Silicon Casino happened in 1994. 1) Consider the P/E ratio of the market as a whole and of your stock in particular. Most of the time, you can ignore the market and just focus on buying good companies at reasonable prices. But when stock prices get too far ahead of earnings, there's usually a drop in store. Compare historical P/E ratios with current ratios to get some idea of what's excessive, but keep in mind that the market will support higher P/E ratios when interest rates are low.
"The whole thing is rigged." There may be just enough truth in those statements to convince a few people who haven't taken the time to study it further. One of the more cynical reasons investors give for avoiding the stock market is to liken it to a casino. "It's just a big gambling game," some say. The stock market has gone virtually nowhere for 10 years, they complain. While the market occasionally dives and may even perform poorly for extended periods of time, the history of the markets tells a different story.
Many people will find that hard to believe. My Uncle Joe lost a fortune in the market, they point out. Often, however, paying careful attention to financial statements will disclose hidden problems. Moreover, good companies don't have to engage in fraud-they're too busy making real profits. 2) The individual investor is sometimes the victim of unfair practices, but he or she also has some surprising advantages. No matter how many rules and regulations are passed, it will never be possible to entirely eliminate insider trading, dubious accounting, and other illegal practices that victimize the uninformed.
Hardly anyone has gotten rich by investing in bonds, and no one does it by putting their money in the bank. Knowing these three key issues, how can the individual investor avoid buying in at the wrong time or being victimized by deceptive practices? 3) It is the only game in town. Outside of investing in commodities futures or trading currency, which are best left to the pros, the stock market is the only widely accessible way to grow your nest egg enough to beat inflation.
If your company is under priced and growing its earnings, the market will take notice eventually. 4) Be patient. Predicting the direction of the market or of an individual issue over the long term is considerably easier that predicting what it will do tomorrow, next week or next month. If you enjoyed this short article and you would certainly such as to receive additional details concerning game คาสิโนออนไลน์ kindly check out our webpage. Day traders and very short term market traders seldom succeed for long. Here's a simple conclusion If you've been avoiding the market because you believe it's a casino, think twice.
Those who invest carefully over the course of many years are likely to end up as very happy campers...notice, we didn't say gamblers. Even poor market timers make money if they buy good companies. Look for red flags in the financial news, such as the beginning of the recent housing slump or the international credit crisis. Of course, severe drops can happen in times of low interest rates as well.
Don't let fear and uncertainty keep you from participating. Remember that the market goes up more than it goes down. Over the long haul (and yes, it's occasionally a very long haul), stocks are the only asset class that has consistently beaten inflation.
"The whole thing is rigged." There may be just enough truth in those statements to convince a few people who haven't taken the time to study it further. One of the more cynical reasons investors give for avoiding the stock market is to liken it to a casino. "It's just a big gambling game," some say. The stock market has gone virtually nowhere for 10 years, they complain. While the market occasionally dives and may even perform poorly for extended periods of time, the history of the markets tells a different story.
Many people will find that hard to believe. My Uncle Joe lost a fortune in the market, they point out. Often, however, paying careful attention to financial statements will disclose hidden problems. Moreover, good companies don't have to engage in fraud-they're too busy making real profits. 2) The individual investor is sometimes the victim of unfair practices, but he or she also has some surprising advantages. No matter how many rules and regulations are passed, it will never be possible to entirely eliminate insider trading, dubious accounting, and other illegal practices that victimize the uninformed.
Hardly anyone has gotten rich by investing in bonds, and no one does it by putting their money in the bank. Knowing these three key issues, how can the individual investor avoid buying in at the wrong time or being victimized by deceptive practices? 3) It is the only game in town. Outside of investing in commodities futures or trading currency, which are best left to the pros, the stock market is the only widely accessible way to grow your nest egg enough to beat inflation.
If your company is under priced and growing its earnings, the market will take notice eventually. 4) Be patient. Predicting the direction of the market or of an individual issue over the long term is considerably easier that predicting what it will do tomorrow, next week or next month. If you enjoyed this short article and you would certainly such as to receive additional details concerning game คาสิโนออนไลน์ kindly check out our webpage. Day traders and very short term market traders seldom succeed for long. Here's a simple conclusion If you've been avoiding the market because you believe it's a casino, think twice.
Those who invest carefully over the course of many years are likely to end up as very happy campers...notice, we didn't say gamblers. Even poor market timers make money if they buy good companies. Look for red flags in the financial news, such as the beginning of the recent housing slump or the international credit crisis. Of course, severe drops can happen in times of low interest rates as well.
Don't let fear and uncertainty keep you from participating. Remember that the market goes up more than it goes down. Over the long haul (and yes, it's occasionally a very long haul), stocks are the only asset class that has consistently beaten inflation.