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how to make money in stocks and how to get rich_30

Author: how to make money in stocks and how to get rich

The daily Dow Jones Industrial Average represents an average of thirty

large, basic industry stocks in America. It is one of the objects you

want to observe arid study carefully.

The difficult-to-recognize but meaningful changes in the behavior of

the market averages at important turning points are the best indicators

of the condition of the whole market.

Study the General Market

Chart Every Day

The general market should be studied closely every day, since reverses

in trends can begin on any one day. I emphasize this practical method

rather than that of interpreting other subsidiary indicators that are supposed

to tel you exactly whathe market should be doing or listening

to the many stock market letter writers or technical analysts that pore

over twenty indicators and tell you what they think the market should

be doing. Market letersometimes may create doubt, uncertainty, and

confusion in an investor's mind. Markets tend to go up when people

are skeptical and disbelieving.

Learn to interpret a daily price and volume chart of the general market

averages. If you do, you can't get too far off the track. You really won't

need much else unless you want to argue with the trend of the market.

Experience teaches you that continually arguing with the market can

be very expensive. That's how people go broke!

How You Can Identify Stock

Market Tops

When market indexes peak and begin majoreversals, individual

investorshould take action imediately and raise 25% or more cash by

seling stocks athe market prices (use of price limits on orders is not

generaly recomended).


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