Business, Investing, Making Money

How Cyclical Patterns Can Make Share & Forex Traders Money

Handful of Cash Cartoon Graphic

A stock or currency that is at its own yearly high must be judged for the possibility of going higher./lower.  It could be risky to buy unless the upward momentum is there, and the indications that it will likely keep going up are clear.

The width of the range also has a bearing. A stock near the high of a 10-point spread between the high and the low is likely to be less volatile than one near the high of a 50 or 60-point range.

The implication is that if a stock can cruise upward through a range of 50 points, it can with equal ease slide that far downward. Obviously, stocks do not operate forever within predictable ranges. But an issue that has caught investors’ eyes, and has started to run ahead of itself, its group, and the market can be considered to have a future. Its high-low levels of the past can be viewed as less significant, and the investor’s effort can be bent toward determining how far the run will go.

A stock at mid-range presumably has a demonstrated potential for achieving a higher level, but the course of its action should be plotted to see whether it is at mid-range through a series of small ups and downs, or whether mid-range is simply the current point of a downward slide, or, for that matter, the current point of a gradual climb.

A stock or currency at its low should also be examined for hints as to the reasons for this state of affairs. It might best be shunned, but not too quickly.

For if it seems inherently sound, although low in relation to its group or the market as a whole, it may be a sleeper, the kind of depressed, overlooked, out-of-favor stock that offers a fine opportunity for the investor who is not afraid to run against the tide.

Theoretically, at least, this is the kind of bargain that diligent investors are supposed to dig up for themselves. Be clearheaded; most depressed stocks are hovering at low levels for a reason. But the market is capricious enough to low rate many issues for reasons having nothing to do with fundamental values.

The depressed issue usually offers a better possibility for improvement than the generally depressed group. If oils or chemicals or rails are unfashionable as a whole, there is, in most cases, a large reason for it. Customers are over inventoried, sales are down, a competing industry has cut into a market something has occurred which requires a fundamental correction before the industry will again seem attractive.

The depressed market, like the depressed stock, often offers great possibilities, if the investor can satisfy himself/herself that he/she is getting in at a good price point. The low of 1953 was a great buying opportunity. DuPont was under $100, General Dynamics was in the 30’s, Union Carbide in the 60’s, Central & Southwest was at $19 everything that is solid, glamorous, and soaring today was at bargain basement prices.

The alternatives are many. The combination of factors that bear on any one issue at any one time is almost incalculable.

Selling is not necessarily the opposite of buying. While there are the usual factors about the stock, the industry, and the market to weigh, one crucial fact is known: the price you paid. The amount of profit or loss, therefore, is always settled for the investor approaching a decision to sell. If the profit is satisfactory, or the loss insupportable, sell.

There may be additional profits to be made, or the loser may turn around and cut the loss a few points. If you believe you have made ample return on your investment and are ready to take profits, sell. If you are convinced that there isn’t an advantage waiting for the under-performer to perform, sell. You can take the loss, write it off as a tax deduction, and use the funds that you salvaged to get into something else/take advantage of a different opportunity.

How To Make Money Using The Internet To Trade Forex – https://www.mastersofmoney.com/howtomakemoneyusingtheinternettotradeforex/

Risk disclosure: *All investments involve risk. Before making any financial or investment decisions, we highly advise that you seek the advice of a properly licensed and trained investment professional.

Tagged , , , , , , , , , , , , , , ,

About mastersofmoney

Masters of Money, LLC., was founded by Michael "MJ The Terrible" Johnson, to create and sell how to information, to people looking for ways to make and save money. The goal of Masters of Money: Provide the tools, resources, and strategies, to help anyone who wants to be more successful, create the life of their dreams. Masters of Money's products and services list: Opt in email marketing - Online advertising - Social media marketing - Content creation - Content marketing - Internet marketing - Public relations campaigns - Web design - Direct response marketing - Copywriting - Company and / or product branding campaigns - Fundraising - Lead generation - Company and / or product launches - Business consulting - Partnering for profits campaigns - Blogging - Content library development - Content library maximization marketing - Multi-channel marketing creation and consultation - Ghostwriting - Ebook creation - Company continuity programs - Ezine creation - Ezine marketing - Digital newsletter creation - Digital newsletter marketing - Content trading - Information brokering - Company and / or product endorsements - Guest blogging - Business opportunity offers - Create and sell making and saving money strategies and information Company contact information: Foreign Corporation (LTD) AG. d/b/a Masters of Money, LLC. 3839 McKinney Avenue Suite 155-2281 Dallas, TX 75204 Phone #: (512) 297-3535 Fax #: (512) 599-5958 Email: info@mastersofmoney.com Website: www.mastersofmoney.com Blog: www.mjtheterrible.com
View all posts by mastersofmoney →

Leave a Reply

Your email address will not be published. Required fields are marked *