The stock market is a very erratic and tough-to-understand entity. At its core, it’s supposed to replicate a market with true buyers and sellers, but unfortunately it’s anything but. Nowadays, 70% of market volume is driven by computers designed with algorithms that buy and sell securities millions of times in split second intervals in an attempt to shave incremental profits when added together equate to billions. Huh? Yeah, it’s pretty ridiculous.
Unfortunately, the stock market today is a casino where most of the gambling is done by the house and the retail investor is basically a joke. Yes, the game is somewhat rigged and unless you’re an insider, it’s rigged against you.
The only way to beat the market or at least do well and earn a nice return on your money is to think long-term. Also, focus on dividend stocks. By purchasing stocks of sound companies that have very long track records of returning shareholder value, you can do well. Consider accumulating cash and shares fo your favorite companies on a consistent basis. If and when the market crashes, allocate your cash into more shares (thus taking advantage of lower prices). Rinse and repeat.
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