One important aspect of trading the markets is to understand how to feel it’s overall pulse. In the stock market, this is measured by measuring the movements of selected stocks across various sectors to let us know how the market is doing in general. A gentleman by the name of Dow came up with this concept and today we still use his Dow Index for the purpose of measuring the market’s pulse. There are also several others out there, but another popular index of mostly technical stocks is the NASDAQ.
Bull Market – This describes a market where the overall market is rising. Typically, this is measured by the NASDAQ and the Dow Indexes. Experts recommend that you only buy during Bull Markets because the odds are much more in your favor – this is true, but keep in mind there are plenty of stocks that plummet during Bull Markets too.
Bear Market – This describes a market where the overall market is dropping. As with Bull Markets, again we measured this by the NASDAQ and the Dow Indexes. Experts recommend that you only sell short during Bear Markets because the odds are much more in your favor – this is true, but keep in mind there are plenty of stocks that rise during Bear Markets too.
The important thing about using indexes to help your trading was mentioned earlier. During Bull Markets, you can expect 65% or more of all stocks to be rising – so if you look to buy during Bull Markets, the odds are very much in your favor. Of course, the opposite is true with the Bear Markets. Another characteristic of these two markets is that Bull Markets generally last 2-3 years, while Bear Markets last only 1-1 ½ years. So it’s a very good idea for new traders to get in the habit following the indexes early in their learning. This will give you a tremendous advantage.
Building Wealth: It's An Inside Job – Part 2
Let’s quickly review the principles discussed in the first part of building wealth. We established that prosperity consciousness must first be developed mentally to acquire any real wealth. A person that constantly worries about money most likely is living in scarcity consciousness regardless of the size of his or her bank account. We talked about some methods and daily exercises that can be employed to start developing a stronger level of prosperity consciousness. The first exercise uses written affirmations, the second utilizes visualization, and finally we need to become more aware of how willing we are to give and receive prosperity on a daily basis. If we start using these methods, we’ll begin to see gradual changes in our lives that will become larger over time.
Successful Trading – Taking Profits - Part 2
Suppose your position has made a big move and you moved your stop to your purchase price as recommended. Then let’s say your stock continues to make a big move and now we’re asking again the questions we asked back in the first paragraph. The first profit taking technique you can use is a trailing stop. If you moved your stop to your purchase price, then you’ve already used a trailing stop. Now you can continue to move your stop up as the price rises until the market “stops” you out of the position. So in essence, what you’re doing is letting the market decide when to take profits.
Cultivating a Prosperity Mindset: The Foundation of Wealth Creation – Part 1
Creating wealth is more than just crunching numbers and setting financial targets; it's a deeply personal journey that starts from within. Our relationship with money is shaped by our upbringing, cultural background, and individual experiences, which can either propel us towards financial success or create barriers that hinder our progress. To truly build wealth, we must first understand and enhance our prosperity consciousness, aligning our thoughts and actions with the abundance we seek.
