Well i am i die-hard investor in stock market and want to invest in stock-market thoroughly and continuously but according to the latest census and latest happenings across the globe i am not in state to invest in stock market. I don't know the reason behind this but according to the latest article regarding the stock market crash that i had encountered recently has left me in a haze and probably that's the reason why these is happening, and looking at the roller coaster ride of Oil, gold and commodities i am in a bit of dilemma whether there is goona a stock market crash for 2016. Is these gonna be true or I am to much worried about this!! Help me out guys!!!
You should always be worried about a crash. If you were to get into the market you should get prepared before entering. First thing is to decide how you feel about risk. Risk can be controlled but not eliminated. Example, you have 50000 to invest in stocks. You are willing to risk 1% per trade and want to have 10 different stock positions. So that means you can invest 5000 per stock. Stock X happens to be selling at $50 per share and moving averages are rising, so you can buy 100 shares. Looking at the chart you (will learn) see recent clear support at $47 so you set a stop order at $45. If it drops below support to 45 the stop order sells it. Buy at 50 stop at 45 limits your risk to 5 per share for max loss of 500. That's how you control risk. Once you establish your aversion to risk then you can decide what type of trades you want to do like short, intermediate, long term etc. and establish rules for buying and selling. So no you are not worried too much but you can learn to manage your fear. Good luck
Well i am always prepared for the worse to happen but the last encounter with the stock-market was not that good and that had left me in complete dilemma whether to go for these or not. And i had done a Bit of R&D for these and i had found some quality stuff and data that created a doubt in my mind. Specially, these one had created a sense of animosity in me Stock-market crash
In my limited time (5 years) in the stock market on my own investments, I can tell you that the articles on the stock market's demise or the next crash is just around the corner are frequent and appear to be reasoned out. They are not. Sooner or later though someone will accidently be right and from that point on will claim to be KING. (Even a broken clock is right twice a day) The reality is that time frame of action to result is critical. I say that because if you pull up a chart of the S&P, Dow Jones, NASDAQ, or any well known company stock and look at the line. Look at a 6month chart then change to a year, then change to 3 years, then 10, then 20. The further you go out in time the more you can see the "rhythm" of the market. If you were to investigate the downturns you would see that they are driven by the economy. If you notice the uptrend over the past 6 years and compare with the previous 2 uptrends prior to the past several downturns you will see that we are close to where the rhythm points to a downturn but not a CRASH. This is merely an indication to run under a yellow flag and do not go full in or out. Watch the economy GDP is a big one, yield curve (difference between long term and short term rates on treasuries) and be aware of political events around the globe that could have an impact on recession. Recession is the biggie that will bring on the bear market downturn (again, not CRASH) Now, the shorter the term your investments are you need to drill down into the economic details that might impact the actual sectors you are trading in. Lastly, even with the time spent looking at this you will still be surprised by what happens to a stock when you expect it to do something else. :-( That's why this stuff is not easy.
In my opinion, as the things are changing in US Economy, few things indicating stock market crash in 2016. US elections are there in 2016 and U.S. companies are relying more and more on foreign countries for growth. As the global economy is doing so poorly. The International Monetary Fund has sounded the alarm, warning of a possible new financial crisis. Since March 2009, the NASDAQ has soared more than 250% and the NYSE is up 130%, while the S&P 500 has gained 182% and the 30-company-strong Dow Jones Industrial Average is up more than 145% (and I think this is the bubble which is being created by the big players). On the other hand real unemployment rate is also increasing month over month. All these could lead to a stock market collapse.
We can agree to disagree I guess. I'm just not seeing a "bubble" anywhere except maybe a potential one in the bond market due to the fed purchase of all those bonds during easing period. Other then that not seeing a bubble. As for employment, my only comment there is that if it is real it will cause issues in terms of consumer spending which will bring revenues down with will lower demand which will lower production etc etc and we will slip into recession not collapse. Signs will be their and charts will go down but collapse is a strong word, don't see it....
