By: Amit Kheterpal
They say that when the going is good all the people jump onto the stock market bandwagon thinking that they will make pots of money and will retire rich but with like everything else making money in the market takes patience, time and some amount of risk taking.
People when they see others making money they start buying stocks at times when the market is high and hope that the stocks that they touch will give them amazing returns. Those people who jump into the stock market on a high will almost never make money and forget that the stories that they heard on the street were of the people who has picked up stocks when they were low.
Buy low and sell high is the guru mantra of the stock market but is almost never followed by the majority of the people. Most of the people buy when the stocks are at high price and from that point the returns are not much.
To buy when the stocks are low recession is a good time. The reason is simple enough that even though the stock has solid fundamentals and strong foundations the stock gets beaten down. However that company or stock has all the abilities to be back on its feet when the tide turns. The only reason in the recession this stock is down is because of lack of demand.
In times of recession most of the people are either not buying because they have either lost their jobs or they are simply conserving cash. The minute the economy improves people will get jobs and will start spending money in more vigorous manner.
Good companies have in recessionary times already shed extra flab as well as introduced cost cutting measures and form that point onwards if they have strong demands of their products it will be win win situation as the operating profit margins will be very high.
That translates into very high stock prices once the economy rebounds and the investor sentiment begins to improve.
Stock buying is all about opportunities to buy stock at low and recession is that very opportunity that you are waiting for. However you would argue that how will the money come to buy the stocks as you are in the same boat as others and may not have a job or you will be conserving cash. Very true but as I said earlier that some amount of risk taking is involved and you need to take some risk and buy some stocks to not miss the opportunity in recessionary times.
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Start investing in Dow Futures trading
They say that when the going is good all the people jump onto the stock market bandwagon thinking that they will make pots of money and will retire rich but with like everything else making money in the market takes patience, time and some amount of risk taking.
People when they see others making money they start buying stocks at times when the market is high and hope that the stocks that they touch will give them amazing returns. Those people who jump into the stock market on a high will almost never make money and forget that the stories that they heard on the street were of the people who has picked up stocks when they were low.
Buy low and sell high is the guru mantra of the stock market but is almost never followed by the majority of the people. Most of the people buy when the stocks are at high price and from that point the returns are not much.
To buy when the stocks are low recession is a good time. The reason is simple enough that even though the stock has solid fundamentals and strong foundations the stock gets beaten down. However that company or stock has all the abilities to be back on its feet when the tide turns. The only reason in the recession this stock is down is because of lack of demand.
In times of recession most of the people are either not buying because they have either lost their jobs or they are simply conserving cash. The minute the economy improves people will get jobs and will start spending money in more vigorous manner.
Good companies have in recessionary times already shed extra flab as well as introduced cost cutting measures and form that point onwards if they have strong demands of their products it will be win win situation as the operating profit margins will be very high.
That translates into very high stock prices once the economy rebounds and the investor sentiment begins to improve.
Stock buying is all about opportunities to buy stock at low and recession is that very opportunity that you are waiting for. However you would argue that how will the money come to buy the stocks as you are in the same boat as others and may not have a job or you will be conserving cash. Very true but as I said earlier that some amount of risk taking is involved and you need to take some risk and buy some stocks to not miss the opportunity in recessionary times.
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Start investing in Dow Futures trading