I often hear people swear that they make money using the rules of technical analysis. Do they really? The answer, , is that they do. People make money and profit indeed by using all sorts of strategies and techniques . The real question is: Do they make more money than they would investing in a blind index fund that mimics the performance of the market as a whole? Do they … [Read more...]
How does Stock Market functions?
The expression ’stock market’ refers to the market that enables the trading of company stocks (collective shares), other securities, and derivatives. Bonds are still traditionally traded in an informal, over-the-counter market known as the bond market . Commodities are traded in commodities markets, and derivatives are traded in a variety of markets (but, like bonds, mostly … [Read more...]
What causes a significant move in the stock market?
There are unlimited number of factors that can cause the stock market to move significantly in one direction or another. This can include things like economic data, geopolitical events and market sentiment, among a myriad of other factors. There is a constant in each of these situations, however. In any stock market move, whether up or down, there is a significant difference … [Read more...]
Dow’s theory:in detail
A theory which says that the market is in an upward trend if one of its averages (industrial or transportation) advances above a previous important high, it is accompanied or followed by a similar advance in the other. The theory also says that when both averages dip below previous important lows, it's regarded as an indicator of a downward trend. Dow created the … [Read more...]
Zurich Axioms and Zero Coupon Bond
Zurich Axioms it was formulated by a group of Swiss brokers on the Wall Street after the Second World War. Some of the most important axioms on successful investing are: Risk Worry is a sign of health, not sickness; if you are not worried, you are not risking much. Greed Take your profit too soon. Conquer your greed and become a better speculator than 99% of others. Hope … [Read more...]