BASICS OF THE STOCK MARKET
- The stock market is made up of two things — price and volume.
- The market is driven up and down by the buying and selling of large, institutional investors (mutual funds, banks, pension funds, etc.). Small, individual investors just don’t add up to enough activity to sway the market significantly.
- The institutions extensively analyze each company’s financials, industry, products, management, competition, charts, rumors, projections, promises, hopes and dreams, etc.
- When this “big money” decides to add a new stock to their portfolio, they need so many shares, it takes months to buy their position. They must buy slowly so they don’t push the price up too fast – they don’t want others to notice their purchases.
- —– time passes —–
- When the “big money” eventually decides to sell that stock, it takes months to slip out of their position without causing the price to crash.
INSTITUTIONAL INVESTORS HAVE MANY ADVANTAGES OVER YOU
- They have a bigger research staff.
- They have more experience.
- They have bigger and better computers.
- They have insider contacts.
THE BIG KEY: YOUR ADVANTAGE OVER THE INSTITUTIONAL INVESTORS
- The size and necessary slowness of the institutions is a HUGE ADVANTAGE to you, the nimble small investor:
- They take months to buy a position but YOU can buy with one, simple “CLICK”!
- All you need is to find a strong stock (more later about this) and the signal that the institutions are starting to buy it.
- The buying or selling by an institutional investors cannot be hidden – their footprints are obvious in the “tracks” they leave behind.
- Their “tracks” are seen in changes in price and volume.
- A stock under ACCUMULATION (being bought) shows up with rising price and increasing activity, the number of shares traded (known as the volume.)
- When you learn how to interpret those price-volume tracks, you can jump on a rising stock near the beginning of a big rise and ride it up.
I WILL SHOW YOU HOW WIN THE INVESTING GAME
- I will coach you how to easily and quickly select the best stocks with TOP FINANCIALS, in TOP INDUSTRIES with TOP MANAGEMENT.
- Then I will show you how to identify which of these stocks are being ACCUMULATED by the institutions right now.
- REMEMBER: You have one MAJOR ADVANTAGE over the institutional investors — YOU ARE NIMBLE!
- It takes you only a “click” to purchase or sell your stock position!!
- Make sure it is the right stock! At the right time!
I hope we will take this delicious journey together.
If you’d like to know more, sign up for my free nightly newsletter (see the tab at the top of the page) to start learning about the market direction. Buying strong stocks in a rising market works best. If the market is going down, it is very difficult to pick winners. The market direction is much like the tide coming in and going out of the harbor. A rising tide rises all boats but a receding tide causes all boats to sink.
You will then receive information on ongoing classes and workshop I offer.
I wish you, “Many happy returns,”
The Armchair Investor
Contact Charlotte Hudgin with questions at 214-995-6702.
Written and copyright © 2014-2016 by Charlotte Hudgin. All rights reserved.