of clever market watchers: When the average guy is buying, you sell; when the average guy is selling, you buy. Too late now!

There was one stock that I knew I couldn′t lose on. When I found out that the company’s earnings had quadrupled, I advised the stock should be bought immediately. Everyone knows it’s a company’s earnings that drive up the price of a stock. But, alas, the stock tumbled the day the earnings report came out. Despite the incredible improvement, earnings came in below the estimates of Wall Street analysts. Now I know: Improved earnings aren′t everything!

One of the world’s biggest companies was obviously in deep trouble earlier this year when it announced record losses and divestiture of its most important and profitable subsidiaries. Naturally, my advice was: Get rid of this lemon posthaste. You guessed it, after only a brief interlude, the stock moved substantially higher, bringing lucrative profits to those who are made of sturdier stuff.

A longtime market leader was selling near its all-time high some months ago, and I read in U.S. News and World Report that this traditionally strong company, with a good dividend, had excellent prospects for improved earnings. The company’s balance sheet was solid as a rock, and its management was good. Naturally, I told friends that this was a good buy for anyone looking for capital gains.

Believe it or not, I was wrong because not long after I offered this free advice the company announced it was having trouble with its competition things didn′t look so good, so it would have to make dramatic price cuts — a big drag on profits. That’s how I learned that you can′t believe what you read in the magazines — and you can′t go only by the balance sheet either.

Over the last couple of years, and particularly over the last few months, almost everyone has been talking about how good an investment the technology stocks are. The future of stocks dealing with computers, telephones and cable television is sure to be a bright one. I advised buying a top stock in the field, and only a few weeks later that dog took a nosedive.

My advice? Try the horses!

This is a column I penned as a “My View” for The Hour newspaper of Norwalk, Conn., on Nov. 17, 1993.

I am a retired newspaper reporter and editor, having worked for The Hour newspaper of Norwalk, Conn., for 32 years. I am a 1964 graduate of New York University where I majored in journalism and minored in marketing under a public relations program. I served three years in USA Army in Public Information in Germany and Colorado, 1954-57. I currently hold the position of Adjutant with the Veterans of Foreign Wars, Robert F. Garrison Post 3350 in East Rockaway, New York. I am a lifelong fan of Bing Crosby, the greatest singer of the 20th Century and an Oscar-winning movie actor.

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Fast Stock Trading

January 31st, 2008 by admin


There is no easy answer when it comes to fast stock trading. You have to have the eye of a tiger, and hunt down your prey (stocks) relentlessly! Not everyone will successful in this game of cat, and mouse. Many will though, and will become wealthy beyond their wildest dreams.

So why stock trading? It’s simple if you can get in and out at the right time you might have a chance at a simple fortune, that requires a relatively small investment to earnings ratio. Ever wonder how the big-timers do it? They are in the know. They know instinctively what to look for in market trends, and how to take advantage of it. It’s more of a mindset, and instinct. Go with your gut. Sure when you see the market dive, and start to climb again you think get out now, but your gut is telling you to ride it out and make a fortune! Listen to your gut. If some of the top names in stock trading would have taken their money and ran they would be mediocre instead of filthy stinking rich!

Is there anything that can help me break into trading? Generally it’s not something I like to do, but I have found a very helpful blog that reviews the top five ebooks on how to get into stock trading, and trade like a pro. The top five are listed in order, and a little bit of info is given for each one. I tried some of them out with varying amounts of success, but they worked for sure. If you don’t have experience in trading already products like this are designed to help you.

This short article is meant to help you get in the right frame of mind, and motivate you to go out and start trading. I hope that it has helped you get a little more focused, and I wish you much success in your future trading!

My name is John M. David. I found this blog a wonderful resource while researching this topic.

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How To Make A Living From Stock Trading

January 31st, 2008 by admin


Stock markets hold a lot of potential for investors, but many factors are to be considered before playing the game. At the very outset, you must be aware of the stock market basics. The stocks that are trading, the minimum investment amount, as also other research work needs to be undertaken. A sound knowledge of the company in which you are willing to invest is a must. You must have a thorough knowledge of what business the company is involved in, and what are its future plans. If the research work yields favorable results, go ahead and invest in the company, else refrain from doing so. There always is a high risk investing in stocks, so always make sure whether you are able to survive it or not. You may also carefully consult Marl, the stock trading robot who gives fair tips on investment.

