They will justify outrageous P/E's by talking about a new paradigm. 5) Take advantage of periodic panics to load up on shares you really like long term. It isn't easy to do, but following this advice will vastly improve your bottom line. 6) Remember that it's not different this time. Whenever the market starts doing crazy things, people will say that the situation is unprecedented. Or, they'll bail out of stocks at the worst possible time by insisting that this time, the end of the world is really at hand.

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 you loved this posting and you would like to get additional details about atlantis online casino kindly visit our own web site. 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?

I don't know that's why I'm asking you. Day traders and very short term market traders seldom succeed for long. 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. Imagine, too, that all the games are like black jack rather than slot machines, in that you can use what you know (you're an experienced player) and the current circumstances (you've been watching the cards) to improve your odds.

1) Yes, there's an element of gambling, but- Imagine a casino where the long-term odds are rigged in your favor instead of against you. Now you have a more reasonable approximation of the stock market. "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. At the same time, money markets and bonds start paying out more attractive rates. 2) When inflation and interest rates are soaring, the market is often due for a drop...be alert. High interest rates force companies that depend on borrowing to spend more of their cash to grow revenues. If investors can earn 8% to 12% in a money market fund, they're less likely to take the risk of investing in the market. 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.