The value of Knowing the General Stock Market Structure

Knowing the general Stock Market direction is essential to investors and providers everywhere. The bottom line is this: Most Stocks (80%+) check out the general direction of the worthiness Stock Market. In a bull market cycle, most Stocks will keep their own or surge. In a correction known as bear market cycle, ALMOST ALL Stocks will fall. And Stocks select to fall much faster compared to the they rise!

It does not matter how good a Stock's earnings and fundamentals are to how well the Stock has been accumulated over the past several months. Make in your home mistake, when the an industry turns bearish, the correction absolutely brutal. It can do a lot of damage to an otherwise good portfolio.

A great along the lines of would be Apple (AAPL: Nasdaq). Consumed by the human brutal bear market such as '08-'09, AAPL fell close to 60% in value, inspite of fundamentals never changed. I am sure you can imagine a few Stocks that did common!

In bull markets every one cream rises to outstanding AND KEEPS RISING! In bear markets EVERYTHING physically comes down.

Now with the full time Stock Market dealer, I make no differences between the two "long-term" bull and bear cycles or how much the talking heads on TV prefer to call "Secular Bull" or just "Secular Bear" markets. Stocks can be in uptrends or downtrends, OF YOUR.

In his bestselling book "How to generate money in Stocks", William O'Neil teaches investors exactly how to look for the Stock Market's direction and text decisions based on that direction. Additionally, O'Neil does all the analysis satisfy your desires in the Investor's Business Daily (IBD) newspaper present (also appears on IBD normally entitled "The Big Picture" which appears day time on the first world-wide-web page. He essentially tells an individual!

In summary, if you intend to improve your investment a choice between trading results, know of your Stock Market's general direction. As well as buying Stocks in a market correction one has a much higher probability of losing money and vice versa. The single best place to find the general market direction as the IBD article "The Big picture. "

.