What is stock investing?

Whenever a company needs money for carrying out business, it floats stocks, shares and other securities in the market for public subscription. The investor becomes the lender to the company. Stock is nothing but shares combined together. When the company makes profit from the business, they give the shareholders a part of it too since they had provided them with the capital to start off the business. So in such investing options, once you make a wise decision on investing in a good company, rewards will just flow in without requiring any initiative or work on your part.

What is stock trading?

After investing, another factor of the stock market is stock trading. The share prices of any given company are determined by the demand for those shares in the market. Given the profitability of the company, a positive one will cause the share prices to go up, while low profits of losses may bring down the prices. As the companies’ economic condition keeps on fluctuating, the demand is also not a constant all the time, hence share prices too fluctuate constantly. The rationale is to buy shares at low prices and sell off whenever they reach a higher price and thus make a profit. This is the rule of the thumb. Here, long-term plays little role, as profits are booked at any time when the prices are high.

As everyone wants to earn money by investing in shares, a wise decision is always required to be taken. Besides, proper planning regarding stock investing is also a must.

If you are holding many shares of a consistently growing company, then there is little cause to panic. However, if the company is growing at a phenomenal rate, you need to be on your toes and find out why this is happening. If this is because of genuine reasons, you can invest further in the company else quit with existing profits. The stock marketing India [Sensex, Nifty] has grown over 45% in 2007, and the investors are reaping the benefits.

On the other hand, a company whose shares you have held might run into losses. Most people opt for stop-loss to avoid higher losses. But with investigations, you may find out that the loss was due to some unfortunate incident and the share prices might go up again. So holding the shares makes a lot of sense. So these factors need to be considered as well!

Finley Zhang is a stock investing consultant and owner of Tips For Investment.

Tips For Investment helps those who are new stock investor to achieve long term and stable income by using Finley’s investing tips and methods. You can instantly access the tips, methods and strategies by visiting http://www.TipsForInvesment.com.

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The 10 Commandments Of Trading Penny Stocks

January 31st, 2008 by admin


1. Thou shall always use proper asset allocation and manage risk.

If you diversify your cash for trading stocks you will limit your downside risk and allow the winning trades to take care of themselves.

2. Thou shall always use limit orders.

Never buy penny stocks with market orders. You will never get a good price over time.

3. Thou shall always use stop losses.

Protect your capital by using stop loses at around 25% to 50%. This still holds true when your stock starts to make a gain. Be disciplined and re-adjust frequently.

4. Thou shall always do your homework.

Before you buy a stock be sure to do your homework. After you have bough a stock and are holding it, be sure to keep up with the homework.

5. Thou shall trade along with the stocks momentum.

If hedge funds or mutual funds are buying into a stock, it is often a winning strategy to follow in their path.

6. Thou shall pay attention to politics.

Be aware of the trends in politics because it will have a powerful effect on the way a stock performs.

7. Thou shall never hold emerging market penny stocks for the long term.

Companies that do business in emerging markets will have more economic risk over time. Be sure to always prepare for corrections and unexpected events.

8. Thou shall not worry about paying taxes.

Don’t worry about having to pay taxes on your winning trades. But do worry about holding onto a penny stock that is starting to loose its momentum.

9. Thou shall never panic.

No one every made a good decision while panicking. Stay calm and make intelligent decisions. There will always be a better time to sell.

10. Thou shall always hold onto some cash.

Make sure you always have some cash available for trading. This ways you will be prepared when opportunities arrive.

Never trade stocks on emotion or hope. Trading stocks is not a game of emotion. You need to stay focused and logical. Do not trade a stock because you hope it will go higher, act as if you have ice water in your veins.

These commands were created to help solve this main problem and will never let you down. You need only to remember and use them.

