Is the stock bazaar going to get better?
It has be suffering a huge dip.. what's next?Answers: Yes, it will. The one and only question is when. There enjoy been much greater decline than this.
Judging by the Dow Jones Industrials, the market is up in the region of 18% over the last two years, up 50% over the end five years, and about 6000% over the closing 40 years.
Unless you plan on retiring next Tuesday, I don't see the problem!
It will restore your health, the question is when.
Best item to do is follow the shorts. When you see short orders slowing down, we are heading out of the downturn.
It have after every other decline, no matter how severe, and there's no explanation to think it won't this time also. Look at this long occupancy chart of the S&P 500 index since 1950: http://finance.yahoo.com/q/bc?s=%5EGSPC&...
There are some major decline, even crashes, in within but most of them are barely perceptible in the long-term scene.
How long will this decline last and how much further down will it move about? Hard to say, but we didn't start out extremely overvalued approaching we did back contained by 2000, so I doubt this decline will be anywhere near as long or as weighty as that one was.
It will eventually recuperate but you should learn to lift advantage of adjectives this down ward movement.
This site could give you some suitable suggestions on how to make money surrounded by the markets when they jump up or down.
p.s.I personally hope it won't get better for a while because I and making a lot of money shorting.
The stock souk will always recuperate. I am 48, I have see it many times & it can NEVER dance BANG, just the prosess of filter out the weaklings, minnoes etc... In the UK it's sometimes called "a correction" It have to go down B4 the big boys can soar in and product a 'killing'. ( you never get contained by at the bottom & you never sell at the crest of the current ) but if you keep your eye on it you can receive a tidy buck/lb in the midstream... Good luck & satisfied investing
I want to get good at trading shares but know nothing about it, whats the best first step, any recommendations
Answers: The first reccomendation would be to only invest money that you won't need for a long time.
If you get a sudden crash it could take years before your share price regains itself.
I recently joined this web site, which lets you practice buying shares first, so you can see how you would do. You start with 15000 pounds.
check this link.
http://www.share.com/
Hope it helps
based on your age, buy a balanced mutual fund and watch it grow. sticks are risky.
if your want to purchase equity stick to companies that have products to sell as opposed to "start-up". Look to see if the company paid dividends previously and companies that are indexed. Sectors are cyclical, so look for the lows and if you can hold for the long term, you would be ahead. Note that you have to be prepared to losses as one cannot predict the future only, look at trends.
The thing to understand is that, unless you work in investment banking or have experience with advanced mathematics, it's going to be very difficult for you to make money consistently.
Here's why.
First of all, financial markets are very random. What this means for you is that, the more you trade, the more chance you stand of seeing your money dwindle away. It's a form of gambling. A zero gum game.
Secondly, the people who have the edge are the investment banking people and company insiders. Investment banks have all kinds of advantages that you don't. It's their business. Company insiders know what their shares are worth, and you can bet they don't advertise to the public when they feel their shares are priced too high or low.
Consider this: many professional traders end up losing large sums of money. This includes floor traders and people working for companies whose business is finance. If these people lose their money, what edge do you have?
The reason so many people lose their money is because of the unpredictability of the markets, plain and simple. Nobody, not even many experts, can consistently make money from it.
There are plenty of professional traders who make a million dollars. In many cases, this is due to pure luck, not skill. And in many cases, their million disappears due to chance.
You will find many people who are supporters of something called "technical analysis." These are methods of "reading" the price behavior of stock charts and trying to decipher trends and other patterns.
If I were you, I would be wary of giving much credence to this. There may be something to be said for crowd psychology affecting market movements, but in general your success rate using technical analysis is going to be no better than flipping a coin. Technical analysis tries to read patterns into randomness, which does not work.
All that said, if you still want to trade, then my suggestion is real simple: learn what "50% retracement means" and base your trades on this. The reason is, this is a general pattern that "tends" to show up in markets. It is more reliable than any other pattern. Even at that, it's not very reliable. But at least it's something.
Financial markets are not purely random but they exhibit largely random tendencies. A purely random market will always retrace price movements. The amount of time or "steps" it takes is random (unpredictable).
A "real" financial markets goes through a lot of corrections and retracements. This is the result of an interplay between the day-to-day randomness and other conditions (news events, speculation, insider buying, fundamental conditions) which cause deviations from randomness.
If you limit yourself to trading the so called "50% retracement" areas, you stand the highest probability of catching some portion of these moves in your favor.
Any other trading method, especially for someone not involved in the business, will have a much reduced rate of success.
Looking at retracements will have its failures as well. But it's the best chance you've got.
You can trade in stocks, futures or currencies, it doesn't matter. It's all the same. Currencies offer you the lowest start up cost (you can open an account for as little as $250) as well as free practice accounts, so this is probably your best bet.
If you live in the United States, be sure to open an account with a company that is registered with the National Futures Association (NFA). This means that they are regulated and will not steal your money.
go to school
What is the safest way to invest money at 5-6% per year?
Answers: I would invest in T-Bills also known as Treasury bills. It is backed by the U.S. government and it will return ~2-3% above inflation. So, it will gives you ~5-6%.
You can also invest in a good bond funds such as PIMCO Total Return.
Short term a CD if you can get 5-6%.
Long term: Treasury Bonds.
T.C.
A CD might have have worked 1month ago. However after the fed reserve cut the rate 125 base points within 8 days, the CD rates have dropped. For example, Bank of America, best offer is 3.85% APY.
http://www.bankofamerica.com/deposits/ch...
Mutual funds are my only suggestion.
If you are talking long-term, I would look at a DRIP Plan.
If you are talking short term, probably CD's.
Put your savings into a high interest account (a)12% APY as I did.
This is the safest way to invest your money.
Contact me for more details (check my profile).
Good luck!