I have just weathered through once again a very volatile market and this made my experience in self dirtied investing more exciting. It’s not at nosebleed valuation levels as far as price/earnings go, but it is by some other measures, such as the The Ratio of Total Market Cap (TMC) Relative to the United States Gross Domestic Product (GDP) featured above. Mailexpress – A stock market crash certainly provides opportunities for anyone who is on the sidelines. I put some money into a mutual fund around the last stock market bottom in March 2009, and it has done quite well. I had no clue about the stock market other than as the playground of the wealthy and a graveyard for amateurs. Still, they have a new interest and a new reason to read the news and think about what changes can mean.
Like many, they thought that playing the market was gambling and they were not happy at my interest in what they saw as a mix of horse racing, lottery tickets and Russian roulette. Now, after a few years of watching me thrash around as I learned the basic strokes, my family talks about the stock market with less fear, gives advice, reads for tips, asks how it’s going but still stays on the edge of the pool with just damp toes. I have to say though that my parents did have their own history of wealth creation through small business development but not in the smoke and mirrors of the market. He lost sleep over wild gambles on Government Bonds and even Money Market Mutuals.
I also watched how I reacted to the rise and fall of the market and observed closely how it behaves. I was making them rich, so, as a small defence, I bought some stock in the Bank which has worked out well. If your prediction did not work out and the stock even went lower, then you are in deep do-do as you will have to put up that cash when your broker issues the margin call. Start with creating a practice investment portfolio and learn the stock trading basics.
Looking back now, this would have been helpful in understanding the terms and the tools used in online stock trading and in honing a strategy without putting money into the learning process. They track the news on your portfolio of stocks, the performance of the market in general and other useful information to make you develop a winning portfolio. You can see how much money you have gained or lost, the pattern of your transactions (buy and sell orders), and the news relating to stocks in your portfolio. Notice that each holiday brings us closer to the Great Stock Market Crash of 2008.
Pay attention to the news on your stocks, the volume traded each day and the fluctuation in price and learn from these. Cotter also included his own insights and tips on how to perform well in the stock market. Followings are updates to Comparison of Indian and American stock markets The hub was published on December 12, 2008. I had been periodically updating current data of Indian and American stock markets since then. I have chosen Bombay Stock exchange (BSE) Sensex for Indian stock market and Dow Jones for American stock market.