Is there such a thing as world required rate of return and if there is what is it?
Answers: The minimum rate of return in general is the risk-free rate, which is the rate paid by the lowest risk credit customers. That would be the US, whose debt is guaranteed to be repaid based on its power to tax the people.
This rate is currently 4.25%.
Please be careful about doubleposting.
"Bulltrap" and "beartrap" within the stock souk?
Hi!Could anyone help explain the concepts of "bulltrap" and "beartrap" contained by the stock market?
Many appreciation!
Answers: The Investopedia define Bull Trap:
A false signal indicating that a decreasing trend in a stock or index have reversed and is heading upwards when, in reality, the security will verbs to decline.
A bull trap often cause some investors to buy the stock, but because the stock continues to decline after the initial signal, those who bought in are "trapped" contained by a bad investment.
and Bear Trap as:
A false signal that the rising trend of a stock or index have reversed when it has not.
This can crop up during a bear marketplace reversal when short sellers believe the market will sink back to its waning ways. If the market continues to rise, the short seller get trapped and are forced to cover their positions at difficult prices.
Yes.
There is no such thing as a "bull trap." Generally population want the market to dance higher. No trap in attendance.
A "short squeeze" is when there are voluminous short positions in a stock or within the stock market, and massive buying forces the shorts to buy subsidise (cover) their short position to avoid or reduce losses.
During a Bear Market is unofficially defined as "a decline of 20% or more surrounded by a major bazaar index."
I disagree. Look at any financial stock. Tell me they are not in a serious depression?
A "Bear Trap" is a "false assemble." A market will hold these short spike rallies. The bazaar or a stock can climb even 3-20%+ in a morning, only to plunge thereafter. The Bear Trap muster can go on for soon or a week or so.
Then the bears (short sellers) see lighter volume on the buy side signaling that the buyers are done buying. The bear (sellers) move in and start shorting stocks panic the recent buyers to sell.
Examples of Recent Major Bear Traps:
Any up swing surrounded by stock prices during the stock market of 2000-2001. The bazaar continued to plunge for another year (until October 2002).
Bear Traps. Any rally right in a minute and prob through 2008 and maybe 2009.
What is a money open market report? someone here said that's a not dangerous means of access to jump. but its not insured or back.?
i read do the money market until we find out whats up near economy.Answers: Money flea market accounts are simply savings accounts that grant high interest rates than traditional reserves accounts. However, to get that highly developed rate you usually have restrictions on your money such as required information balances.
I individually think high-interest online hoard account are better deal because they offer similar rates of return lacking the restrictions on your money.
A money market side invests in amazingly short term, juice securities, like treasury bills and commercial daily. It's considered very out of danger because its very unlikely that any of the issuers would travel bankrupt surrounded by the next daylight. For example, you lend Intel $100, and it agrees to pay you $101 surrounded by a week. Its unlikely Intel would run into financial problems during this short period of time. There is other a tradeoff between risk and return. All insured instruments will have lower returns than riskier investments.