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Bull Market

Firstly the bull is a buyer and the bear is “always” a seller. The bull buys because he wants to make money, (don’t we all?). In a “bull market” novice traders rush into every reasonable opportunity they can afford. These trades are not based on good management or risk control.
Please try not to get caught up in this market hype. If you start to chase prices upwards there is a very good chance you will pay too much for them, only to watch the share price start to recede when the buying panic is over.

A bull market tends to be associated with increasing investor confidence, motivating investors to buy in anticipation of further capital gains. In describing financial market behaviour, the largest group of market participants is often referred to, as a herd. This is especially relevant to participants in bull markets since bulls are herding animals. A bull market is also described as a bull run.

Bear market

The bear is more complicated and can sell for different reasons. This can be just to lock in a profit because he thinks the share price is about to go down. The most fearful of the bears sets the lowest price for the day. This is done by offering to sell his shares at this level.

A bear market tends to be accompanied by widespread pessimism. Investors anticipating further losses are motivated to sell, with negative sentiment feeding on itself in a vicious circle. Prices fluctuate constantly on the open market; a bear market is not a simple decline, but a substantial drop in the prices of a range of issues over a defined period of time. By one common definition, a bear market is marked by a price decline of 20% or more in a key stock market index from a recent peak over at least a two-month period. However, no consensual definition of a bear market exists to clearly differentiate a primary market trend from a secondary market trend.

hourglass.jpgMore than any other factor, it is the primary, or underlying, direction of the stock market that will determine the success or failure of a trading position. A stock can have a fabulous story, great fundamentals, a good technical position, strong sponsorship and yet turn into a bad trade if you are going long and the market is headed down. The same is true of an undistinguished stock that just goes up because it is being carried along in a strong up market. Stock Market Timing is a Stock Market direction system that forecasts the future short term direction of the market.

Isn’t it a smart play to cash in your stocks and ride out a down market? You can preserve your capital and jump back in when stocks begin moving up again. As logical as that strategy sounds, it is fraught with peril for most investors. There are several problems with “playing it safe” by cashing out and you may, in fact, create additional risks in doing so.

The first problem is knowing for sure that the market is turning bearish and not just in a temporary bad mood. A prolonged downturn doesn’t announce itself with great clarity. If you are wrong and the market shakes the blues and rebounds, you’ll be stuck on the sidelines buying back in to rising prices. You sold because prices were dropping and now you’re buying back in to rising prices.

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Make the Stock Market crash work for you Losing money never feels good, but keep your cool and you can boost long-term returns.

Last Tuesday The Dow Jones Industrial Average had its biggest one day point drop in around six years on surging volume at the New York Stock Exchange. In this single trading session, all of the market’s gains year-to-date were taken back and actually turned negative. Don’t panic! It takes nerves of steel to shake off a stock drop like the one that came Tuesday – even conservative index-fund investors are more than 3 percent poorer. But the world’s best investors not only shake them off – they thrive on them.

They know sell-offs are common, perfectly normal, and even healthy. When stocks go way up in a hurry, their prices become unrealistically high. Only by falling occasionally (and even sharply) in the short run can stocks continue to rise in the long run – without the agony of today’s drop, the ecstasy of tomorrow’s good returns becomes impossible. If ever there’s been a good time to panic, that had to be it. But as the old saying goes, things are darkest before the dawn. If you’d sold out of stocks at the end of a depression, you would have missed the returns that followed.

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Stock Market The financial media constantly reports about momentum stocks that are achieving tremendous gains during the same day. And even when you can see online investors that make $5000 on a single trade, it is also not unusual to watch beginner stock investors lose a great deal of money because of a series of unwise decisions.We all know that in the stock market is always possible to watch certain stocks go up more than 100% within a few hours to days. This is especially true in the 4th quarter of the year where the buying frenzy starts in Wall Street.

The financial media constantly reports about momentum stocks that are achieving tremendous gains during the same day. And even when you can see online investors that make $5000 on a single trade, it is also not unusual to watch beginner stock investors lose a great deal of money because of a series of unwise decisions.The problem is that if you don’t know how to pick among stocks & how to properly approach them you could end up wasting dollars instead of making your wallet happy. You can’t just trade stocks like if you where gambling.

The first step in becoming a profitable trader is to start learning how to pick and trade stocks. There are many “ultimate” trading systems out there, but you need to test them in order to discover which ones help you the most. That’s part of your homework as a stock trader. Test several strategies and then test them again until you are able to produce consistent winnings.

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Here are three words you rarely hear: “Get rich slowly”.

The fact is that very, very few people get rich quickly. It simply doesn’t happen. If it did, we’d all be rich and the world would be a lovely place. It isn’t, sadly. I tell you this not to burst your bubble, but to help you understand the practical reality of how money works.

Lottery winners are among the few who get rich quickly, and statistics show that within 18 months, most of them get poor quickly. Never having had much money, people generally don’t know how to handle it when they win big, and they tend to spend their way to the poorhouse at great speed.

Enough bad news. It is possible to “get rich”, highly possible. The catch, if you choose to look at it that way, is that it takes both time and effort. You can get rich slowly, which doesn’t sound like fun, but is in fact enormously satisfying when you pull it off. All it takes is the application of common sense and an adult attitude. You are capable of both.