Peter Hill is an author and penny stock adviser. He runs an informational website and newsletter with a wealth of penny stock recommendations, strategies and trading guides. Make sure to take advantage of this and much more at http://www.DoublingStocksNewsletter.com

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Information, the Key to Successful Penny Stock Trading

January 31st, 2008 by admin


Every individual wants a secure future. We all work day and night in order to secure our old age and retire with some funds at our disposal to make a comfortable living. Every other person looks out for ways to double their current earnings, and not only this, also to save enough to retire peacefully.

Penny stocks are one way which can give you a handsome income along with your other sources of income, or for hose people who want to double their savings with less investment. Penny stocks give you a higher rate of return, and a better mode of making a good profit. You can get all the information you need about penny stocks through online websites and stock trading companies.

The lack of information on penny stock companies forms a big hindrance in investing in penny stocks, especially, if the investor is someone trading for the very first time. Penny stocks, if invested upon after proper research and armed with all the information required for a smoother trade, can give you sure shot profits and that also with a very less investment.

Lack of information can only result in risking your investment. Although, a lot of investors usually do stock trading with their experience as the only tool in successful trades, but this can be quite risky at times. Penny stock traders are a helpful resource form whom you can get all the information required. There are a number of consultants and experts who can be of help regarding information on penny stock trading for investors.

Beware of any fraudulent companies which publish false information on their penny stock trades. This can only be avoided if you have enough information and are trading with a trustworthy penny stock broker, gather as much information as you can through reliable resources of penny stock companies, ask expert’s advice and keep an open eye on the movement of the penny stock trades. Information is the only key to secure and profitable penny stock investments.

Most investors face problem in tracking and analyzing penny stocks. To be successful in stock market investment, you need to maintain a watch list of hot stocks and monitor the list regularly. Good news is Marl is an automated stock trading software which can really simplify the analyzing and monitoring job. Do you want to take the benefits of Marl? Subscribe to “Doubling Stock” newsletter now which costs $47 only. Subscribers of doubling stock newsletter are often making more than 102% profit per trade. Marl has made a record of identifying wining stock with more than 91% accuracy for last 12 months.

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Market Leaders

January 31st, 2008 by admin


Relying on the primary market indexes and studying their daily price and volume interplay is one of the best possible methods for analyzing the market’s behavior and determining its overall direction and health. The second best method is studying the current and recent action of market leaders. Remember that history shows three out of four stocks follow market down trends. When you see the best and the strongest stocks unraveling one after the other on heavier-than-average volume, that’s telling you something about the market. Your job is not to figure out why it’s happening, but to recognize that it’s happening, and know what you need to do about it.

What Defines a Market Leader?

A market leader is a company that dominates its industry in a number of key fundamental and technical measurements. On the fundamental side, it will boast strong profit and sales growth, high return on equity or fat profit margins. Those gains are almost always the result of an innovative product or service that satisfies a need among consumers or other businesses.

The other side of leadership is technical, meaning the company’s stock performance. By definition, market leading stocks outperform the vast majority of other securities. Huge winners during the 1990s, such as Cisco Systems and Microsoft, were outperforming the market averages, and at least 87% of all other stocks, before they launched into their massive price advances.

Notice that in definition of market leaders didn′t include “number one in name recognition or brand awareness.” That is not a relevant factor when determining a leading stock. Everyone knows and recognizes brand names such as Sears and Campbell Soup, but are their fundamental and technical performance numbers saying they are the current leaders in their respective industries? You should not be influenced by how many commercials a company has, how many magazine covers have featured the company’s CEO, or how often you eat the food or buy the gas for your car. When the market hits bottom and rallies toward new highs, it’s best to forget about most of the old familiar names. Historical research shows that just one of every eight past leaders reasserts itself as a leader in the next bull phase.

Follow Mainly the New Leaders

After a clear-cut downturn, the market will try to rally at some point. But the first few days of an attempted upswing tell you nothing about prospects for success. Instead, wait for a follow-through day, a powerful confirmation of the market’s new uptrend. A follow-through occurs usually between the fourth and tenth day when one of the major indexes shows a booming gain of 1.7% to 2% or more on greater volume than the day before. In this kind of market follow-through strength, the first stocks that move to new high ground out of sound chart bases on big volume are typically the new leaders in the next bull phase. They’ll likely go up farther and faster than other stocks, even after the others gather strength.

