Wednesday, February 15, 2012

Ya Gotta Love the Stock Market

Here's the reason why the 1% loves the stock market.

A 1 penny increase in the stock price of 100 Shares = 1.00 Dollar profit.

                                                           1000 Shares = 10.00 Dollar profit.

                                                        10,000 Shares = 100.00 Dollar profit.

                                                      100,000  Shares = 1000.00 Dollar profit

On a good volatile day, stocks can move back and forth a dollar or more a dozen or more times. On a 100,000 share trade, that one dollar swing would be 100,000 Dollars. Not too bad for a days work. With this kind of wealth generation power, the 1% use the stock market to stay right where they are on the economic ladder. As the 99% we should  do whatever it takes to emulate this habit, pattern, even lifestyle. We should eat, breathe, and sleep the stock market.

The stock market will always go up and down. When the market goes down, stocks are cheaper, it means stocks go on sale, it's time to go shopping. When the market goes up its time to sell some. Don't unload all your stocks all at once, keep some in reserve just in case the market goes higher the next day. With that said, be careful, it's a profitable but tricky endeavor.

One more piece of advice. Don't fight the market. You can't totally predict its direction all the time.

                                         The market will always know more than you.

                                         Don't get greedy, don't try to extract the very last penny of profit. 
                                         If you try, it will turn on you while you wait for it to continue to go up.
                                         Take your profit, and be grateful for what the market gives you.
                                         This piece of advice doesn't contradict what I was talking about earlier.
                                         If your gut instincts tell you to sell it all, then by all means take it all off the table.

One of the greatest things about the stock market is that you can buy and sell the same stock back and forth thousands and thousands of times, and each time you sell the stock higher you get a little bit more money to buy even more stock with.

Here's the thing:  Everyone is invited to this party, no one will be turned away.

                          All you really have to do is have the courage to buy low and sell high.

                          It's as simple as that, then soon we won't have the 1% or the 99%.
                          We will have the 100%

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