5 Stock Market Basics You Ought to Know Before You Invest
The number-one thing you can know about the stock market is that it’s unpredictable.
Think of it like a wild bull — and I don’t mean “wildly successful bull market” where everyone is always making money.
I mean literally a wild bull: a large, powerful entity that has zero interest in your personal concerns, happiness, or wellbeing.
Do You Remember Where You Were on October 19, 1987?
While I can’t put the whole day together in my mind (and while many of my co-workers weren’t born yet), I do recall that I had film class that evening. Cecil B. DeMille’s Cleopatra was the film we were breaking down.
It took a while to get to the subject matter at hand, though. The professor was visibly shaken as he walked into the room. He went on to tell us about how the stock market had crashed that day.
When You Feel Market Uncertainty, Look At The Facts
There are times when investors don’t feel very confident because of market uncertainty looming in the air. The past month has been a good example of market uncertainty. So what should you do when these times come? Look at the facts to gain understanding for what is expected ahead. The following list helps us keep a positive perspective while hoping for positive outcomes with trade.
Intraday Market Movements Don't Tell The Whole Story
How many times have you watched a movie, read a book, or just experienced something in life that turned out so different in the end than what you were anticipating? This is very similar to what we are experiencing in the market over the past week and days. In the market we call the changes throughout the day intraday price movements.
Market Supply & Demand
Daily, there are articles and news stories telling us why the market is moving the direction it is. While these do provide reasons for the market to move that’s not what actually causes the market to move.
It’s the action that people take by buying or selling investments that really moves the market. We could have a million reasons for the market to move up or down but without action by investors, nothing happens.
Following along with the blogs of financial advisors is a great way to access valuable, educational information about finance — and it doesn’t cost you a thing! Our financial planners love to share their knowledge and help everyone regardless of age or assets.