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Should you wait for the stock market to crash before buying stocks?
Wiki User
∙ 12y ago
The astute and knowledge answer is HELL NO! The reasons are many but I will give you two:
1. You can't time the markets..not even Ken Fischer and Warren Buffet DON'T time the markets.
(and)
2.You lose returns in the market when you wait to time it due to being on the side lines/fence (in cash) and not having your money work for you through consistent investing known as dollar cost averaging.
So you would be stupid to wait for a market crash since they don't happen very often and you lose all the potential returns while you wait with your head stuck in the sand!
Wiki User
∙ 12y ago
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What was the result of market speculation?
Stocks became overvalued.
Why did buying stocks on margin in the 1920's not only cripple the stock market but investors as well?
The question of whether buying stocks on margin eventually leads to severe market pullbacks has been the subject of intensive debate. Bull markets are typically associated with rising margin debt as Investors buy stocks on margin to leverage gains through the use of debt. The increased stock buying permitted by margin debt contributes to the strength and longevity of a bull market but this reverses during market pullbacks if investors receive margin calls and are forced to liquidate stocks. Margin buying by itself is not a dangerous practice and there have been prolonged periods during which margin debt remained at high levels and the stock market continued higher. The problem associated with margin debt is that a sudden adverse macro economic event that panics investors into selling causes prices to drop which can put margin buyers into a negative equity position. At this point the forced liquidation of stocks due to margin calls that cannot be met results in a self perpetuating event whereby lower prices force more selling which in turn causes further price declines. It can therefore be argued that margin debt per se does not cause a market selloff but can result in a steeper price decline than would have occurred if margin debt did not need to be liquidated.
What are the two factors that played a major role in the start of the Great Depression?
The first factor was a series of downturns in the economies of individual nations during the second half of the 1920s. The second factor was an international financial crisis involving the U.S. stock market.
The stock market crash which resulted in the Great Depression was caused by the selling of stocks due to what?
A declining real estate market.
Who was involved in the stock market crash of 1929?
Business people who bought, sold, & invested in stocks were surprised when the night before they were fairly rich, but the next day they became poor since the stock market crashed & they lost all their money.Hope this helps! :P
What should I know about the stock market before I begin buying stocks online?
I don't advise buying stocks online without a broker, but if you're intent on it, you need to evaluate how much risk you want to take and carefully research the companies you wish to invest in.
The New York Stock Exchange is one location for buying selling or trading stocks Which is an abbreviation for another market for buying and selling stocks?
NASDAQ
What are the benefits to buying penny stocks?
The benefits to buying Penny Stocks is that the market has no place to go, but up and you can easily double or triple your profits in as little as a year.
What is Stock acquisition from open market?
It is the process of buying stocks of a particular company from the stock market. The number of stocks that can be acquired in a particular day would depend on the number of stocks that are available for sale on that trading day.
What is an example of an investmet?
Buying stocks on the stock market, or using your savings to start a business.
What are the things need to be watched before buying stocks?
risk
What do mean by buying and selling of securities?
Buying and selling securities refers to the stock market usually. It is the buying and selling of stocks and mutual funds to make a profit.
What are reasons to avoid buying stock online?
Some of the reasons to avoid buying stocks online are hidden fees, panic buying, ordering the wrong type of stock, and placing market orders in a volatile market.
How can a person make money in the stock market?
by buying and selling stocks majorly aside acting as a broker or jobber in the secondary market.
How did buying on margin allow more people to invest in market?
Buying on margin allow people to buy more stocks with only a fraction of the cash needed to buy those stocks. These allowed more people to invest in the stock market that would not afford to come up with the full cash to buy the stocks in question.
What do you call blackmailing a company into buying its stocks at above market value on threat of a hostile takeover?
Greenmail
How does someone find out about buying stocks online?
The best way to find out buying stocks online is to first consult a finance agent or a family member or friend who understands the stock market. Once appropriate knowledge is gained, one can go to an online broker, open an account and start buying stocks online.
