Success Trading: More Basic Terminology for New Traders

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 ? 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.

Chuck Cox is a Technical Writer and Industrial Scientist by professional with a background in statistics. He has used mathematical and statistical methods to invest and trade in the stock, futures, and options markets. Chuck has owned various businesses and presently operates several websites. To investigate a new business idea, visit his website, http://www.earncashathometoday.com/trad ing-stocks.htm

---

The American Age of Inflation is Over

"The American Age of Inflation is finished." So says economist Robert Samuelson in his December 2nd Washington Post column.This type of refrain is common. We often hear that this or that is ended... Read More

Fundamentals of Option Pricing

When one begins to consider an option, it is very important to figure out how the premium is calculated. Option premiums depend on a variety of factors including the time left to expiry... Read More

Invest or be Pink Slipped

Firing an employee seems to be easier and easier for corporations. Up until now you allowed them to set your clocks. Now its time to fight back! Beat them at their own game.... Read More

Find a Methodology and Minimize Investment Madness

There are many reasons to be investing these days, and too much opportunity to not have your money working for you.However, I believe the majority of people dread having to deal with investment... Read More

Angels Investors and Their Networks

What is an Angel Investor? An Angel is usually a private person who invests in small businesses. The Angel is generally a successful businessperson or entrepreneur who looks to invest in a business... Read More

Your Worst Enemy To Successful Investing - The Media

How do you make your investment decisions and where do you get your information? If you're like most of the people I know, you look to the experts.That's fine, however it's important to... Read More

Chile Leads the Latin Pack

Everyone's talking about China. Don't miss the opportunities in the other CHI..Yes. Chile with an "LE" not "NA"While the whole region is back in favor with investors, it seems appropriate to highlight Chile... Read More

The Three Legged Stool

My paternal grandparents were born near Lake Como, Italy. My grandfather learned how to farm, and he did just that until he died chopping wood at age 88. As a boy, I would... Read More

Preparing to Invest: How to get started

Investments can be a source of great potential earnings. The two most common reasons that a person does not invest are either they do not have the money or they do not know... Read More

Do You Need A Financial Planner?

No matter how much money you make, it pays to keep on top of money coming in and going out. Even if you do a good job of that, there are important times... Read More

Stock Market Retirement Investment Plan

For a successful retirement investment plan to work in the stock market, some 'reasonably sure' assumptions would have to be made:The retirement investment plan must take into consideration the one prevailing constant in... Read More

Short Selling for Investors

Shorts. Let's see. If there are shorts there must be longs. Which is best? Longs or shorts?If you are trading in the stock the stock market experts like longs better than shorts. If... Read More

The Key Ingredient To Increase Preconstruction Profits By Over $20,000

One of the greatest preconstruction investing issues that I hear from individual investors is that they can't get access to what they believe are good projects. Regardless if the preconstruction project is a... Read More

Finding False Gold in Penny Stock

As far as traders go, many do not see the penny stock as a solid way to do business. Many believe that dealing with penny stock is a risky business. And it really... Read More

Landlording 101, Tricks of The Trade

Looking Inside Your Tenant's Mind Basic Mind-Reading Report 101 for LandlordsIt goes without saying but I will say it anyway. The better you understand your tenants and their personal situation, the better you... Read More

Discipline in Trading and Investing

The one thing I can think of that most affects both trading and investing has to be self-discipline.Being disciplined is fully 50% of the job of trading or of investing. I don't care... Read More

Dont Catch a Falling Knife

One of the most common mistakes made by inexperienced investors is trying to "catch a falling knife". This is the phrase used to describe the habit of buying stocks that are in "freefall",... Read More

What Is A Fair Market Value, Really? If Youre Going To Trade, Be Sure Its Worth It!

I've been involved in online trading, specifically with stock and index options, for several years. In this time, I've spent a great deal of time thinking about value and the fact that anything,... Read More

Seven Investment Terms Everyone Should Know

For those who have never given their financial future a second thought, the term "Financial Planning" could be a scary one. Investments can be a smart way to invest money for your future,... Read More

Almost Anyone Can Open A Roth IRA!

The Roth is kind of weird until you get used to it in terms of how much you can put in (contribute) each year depending on how much you earn (compensation). Because of... Read More

Ask The SEC

Who is the SEC and why should I ask them anything? The Securities and Exchange Commission in Washington, DC is the government bureau that regulates the securities industry. They make the regulations that... Read More

It Must Be Joe Cockers Market

Agonizing displays of poor theatrics failed to entertain my mind one recent Saturday evening. I scrolled across several television channels hoping for an engaging program. Finally, one particular concert intrigued my senses. There... Read More

Powerful Options Basics Lessons Improving your trading in 180 days.

An option is a traded security that is a derivative product.By derivative product we mean that it is a product whose value is based upon or derived from the price of something else.... Read More

Why You Need To Buy and Sell Gold Coins (Part 3)

Putting Rare Coin Market Cycles to Work for You...Until recently many people believed U.S. stocks would go up forever.However, recent crashes in high tech stocks and the overall stock market correction left many... Read More

Copy Cat or How to Use a Successful Trading System

How many books have you read about successful traders? How they did this or that and made a fortune and are still doing it. You say to yourself, "I'm going to follow his... Read More

Powerful Hidden Techniques Mystery Formula - The Covered Call Option Trading Buy-Write Strategy

For better or worse, most option trading investors purchase stocks with the intent of holding their shares for an extended period of time.We do this mainly because the media and industry professionals have... Read More

Porters Five Forces Analysis

If you've ever listened to Warren Buffett talk about investing, you've heard him mention the idea of a company's moat. The moat is a simple way of describing a company's competitive advantages. Company's... Read More

Investing & Online Stock & Share Trading- The Stock & Share Markets are Booming But Be Warned

I had the pleasure of being invited on a friend's yacht to sail in a race on Sydney Harbour yesterday. On board, as one of our motley crew, I met a top ranking... Read More

Before You Invest You Must Read This

It is important to answer the following questions before you begin to invest any of your money. The answers to these questions will help to guide you to when, what, where, and how... Read More