meskalepeska | 2006-12-21 16:34 | perskaitė: 709
2006.12.22 The Start of a Bull Market The bottom of the market beginnings at a time when the Stock Market is effeminate and the ecumenical population is demoraliz

The Start of a Bull Market

The bottom of the market beginnings at a time when the Stock Market is effeminate and the ecumenical population is demoralized. At this point most capitalists sell after having braved out a long and torturous bear market. This extreme temperament found at a bottom is always incoherent and undeserved. Now the market is underestimated and is a dicker. Savvy investors, the “smart money”, purchase bargain stocks knowing that they will be capable to sell them higher in the approximate future. Smart money purchasing, called aggregation, causes stocks to rise. The smart money frequently consists of NYSE specializers, Nasdaq Market Makers, circumvent fund traders and corporate insiders. These traders have approach to data that the general public does not.

Rising stocks sooner or later advance the respect of mutual funds, as billions of dollars of capital is inaugurated into the market place. Mutual fund investment crusades the Stock Market to approach in a powerful manner. Much of the brace large trends are provided by mutual finances and other institutional investors. After the stock market has arrived at, stocks are now evenhandedly valued and are no longer conceived bargains. The smart money is now modeling on a large profit, as well. The intermediate investor is still skeptical, however.

As bull market upshots unfold, retail investors commence to take interest in stocks. Retail investors, or the inexperienced little guy, make up the vast absolute majority of investors. This group does not empower for a living. Retail investors often make investiture decisions based on what they read in fiscal magazines, from their brokers and from tips from acquaintances. At this point, the smart money sells, or circularizes, the now overestimated stocks to overconfident marketing investors.

The Start of a Bear Market

After mutual funds and merchandising investors are to the full invested, the market is overbought. This means that there is no more immediate payment to fuel the rally. The market can only go in 1 direction: down. All it takes is just a breath of negative news and the market breaks down under its own burden. Investors promptly realize the market is made of dope and mirrors, as frauds or other ill-treatments come to light.

When panic merchandising starts, a market will always capitulation more immediate than it had ascended.

Oftentimes, as everybody heads for the expiration at the same time, there isn’t anyone conformable to buy the stock. This can be peculiarly calamitous for margin users as they grow profoundly indebted to their brokers. Bankruptcy is the common result for these foolish risk taker. The majority of merchandising investors don’t sell even as the market is plumping. This crowd keeps holding on to stocks in desires that the market will convalesce. As the market plumbs 25pct, then 50pct the average retail investor unwisely holds on, in concluded denial that the bull market is over. Finally merchandising investors sell all stock they own plumping the market even further. This mass hegira is called capitulation.

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2006 12 21 18:58     #8129
Suprantamai paaiskinta :yes taip viska ir isivaizduoju.. tik reik spet i traukiny su "smart money" ir islipt kartu
2006 12 21 19:30     #8131
kol nemoku pats buti "smart money"