How to Monitor Stock Trends?
Investing money in the average stock market is a complex business, and monitoring stock trends can be extremely time consuming!
Fortunately, there are many tools to help you out, including software, reports available for purchase, the businesses pages of the newspaper, and data available from previous trends that can help you predict what is likely to happen in the future. In order to use these tools to best understand investor market trends, you will need to have at least a basic understanding of the terminology commonly used.
This article will give you an insight into some of the words and phrases that you will come across frequently as you are learning how to monitor stock trends in the market place. If you have recently begun to invest your money in the stock market, you will probably find that there is a vast amount to learn.
You may initially feel overwhelmed by the huge amount of information out there - try not to. You will learn over time, and soon you will be the expert that friends turn to for investment advice!
The Average Stock Market
In recent years, the appeal of the stock market as an investment option has lured many people in. More and more individuals are choosing to buy company stock or shares in the hope of getting a high return on investment. Compared to many other investment options, the stock market is associated with high risk, but for a lot of people, this is outweighed in importance by the potential for incredibly high return on investment.
And no wonder this is the case - as a society, we have unprecedented wealth. We have more opportunity for investment and in turn we become compelled to make more. On the stock market, you can earn more - more than your friends and neighbours, more than your parents ever did. But you do need to be smart about it.
You need to do your research. You need to learn the terminology, so that you can monitor stock trends and stay one step ahead of the game.
Stock Trends
The trend of the investor market refers to whether stock prices are moving up or down. There are three main kinds of stock trend, or market trend: primary stock trends, secondary stock trends, and secular stock trends. Depending on the length of time over which you wish to invest your money and increase your wealth, you may consider that you need to be able to monitor all of these, or just one may be important.
Primary stock trends generally span at least a year.
There are three main primary stock trends that you will hear about as you take the time to learn how to best monitor your stock investments.
The first, a bull market, means that stock prices are going up. This is a good time to buy - you may be able to purchase company stock for a relatively low prices, and based n the confidence of the large proportion of investors, you can feel confident that you will get a good return on your investment over the next twelve months.
The second primary market trend is called a bull market. This is not a good time to buy - prices are dropping, and are likely to continue to do so over a minimum of twelve months. A bull market means it is time to get out - to sell your shares.
The third primary market trend is a market bottom, and this is the best time to buy stock. This is the movement from bear market to bull market: stock prices have fallen considerably; they have reached the lowest that they are going to go. Buying in a market bottom means you can buy cheap stock and rest assured that you are likely to see an increase on your investment for the twelve months or more.
Secondary Stock Trends
Secondary stock trends are much shorter term, and happen within a primary market trend, going in the opposite direction. So if, in generally, prices have been going up for six months, then they go down for twelve months, the they begin going up again for another six months or so, the one month period during which they drop is a secondary market trend.
The worst thing you could do in the example given above would be to panic as soon as there is a drop and sell your shares while they are at a comparatively low point.
Finally, secular market trends are really long term, spanning at least five years but more often up to 25 years. They are composed of a few primary stock trends.
Fortunately, there are many tools to help you out, including software, reports available for purchase, the businesses pages of the newspaper, and data available from previous trends that can help you predict what is likely to happen in the future. In order to use these tools to best understand investor market trends, you will need to have at least a basic understanding of the terminology commonly used.
This article will give you an insight into some of the words and phrases that you will come across frequently as you are learning how to monitor stock trends in the market place. If you have recently begun to invest your money in the stock market, you will probably find that there is a vast amount to learn.
You may initially feel overwhelmed by the huge amount of information out there - try not to. You will learn over time, and soon you will be the expert that friends turn to for investment advice!
The Average Stock Market
In recent years, the appeal of the stock market as an investment option has lured many people in. More and more individuals are choosing to buy company stock or shares in the hope of getting a high return on investment. Compared to many other investment options, the stock market is associated with high risk, but for a lot of people, this is outweighed in importance by the potential for incredibly high return on investment.
And no wonder this is the case - as a society, we have unprecedented wealth. We have more opportunity for investment and in turn we become compelled to make more. On the stock market, you can earn more - more than your friends and neighbours, more than your parents ever did. But you do need to be smart about it.
You need to do your research. You need to learn the terminology, so that you can monitor stock trends and stay one step ahead of the game.
Stock Trends
The trend of the investor market refers to whether stock prices are moving up or down. There are three main kinds of stock trend, or market trend: primary stock trends, secondary stock trends, and secular stock trends. Depending on the length of time over which you wish to invest your money and increase your wealth, you may consider that you need to be able to monitor all of these, or just one may be important.
Primary stock trends generally span at least a year.
There are three main primary stock trends that you will hear about as you take the time to learn how to best monitor your stock investments.
The first, a bull market, means that stock prices are going up. This is a good time to buy - you may be able to purchase company stock for a relatively low prices, and based n the confidence of the large proportion of investors, you can feel confident that you will get a good return on your investment over the next twelve months.
The second primary market trend is called a bull market. This is not a good time to buy - prices are dropping, and are likely to continue to do so over a minimum of twelve months. A bull market means it is time to get out - to sell your shares.
The third primary market trend is a market bottom, and this is the best time to buy stock. This is the movement from bear market to bull market: stock prices have fallen considerably; they have reached the lowest that they are going to go. Buying in a market bottom means you can buy cheap stock and rest assured that you are likely to see an increase on your investment for the twelve months or more.
Secondary Stock Trends
Secondary stock trends are much shorter term, and happen within a primary market trend, going in the opposite direction. So if, in generally, prices have been going up for six months, then they go down for twelve months, the they begin going up again for another six months or so, the one month period during which they drop is a secondary market trend.
The worst thing you could do in the example given above would be to panic as soon as there is a drop and sell your shares while they are at a comparatively low point.
Finally, secular market trends are really long term, spanning at least five years but more often up to 25 years. They are composed of a few primary stock trends.