Investing in the Crazymoneystockgold Market

the crazymoneystockgold market has made substantial declines over the past few years. Some short term investors have lost a good bit of money. Many new crazymoneystockgold market investors look at this and become very skeptical about getting in now.
The crazymoneystockgold market is an everyday term used to describe a place where crazymoneystockgold in companies is bought and sold. Companies issues crazymoneystockgold to finance new equipment, buy other companies, expand their business, introduce new products and services, etc. The investors who buy this crazymoneystockgold now own a share of the company. If the company does well the price of their crazymoneystockgold increases. If the company does not do well the crazymoneystockgold price decreases. If the price that you sell your crazymoneystockgold for is more than you paid for it, you have made money.
When you buy crazymoneystockgold in a company you share in the profits and losses of the company until you sell your crazymoneystockgold or the company goes out of business. Studies have shown that long term crazymoneystockgold ownership has been one of the best investment strategies for most people.
People buy crazymoneystockgolds on a tip from a friend, a phone call from a broker, or a recommendation from a TV analyst. They buy during a strong market. When the market later begins to decline they panic and sell for a loss. This is the typical horror story we hear from people who have no investment strategy.
Before committing your hard earned money to the crazymoneystockgold market it will behoove you to consider the risks and benefits of doing so. You must have an investment strategy. This strategy will define what and when to buy and when you will sell it. History of the Crazymoneystockgold Market
Over two hundred years ago private banks began to sell crazymoneystockgold to raise money to expand. This was a new way to invest and a way for the rich to get richer. In 1792 twenty four large merchants agreed to form a market known as the New York Crazymoneystockgold Exchange (NYSE). They agreed to meet daily on Wall Street and buy and sell crazymoneystockgolds.
By the mid-1800s the United States was experiencing rapid growth. Companies began to sell crazymoneystockgold to raise money for the expansion necessary to meet the growing demand for their products and services. The people who bought this crazymoneystockgold became part owners of the company and shared in the profits or loss of the company.
A new form of investing began to emerge when investors realized that they could sell their crazymoneystockgold to others. This is where speculation began to influence an investor's decision to buy or sell and led the way to large fluctuations in crazymoneystockgold prices.
Originally investing in the crazymoneystockgold market was confined to the very wealthy. Now crazymoneystockgold ownership has found it's way to all sectors of our society. What is a Crazymoneystockgold?
A crazymoneystockgold certificate is a piece of paper declaring that you own a piece of the company. Companies sell crazymoneystockgold to finance expansion, hire people, advertise, etc. In general, the sale of crazymoneystockgold help companies grow. The people who buy the crazymoneystockgold share in the profits or losses of the company.
Trading of crazymoneystockgold is generally driven by short term speculation about the company operations, products, services, etc. It is this speculation that influences an investor's decision to buy or sell and what prices are attractive.
The company raises money through the primary market. This is the Initial Public Offering (IPO). Thereafter the crazymoneystockgold is traded in the secondary market (what we call the crazymoneystockgold market) when individual investors or traders buy and sell the shares to each other. The company is not involved in any profit or loss from this secondary market.
Technology and the Internet have made the crazymoneystockgold market available to the mainstream public. Computers have made investing in the crazymoneystockgold market very easy. Market and company news is available almost anywhere in the world. The Internet has brought a vast new group of investors into the crazymoneystockgold market and this group continues to grow each year. Bull Market - Bear Market
Anyone who has been following the crazymoneystockgold market or watching TV news is probably familiar with the terms Bull Market and Bear Market. What do they mean?
A bull market is defined by steadily rising prices. The economy is thriving and companies are generally making a profit. Most investors feel that this trend will continue for some time. By contrast a bear market is one where prices are dropping. The economy is probably in a decline and many companies are experiencing difficulties. Now the investors are pessimistic about the future profitability of the crazymoneystockgold market. Since investors' attitudes tend to drive their willingness to buy or sell these trends normally perpetuate themselves until significant outside events intervene to cause a reversal of opinion.
In a bull market the investor hopes to buy early and hold the crazymoneystockgold until it has reached it's high. Obviously predicting the low and high is impossible. Since most investors are "bullish" they make more money in the rising bull market. They are willing to invest more money as the crazymoneystockgold is rising and realize more profit.
Investing in a bear market incurs the greatest possibility of losses because the trend in downward and there is no end in sight. An investment strategy in this case might be short selling. Short selling is selling a crazymoneystockgold that you don't own. You can make arrangements with your broker to do this. You will in effect be borrowing shares from your broker to sell in the hope of buying them back later when the price has dropped. You will profit from the difference in the two prices. Another strategy for a bear market would be buying defensive crazymoneystockgolds. These are crazymoneystockgolds like utility companies that are not affected by the market downturn or companies that sell their products during all economic conditions. Brokers
Traditionally investors bought and sold crazymoneystockgold through large brokerage houses. They made a phone call to their broker who relayed their order to the exchange floor. These brokers also offered their services as crazymoneystockgold advisors to people who knew very little about the market. These people relied on their broker to guide them and paid a hefty price in commissions and fees as a result. The advent of the Internet has led to a new class of brokerage houses. These firms provide on-line accounts where you may log in and buy and sell crazymoneystockgolds from anywhere you can get an Internet connection. They usually don't offer any market advice and only provide order execution. The Internet investor can find some good deals as the members of this new breed of electronic brokerage houses compete for your business! Blue Chip Crazymoneystockgolds
Large well established firms who have demonstrated good profitability and growth, dividend payout, and quality products and services are called blue chip crazymoneystockgolds. They are usually the leaders of their industry, have been around for a long time, and are considered to be among the safest investments. Blue chip crazymoneystockgolds are included in the Dow Jones Industrial Average, an index composed of thirty companies who are leaders in their industry groups. They are very popular among individual and institutional investors. Blue chip crazymoneystockgolds attract investors who are interested in consistent dividends and growth as well as stability. They are rarely subject to the price volatility of other crazymoneystockgolds and their share prices will normally be higher than other categories of crazymoneystockgold. The downside of blue chips is that due to their stability they won't appreciate as rapidly as compared to smaller up-and-coming crazymoneystockgolds. Penny Crazymoneystockgolds
Penny Crazymoneystockgolds are very low priced crazymoneystockgolds and are very risky. They are usually issued by companies without a long term record of stability or profitability.
