Do You Get Scared When the Market Falls?
Why?
If you do, you are employing the wrong strategy and you should STOP right Now!
Companies are bought and sold every day on "emotion" and not on "value". That's why the market goes UP and DOWN! If you believe fundamentals rule the price of a stock, think again.
The price is dictated by the simple rule of "supply" and "demand". More sellers means that prices will go lower - it's that simple!
There are certain creatures in the market known as, "market makers". They buy at one price and sell at another. They aren't fussy - they just make profits.
A pro trader gets excited when the market falls and when the market rises. However, a stock holder starts to go green when the market falls.
What happens when a nation has so much debt that more and more money is required to service the debt? Do you think there will be some selling of stocks? What happens when traders lose confidence in the economy?
The stock market goes down!
You see, the market works according to two forces: GREED and FEAR. Do you really want to be a stock holder? Wouldn't you rather be a stock trader or an option trader - where you play the market UP or DOWN? It may require a little work but I suggest you learn to trade the market UP, DOWN or SIDEWAYS, because this is exactly what pro traders know how to do and if you don't you will fail as a trader.
About the author: Joseph Sgro writes THE 10 Simple Rules Ezine which presents the best trading resources out there on the net, which smart traders use to create trading profits. Visit the BLOG: http://tutorhelpcomau.blogspot.com
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Copyright (C) 2005 Joseph Sgro