Because these new leaders don′t show up and identify themselves until the market has definitely hit bottom and turned upward with a confirming follow-through day, you must be on your toes, ready to act decisively. New leading stocks will continually evolve from proper patterns for the next three months. In the period that follows, identify stocks leading their industry groups. Place them on a watch list and see how they perform. Look to see whether the big mutual fund managers are moving into these stocks. Investor’s Business Daily has a daily list, “Where the Big Money’s Flowing,” and also “52 Week Highs &amp Lows” that separates the leaders from the market laggards. Track the daily price and volume action of the leaders against the major indexes. When you see new stocks hitting price highs as the market also rises, it indicates a healthy rally and overall upward trend. At the same time, when the majority of these new big leaders begin to break down, it could be your cue to an emerging overall downtrend.

Tips to turn $1000 into $1,00,000, articles on stock market trading and investing. To get detail about the stock market and finance visit http://www.2stocktrading.com

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The Worst Case Scenario - Part II

January 31st, 2008 by admin


Back in early 2000, somebody overlapped the NASDAQ chart with that of the Dow going into the 1929 crash. They were almost identical - except that the NASDAQ had much further down to go. The market pundits said: NO-O-O-O WAY! 2000 is NOT 1929, too many safeguards in place now which we did not have back then to prevent the meltdown. The rest is history.

Since it tends to repeat itself, I thought it would be interesting to compare what the markets did AFTER the crash - then and now. Now, these comparisons do need tweaking. Back then the Dow was the leading index. The NASDAQ led in the 90s, so it only made sense to compare the declines between those two. However, it’s best to use the S&P 500 for the post 2000 crash recovery as it was led not by technology but by financials and basic materials.

The Dow made a double bottom in late 1932 - early 1933. So did the S&P 500 in late 2002 - early 2003. The Dow then rallied through the rest of 1933 before correcting in the first half of 1934. So did the S&P 500 in 2003 - 2004. The Dow rallied through the rest of 1934, and all of 1935 and 1936 before turning down sharply in late 1937. So did the S&P 500 in 2004 - 2007. The Dow looks pretty nasty in the first part of 1938 before stabilizing and recovering somewhat in the second half. Well, that’s where the S&P 500 is right now. The 1937-38 correction took the Dow all the way down to the 1934 levels. That’s about 1,150 for S&P 500, give or take.

Now, this is not a prediction. And, again, the argument can be made that I am leaving out too many variables. Could be. This is simply a worst case scenario based on the assumption that chart patterns repeat as they reflect human behavior. It simply pays to be prepare.

Slav Fedorov is a full time stock trader and founder and managing member of TradingZoom, LLC - a provider of proprietary trading data that swing traders can put to work right away. http://www.tradingzoom.com/

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The Worst Case Scenario - Part I

January 31st, 2008 by admin


What IF:

- Merrill Lynch, Fidelity, Charles Schwab and everybody else in the investment advisory / money management industry advise their clients that stocks are going to decline substantially from current levels and they (the clients) will be better off in cash for a while?

- Hedge funds announce their intention to short the market?

- CNBC, The Wall Street Journal and the rest of the financial media set off alarm bells by telling their viewers/readers to stay out of the market?

- Financial planners / wealth managers switch their clients’ asset allocations to cash?

The markets are going to crash, because WHO is going to be buying? Pretty obvious - and therefore highly unlikely.

But what is much less obvious (but equally, if not more important) is the simple fact that Wall Street lives off the 1% it charges for managing assets. Pretty simple: no assets - no money. Wall Street is not about to commit financial suicide by telling clients to go into cash because who is going to be there afterwards to tell them it’s safe to get back in? So, in the best interest of their clients Wall Street MUST stay in business by continuing to charge the 1% fee - no matter WHAT the market is doing. In short, it must retain the assets at any cost.

Americans are optimists. Most don’t feel comfortable shorting. They don’t want to hear bad news. Who does? The government does not want to acknowledge it fell asleep at the helm. Institutions do not want to admit they stuffed workers’ pensions with subprime junk. And investors do not want to hear that they are poor. So, here is the worst case scenario:

You will NEVER hear the truth. People are going to be told what they want to hear - namely that everything is fine and that they should stay put by maintaining a long-term perspective. Regardless of what happens.

