Foliohouse

Checking New Old Stock Resistors

How does a stock market crash?

Have you ever wondered "how a spot market stock" or "Is it possible to enjoy a stock market crash?

Did you know that it is easier to make money during a market crash is that in a market raging bull – Why? Because the hardware investment is driven by two emotions

Fear & Greed

If you look at history stock market graphs and alumni, you will notice that the stock index falls much faster than its rise. There is an old saying that "the bulls need to walk up the stairs, but the Bears jump out the window. "Again, look at the question of how a stock market crash.

The main reason behind a market crash is fear. Whether it was the stock market crash of 1929, the Great Depression or the current credit crisis we are experiencing, whether the United States, Australia and Iceland, the main reason of the accident is fear.

When you invest in shares or obtain stock market advice often forget to think about all the other investors that do exactly the same thing. Plus the majority of the money invested in the market does not come from mum and dad investors, but large companies and fund managers.

When you buy shares you buy them at a time when other investors have done two things

1.They have already bought shares and sit on a profit or a loss.
2.They have already sold the shares at a profit and loss and are looking at the right time to buy again.

Given this, Suppose you buy $ 20 share. 6 months ago, the share was trading at $ 14 and it has slowly climbed to $ 20 and you hope it will continue to increase. You know the owner of the action as all the investors who had already purchased but there is a big difference – Investors other theses are all sitting on the result. So they are looking at share prices like a hawk, because the last thing they want is a stock market crash to come along and erase their profit. To make things even worse, the investors are not only thinking about profits, but they have already passed the benefit in their heads. Thus, when the stock price starts to turn around you that "it's ok, I'm sure it will come good "- so they think" oh no I do not want to lose my profit (new car) I'd better sell. This fear of losing benefit begins to grow and people increasingly begin to jump off the bandwagon – Outside of you who bought at the top, you always say: "I think it will be U-turn ".

So how does a market crash? Of course, there are many contributing factors but the fear is certainly the largest. Unfortunately for most investors, they end up losing money because they usually buy when the market is high and sell when the market is low.

So how can you not fall into this trap? Just the knowledge, education and experience. Nobody will be able to time the market perfectly (to buy low and sell at the peak), not even Warren Buffet does. But if you can buy over the bottom 30% of the market and sell during the first 30% will go along way to becoming a successful investor.

That make money when the market is in free fall? I already said that you can actually make money during this period and it is true. Why? Because fear is much easier to predict than greed so the market is moving quickly. So if you know some simple strategies that you will actually be able to make huge profits in a quarter of the time.

So maybe the question you should ask yourself is not how the stock market crash, but how I enjoy a market crash?

About the Author

Would you like to learn how to not only survive the 2009 Stock Market Crash but actually profit from it? Receive your FREE DVD Today

How do I know if the old stock certificates have any value?

I bought a field which had in it a number securities issued in the early 1900s for various mining and oil company stocks. I wonder if they retain still worthless. Thank you

Talk to a lawyer or write for business. Just be careful not swindled.