Free Stock Market Investing Tips

The old stock market saying “buy low and sell high” is the opposite of what most individual investors do. While investors obviously want to see increasing returns, most inadvertently end up “buying high and selling low” instead. This is largely the result of human psychology and our tendency of wanting to chase yesterday’s hot returns.
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Going short, betting that a stock will go down, is something that only experienced investors should do. When you short a stock, you sell shares of the stock without actually owning them (your brokerage borrows the shares for you which enables you to sell them later). You later must purchase back the shares, which is known as covering. When you short a stock, you hope to sell high and then later buy back low.
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“A recession is possible!” Ben Benrnanke, Federal Reserve Chairman, said this in the first week of April 2008. Now, how does that affect the US Stock Market? The markets are definitely going to plunge southwards. Will this recession will be a shallow one? With the current issues, it looks like a deeper than usual fall in the near future. But, we don’t want to speculate how long the recession will last this time. We want to be on our toes to look for a rebound.
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After checking the futures over the weekend, I knew the market was going to drop a lot at the open. Like most people, I was happily surprised that the Fed decided to cut interest rates by .75%, which likely averted a market catastrophe.
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