Sunday, July 12, 2009
Why is the Sotck Market so volatile? Two words. Online Trading. Ever since the average joe has been able to login and make an account and trade stocks online the stock market has been volatile. Back when it was just institutional traders things were more stable. The average joe is very panicky and this causes massive fluctuations in the market indexes. This is only going to get worse.
Posted by Mike at 12:55 PM
Many people buy blue chip stocks and hold them for a long time thinking that a long term strategy will work out in the long run. This USED to be true, but nowadays we have blue chip companies going belly up left and right. Enron was considered one of the richest and best companies to work for and they ended up being billions and billions of dollars in debt. Anyone who invested in the long term on this company lost everything. There are many other companies that did the same thing like Worldcom. I don't think this kind of thing would happen to a dinosaur like General Electric but look at what happened with General Motors so anything is possible. I think investing in private companies is the new style of investing.
Posted by Mike at 12:52 PM
Wednesday, July 8, 2009
Well people have been investing in the stock market for a very long time. You can buy stocks and invest on the NASDAQ or the NYSE for example. Most of the tech stocks trade on the Nasdaq. It used to be that you had to use brokers to buy and sell stock and because of this the market was much more stable than it is today because today anyone with an internet connection and $100 can be trading stock. This blog will look to educate it's readers about investing int he stock market as we move forward.
Posted by Mike at 1:10 AM