0
There is no good and bad about buying in a down market.
Without a trading strategy, money is made in all market conditions... find a strategy that works for you in both up markets and down markets.
Knowing when to buy, why to buying and where your exits are are more important than up or down market direction.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
Can I buy and sell crude oil like stocks?
Yes. That is called Commodity trading. Oil is a commodity and is traded in the commodities market.
What happens when stock prices are down?
When stock prices are down, people with lots of money buy up the low priced stocks. They do so in anticipation that the stocks will eventually go back up and they will be able to sell at a nice profit.
What are the actions of producers in the circular flow model?
sell good and services i the market
If the market risk premium were to increase everything else beign equal the value of common stock would do what?
Value of the common stock will go down.As market becomes riskier market participants adjust expected risk premium and start to demand higher returns, consequently they begin to sell stocks as they do not satisfy their newly adjusted expected risk premium. As a result stock price goes down.
Why did stock prices decline in the late 1929?
They went down because everyone wanted their money when the banks were very poor.Answer:Many people, including many in the general public were buying stocks on "margin". Everyone thought the stock market was a sure bet to make money. If the stocks value went down the people had to come up with more cash or sell the stock. Others tried to benefit by pushing the stocks lower. Since many people had large parts of savings in the stock market many lost their savings. Many businesses (including banks) had their excess cash invested in the market. When it "crashed", many people lost everything, banks didn't have money to cover all of their deposits and failed, businesses lost their operating capital, their customers lost their money and everything came tumbling down.
When is the best time to sell stocks andd shares?
It is the best time to sell stocks and shares when the price for them is at a high. It wouldn't be good to sell them when the market is crazy and prices are low.
Who sells stocks?
Stocks or Shares are created by businesses when they incorporate; this is denominated the Primary market. In order to sell their shares to investors, and the public in general (the secondary market), the corporation must be registered with the Stock Exchange. Stockbrokers, who are members of the stock exchange, are the ones who sell (and buy) registered stocks.
When is a good time to sell your stocks?
The best time to sell your stocks is when the economy in what ever country is going up, This is the time that people go to stocks markets and buy.
How critical is market timing when purchasing stocks?
When purchasing stocks, market timing is pretty important. Market timing is deciding whether to buy or sell a stock in an attempt to predict the future of the stock, helping you make money.
Where can advice be found for good stocks to invest in?
Advice can be found for good stocks to invest in on E-insure. This company specializes giving information about stocks, which to buy and which to sell at what time.
Do investors in the stock market have a beneficial or harmful effect on the companies whose stocks they buy or sell?
buy it
Where can I get information on penny stocks?
you can get good information on penny stocks from places that sell and trade the stocks.. a broker can help you with any questions and you are always taking a risk..
Stocks--What They Are and How to Use Them?
In today's market it is incredibly important to have a good understanding of the stock market, investing, and stocks. Stocks may seem like a completely foreign object, but they are actually quite simple to understand. Stocks are the pieces of ownership in a company that can be bought and sold as investments. When a company is formed and goes public, the company is made up of the money that people have put into it - its capital. If you divide that company into equal pieces you have shares or stocks (the words are interchangeable in most cases). People can buy or sell or trade these stocks and have ownership in the company. If you own five shares of a ten-share company you now have half ownership of the company. You pay for your stocks and then hope the company's value goes up, as it will make selling your stocks easier and give you a 'return' or profit. This is where the phrase 'buy low, sell high' comes from. When you buy your stocks at a good low price, then sell them when the asking price is much higher, you will see a large profit on your stock. Your investment portfolio will likely have a large amount of stocks in it. Today people are advised to diversify their portfolio, partly by buying stocks in different industries. In the past people would just buy in one type of business (dot-com businesses, for example), but when that industry would suffer (the dot-com bust) they would lose a lot of money. This is because the value of their stocks went down and they couldn't make a profit when they sold them. Trading on the stock market requires some research and foresight. You need to have an idea of what to expect, and also be able to weather the storm when the stocks are going down. A stockbroker can help with this, as they study the stock market and work with you to buy and sell profitable stocks. You can make a fair amount of money if you 'play' the market well, but beware of stock market crashes as well. This is when everyone is losing money and selling their stocks, which drives prices down and means less profit for all. Stocks can be not only a great investment, but also a good way to enjoy making money - just be sure to put in the time necessary to be successful.
What is the stock exchange in financial market?
A stock exchange is the place where stocks/shares are listed and where investors go to buy/sell their stocks. Ex: National Stock Exchange, India
Do short selling stocks have a higher or lower return rate?
Short selling stocks is risky because there are no guarantees of what the market share will be after the sell. The return rate could be high or low, depending on if the stocks fell as predicted.
Is it true that the stock market crashed after stock prices became overvalued?
Stock markets are crashing in the moments when there are less money and interested investors in a very short time, so owners can not sell their stocks. This make them nervous and they are offering the stocks for cheaper prices. This is spreading to other stocks, because people like to sell those stocks in order to buy the cheaper options. This goes viral and if there are no money stock market crashes...
What are the trading mechanism of forward market?
if the market goes up sell spot buy in future market if market goes down buy spot sell in future market