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Seriously, you dont….It’s not about being a genius, it’s about getting started.
I advise people on personal finance including banking, budgeting, saving, and investing. How to save your money-tricks, how to budget, and using credit cards, etc. How to make more money by investing? What are stocks? Bonds? Mutual funds? What can you do to start today and maximize returns?

All you need is three ingredients, income, discipline and time. Chances are, you already have two of them, income and time. All you need to do is add the third, discipline.

Here’s how it works: Say you start with nothing, invest $500 (of your income) a month (a healthy discipline), and let your money ride (over time) in diversified investments. Long term, the stock market returns at least 10% annually. Assuming a 10% return, you’d have $102,000 after 10 years, $380,000 after 20 years, and $1.1 million in 30 years.

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Credit cards can be an excellent tool to help you manage your finances. But sometimes we make poor choices, or sometimes the events in life take us beyond our expectations and we are left to foot the bill. Perhaps you have had a few months of extra, unexpected expenses that you are now paying for. What can you do?

Gather together all of your credit card bills and add up the amount that you owe. Factor in the extra expenses you haven’t heard on your credit cards since you receive those bills. Add to that about ten or twenty per cent, which is the “whoops, I forgot about that” factor. Then, with that figure, start shopping around for a loan.

Get the loan and pay off your credit card bills. If you think that you may still use your credit cards, you may want to hide them away so that you reduce the temptation to use them. Now, instead of having several credit card bills at a high interest rate due by the end of the month, you now have one bill that is due once a month at a lower rate. This is called consolidation. At first glance it may not seem obvious why you’d want to do this but there are two reasons:

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Over time, I have realized that without certain good habits in place, my finances quickly get out of order. Perhaps the most important habit that I have learned is regular savings. Long terms goals are described as goals that have a lasting effect should a person’s present actions be religiously maintained.
__________How much did you spend last month? Get started at iwillteachyoutoberich.com
Regularly contributing to savings account is important on several levels. Of course, it’s good to have an emergency fund available for any of the countless situations or save for planned major expenses for which you would need extra cash.

Even though I know the importance of savings I will never make it without a plan. Somehow its always easy to spend all the money I have, no matter how much it is. I therefore treat savings like paying a bill, and I guess this is what it means when they say pay your self first. The key elements to making this strategy work are quite simple, first it has to be done regularly. If you miss your telephone or utilities bill this month, you will be expected to pay double next month. You can’t cheat your utilities bill out of a month so don’t do it to yourself.

To figure out how much you can save every month, you have to have a budget and commit to at least that much. If you say well you will save whatever is left, you will probably never end up saving anything or if you are lucky you might end up saving a lot less than what you actually should have. Budget for so many dollars, and put it in savings before you have a chance of spending it.

So how about you? Do you have any tricks you use to help keep yourself disciplined in saving money regularly? If not, why not give this a try?

Financial planning, something we all know we need to do, but always put off to the future. Financial planning is hard simply because it requires financial discipline, which is difficult to have in this consumer society. However, financial planning is very important because you want to retire one day, be financially stable in the event of an accident, or unexpected loss of a job. Regardless of when you begin, the basics remain the same.

Here are my top keys to getting ahead financially. Once you have made financial planning part of your routine, it won’t seem so difficult. But getting your financial planning started can be the most difficult thing. These tips will help motivate you to make financial planning one of your main goals.

No matter how much or how little you’re paid, you’ll never get ahead if you spend more than you earn. Often it’s easier to spend less than it is to earn more, and a little cost-cutting effort in a number of areas can result in big savings. One of the biggest factors fighting against financial planning is debt, especially credit card debt. If something starts off as a small debt it turns into a big one simply because you were not paying off the debt. Financial planning means you have a plan and paying off debt should be the first goal of your plan.

Another financial planning tip is to invest. Financial planning means you are saving for the future in many cases, so you will want to take money you earn today and invest in the stock market, in bonds or a mixture. Saving your money with the help of financial planning will help money grow all on its own.

A great financial planning tip is budgeting. You won’t be able to save unless you know what you spend. Make budgeting part of your financial planning and you will realize saving is not so hard. This is tough for people to understand and often what they resist most when they begin financial planning. Choose one area at a time and set a goal for incorporating it all into your lifestyle.

Sometimes, teaching people how to get rich gets me a bad rap. “You just want to make money,” I’ve been told. Or “money isn’t everything.” These gems, while not particularly eloquent, do have a point. Actually, I’d prefer that these people ask me why I teach people to be rich. It’s important to ask yourself, too: Why do you want to be rich?

Take a second and think about it.

Do you want to have a luxurious lifestyle? Do you want to travel? To eat at nice restaurants? Maybe you want to start your own business.

I believe it’s really important to consciously think about why you want to be rich. If you don’t, it’s easy to get caught up in a race to get more and more money without ever knowing why.

“But Robin,” you might say, “I’m really smart. I got a 4.0 at Stanford and I don’t really want to take the time to think about this. I just want some cash, playa!!”

After I point and laugh at you, I’ll actually get serious. Trust me–take an hour to write it down and compare your long-term goals to what you’re actually doing on a day-to-day basis. It’s easy to say and harder to do, so I’ve taken my own advice below. And hopefully, I can use these things to explain why I teach people to be rich. It’s not just money–far from it.

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