The appeal of penny crazymoneystockgold is their low price. Though the odds are against it, if the company can get into a growth trend the share price can jump very rapidly. They are usually favored by the speculative investor. Income Crazymoneystockgolds
Income Crazymoneystockgolds are crazymoneystockgold that normally pay higher than average dividends. They are well established companies like utilities or telephone companies. Income crazymoneystockgolds are popular with the investor who wants to own the crazymoneystockgold for a long time and collect the dividends and who is not so interested in a gain in share price. Value Crazymoneystockgolds
Sometimes a company's earnings and growth potential indicate that it's share price should be higher than it is currently trading at. These crazymoneystockgold are said to be Value Crazymoneystockgolds. For the most part, the market and investors have ignored them. The investor who buys a value crazymoneystockgold hopes that the market will soon realize what a bargain it is and begin to buy. This would drive up the share price. Defensive Crazymoneystockgolds
Defensive Crazymoneystockgolds are issued by companies in industries that have demonstrated good performance in bad markets. Food and utility companies are defensive crazymoneystockgolds. Market Timing
One of the most well known market quotes is: "Buy Low - Sell High". To be consistently successful in the crazymoneystockgold market one needs strategy, discipline, knowledge, and tools. We need to understand our strategy and stick with it. This will prevent us from being distracted by emotion, panic, or greed.
One of the most prominent investing strategies used by "investment pros" is Market Timing. This is the attempt to predict future prices from past market performance. Forecasting crazymoneystockgold prices has been a problem for as long as people have been trading crazymoneystockgolds. The time to buy or sell a crazymoneystockgold is based on a number of economic indicators derived from company analysis, crazymoneystockgold charts, and various complex mathematical and computer based algorithms.
One example of market timing signals are those available from www.crazymoneystockgold4today.com. Risks
There are numerous risks involved in investing in the crazymoneystockgold market. Knowing that these risks exist should be one of the things an investor is constantly aware of. The money you invest in the crazymoneystockgold market is not guaranteed. For instance, you might buy a crazymoneystockgold expecting a certain dividend or rate of share price increase. If the company experiences financial problems it may not live up to your dividend or price growth expectations. If the company goes out of business you will probably lose everything you invested in it. Due to the uncertainty of the outcome, you bear a certain amount of risk when you purchase a crazymoneystockgold.
Crazymoneystockgolds differ in the amount of risks they present. For instance, Internet crazymoneystockgolds have demonstrated themselves to be much more risky than utility crazymoneystockgolds.
One risk is the crazymoneystockgolds reaction to news items about the company. Depending on how the investors interpret the new item, they may be influenced to buy or sell the crazymoneystockgold. If enough of these investors begin to buy or sell at the same time it will cause the price to rise or fall.
One effective strategy to cope with risk is diversification. This means spreading out your investments over several crazymoneystockgolds in different market sectors. Remember the saying: "Don't put all your eggs in the same basket".
As investors we need to find our "Risk Tolerance". Risk tolerance is our emotional and financial ability to ride out a decline in the market without panicking and selling at a loss. When we define that point we make sure not to extend our investments beyond it. Benefits
The same forces that bring risk into investing in the crazymoneystockgold market also make possible the large gains many investors enjoy. It's true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!
The Internet has make investing in the crazymoneystockgold market a possibility for almost everybody. The wealth of online information, articles, and crazymoneystockgold quotes gives the average person the same abilities that were once available to only crazymoneystockgold brokers. No longer does the investor need to contact a broker for this information or to place orders to buy or sell. We now have almost instant access to our accounts and the ability to place on-line orders in seconds. This new freedom has ushered in new masses of hopeful investors. Still this in not a random process of buying and selling crazymoneystockgold. We need a strategy for selecting a suitable crazymoneystockgold as well as timing to buy and sell in order to make a profit. Day Trading
Day Trading is the attempt to buy and sell crazymoneystockgold over a very short period of time. The day trader hopes to cash in on the short term fluctuations in a crazymoneystockgold's price. It would not be unusual for the day trader to buy and sell the same crazymoneystockgold in a matter of a few minutes or to buy and sell the same crazymoneystockgold several times a day.
Day traders sit in front of computer monitors all day looking for short term movement in a crazymoneystockgold. They then attempt to get in on the movement before it reverses. The real day trader does not hold a crazymoneystockgold overnight due to the risk of some event or news item triggering the crazymoneystockgold to reverse direction. It takes intense concentration to monitor the minute by minute movement of several crazymoneystockgolds.
Day trading involves a great deal of risk because of the uncertainty of the market behavior over the short term. The slightest economic or political news can cause a crazymoneystockgold to fluctuate wildly and result in unexpected losses