The global economy is too complex for anyone to be able to read it correctly. Everything is subject to interpretation. There is too much self-interest and enough statistics out there to support any scenario at any given point in time. And they will all sound equally convincing.

What’s the intelligent investor to do? Whom should he believe? The answer is actually pretty simple: stop listening to predictions and follow the market. The tape does not lie because it records actions, not words.

It’s true that the chart only records the past, and you can′t trade in the middle of it. But charts reflect decisions made by humans, and human nature never changes. By comparing the current charts to previously recorded patterns investors can fairly accurately anticipate what is most likely to happen next - without ever listening to a single soul - because it has happened in the past.

To be continued.

Slav Fedorov is a full time stock trader and founder and managing member of TradingZoom, LLC - a provider of proprietary trading data that swing traders can put to work right away. http://www.tradingzoom.com/

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The Market Is As The Market Does

January 31st, 2008 by admin


To be highly accurate in any pursuit, you have to carefully observe and analyze the object at hand. The stock market is no different. The idea may seem simple enough, but even with their hard-earned money on the line, you’d be surprised at how often people argue with the facts that are right in front of them. Many investors are sometimes misled by the shouting of opinions and prognostications. Listening to opinions about the market is one of the riskiest things you can do as an individual investor. You want facts, not personal opinions. If there’s one lesson most learned from the 2000 three-year bear market, it’s that arguing with the facts and simply hoping for the best is the easiest way to lose your shirt. Let’s start by dissecting market activity and talk about what it’s trying to tell you.

The Interplay of Price and Volume

The stock market is governed by the same forces as individual stocks: supply and demand. Throughout history, the best way to determine the market’s health and direction has been to view the daily price and volume action of the three major indexes: the Dow, the S&P 500 and the Nasdaq. Volume bursts in these key indexes show where mutual funds and other institutional investors, the biggest driver of stock prices, are moving.

In an up-trending market, you normally want to see prices and trading volume rise somewhat in tandem. This shows a market under accumulation, with more positive volume than selling volume: a good sign. On down days, in the majority of cases, you want to see volume lessen. This shows a lack of any significant selling another good sign. But take note of days when the market shoots up in price to new highs on lighter volume. This shows a lack of institutional buying, which might be a warning sign.

Even in the best of all bull markets, there will be days on the way up when selling suddenly overtakes buying when an index closes down for the day on heavier volume than the day before. This shows distribution, and it is a potential red flag if that type of action continues to occur. One day of distribution is not enough to turn a rallying market downward, nor is it necessarily cause for alarm. Rather, take it as a signal to start watching the market more closely to see what happens next. Market cycles over the last 50 years indicate that it usually takes three to five distribution days over a period of up to four weeks to turn the market’s uptrend into a downtrend. Every major market top in the past 100 years has revealed this negative price-and-volume action prior to the market’s downtrend.

Many people think of the great crash of 1929 as being a sudden, inexplicable event. Not so. In late 1929, just before the Dow gave way to a selling avalanche, the index posted a flurry of down days, each on heavier volume than the previous session, all of them saying to investors: “Get out.” This activity pinpoints the mass exodus by institutional or professional investors the heart and soul of the market. You might be asking how a market event almost 80 years ago tells us anything about today’s market. The answer is that in the stock market, as in many things, history continually repeats itself because human nature doesn’t change.

The Nasdaq flashed similar warning signs in the spring of 2000, although almost everyone missed it because they were caught up in the predictions and hysteria of the moment. By March 30, the market had logged a series of heavy distribution days, a sign that a number of mutual funds, pensions or other big players were selling stock. Investor’s Business Daily’s market column “The Big Picture” warned people to get off margin, begin raising cash and only remain invested with extreme caution not because of what we thought the market was going to do, but because we were reading what the market was actually telling us day by day. It was telling investors: “Sell.”

An investor who remains inflexible during a confirmed market downturn and argues with the market facts will usually suffer the consequences. The name of the game is to preserve profits you have built up in a bull market instead of riding them back down through a bear market period.

Articles on stock market trading, finance, investing tips and many more stock trading related information. If you want to make money out of this visit http://www.2stocktrading.com

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