Friday 27 May 2011

Stock Market Nowadays

Stock Tips
These days, the stock market investors make many mistakes. Then they try to find out what happened to some classical ideas of investing in the stock market, Stock Tips and why old-time approaches do not work. Is stock market the same or it changed? How the age of worldwide economical integration, new technologies, and global problems affect the stock market investing? No doubt, in the last decade stock investing changed. Among the major changes are:

Globalization (strong economical dependencies, accessible global stock exchanges).
Technologies (instant delivering news, fast-triggered automatic trading systems).
Investors' psychology (high sensitivity to news, more irrational behavior).

The stock market of the last decade characterized by faster stocks' price movements, lesser predictability, and stronger dependencies on global factors. Due to the Internet, the news becomes much stronger factor too. Under influence of news, modern investors are prone to give up a rational behavior and follow temporal emotions. Specific information can drive the market easily through investors' fast feedback. The mentioned above three new-age changes have up-trend character. The Stock Tips stock market has a mixed trend-cyclical character. Let's assume that the new-age recent trend will continue and semi-cyclical character of the market will be in force. Therefore, mostly traders, not long-term investors, may play the stock market in the future.

As we know, a stock's price movement is a result of supply and demand. There are several factors that traditionally have an effect on the supply-demand balance, and consequently, form a stock's price. These are: company's fundamentals, industry-market conditions, global and national economies, different types of news, analysts' and experts' opinions, technical analysis signals, seasonal and cyclical fluctuations, the investors' psychology, etc. Evidently, the key to successful investing is the ability to predict these and other factors.


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