Want to make money on the side? Did you know you can get extra cash by trading stocks? But, do you know anything about trading stocks and securities? Most likely, you are in the majority of people who know very little, if anything at all. But, that being said, why not try to get a general understanding of this market? Some may argue that to make money from the stock market isn’t so difficult. Anyone can buy stocks in their early stages and simply wait a few months to a year until the share price is double and then sell. Those who want to get involved and make a little money on the side can do so if they can understand stock market basics.
The first thing to understand is what a bull and bear market looks like. These terms coincide with how the investing world would describe current financial market conditions. A bull market is when confidence in stocks or anything being traded (bonds, real estate, currencies, commodities, etc.) are high. Prices of securities are stable and are continuing to perform well and rise for a certain time period. This timeframe can range from months to even years. A bear market is when securities are either stagnant or prices are falling. As prices continue to fall, the investing world has a sense of pessimism and lack of confidence in the market. Traders are jittery, doubtful and not willing to back a stock or security at all.
Meeting the bear
As you might be able to see, Bitcoin is down 80% from where it was last year. This is a tremendous fall that has lasted a full 12 months. This is a clear bear market as people have begun to have serious doubts over the future prospects of the cryptocurrency. If you are looking to invest your money into a stock, you should consider that stock’s possible bear market qualities. If you’re searching for a stock that will yield a quick buck, then you will almost certainly have to contend with the bear sooner or later. Furthermore, when investing into a company that is in a championing industry such as technology or commerce, study what the working trends are present. A stock that is continuing to rise weekly or by month in a slow steady pace is something that will eventually attract more traders as it seems stable in growth. The bull will appear at this point.
Seen in motion
Studying the bull and bear movements can be done quite easily. Consider checking out the best stochastic settings for 5 min chart using certain software. Here you can see the movement of a stock, currency, commodity and more every 5 minutes. By the end of the week or month, you’ll have a line that snakes up and down, showing you when a bull took over the market and when the bear came back into the driver seat. Paying attention financial news can help determine a possible reason for both. Did a company’s financial quarter performance dip, or did a powerful investor buy large shares in another company?
It is possible to make money on the side from home investing in stocks. Over time, you will learn the ins and outs of the investing world. You will know the signs of when to buy and when to pull out. Like everything else, it takes time and dedication. Go get ’em!
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