Bull http://www.bizcovering.com/tags/Bull New posts about Bull Five Ways to Lose a Fortune in the Stock Market http://www.bizcovering.com/Investing/Five-Ways-to-Lose-a-Fortune-in-the-Stock-Market.102913

  • Give or Accept Tips

    Giving or accepting tips is a certain way to lose money in the stock market. It means that you lack the strength of conviction in your investment decisions. This is a recipe for disaster. Instead, do your homework, make your decision and keep quiet about it.

  • Sell when everyone is Fearful

    By selling when everyone is fearful and the news is bad and getting worse you are guaranteed to sell low and to lose money. Instead look past the current doom and gloom to sunnier days ahead.

  • Buy only during Booms

    Buying when the news is good and the economy is booming will result in you being guaranteed to buy high. Instead ask yourself if perhaps it might be a better time to sell. Is all of the optimism in the market justified? Are expectations that are built into stock prices overly optimistic?

  • Join the Crowd

    Some people will buy a stock just because everyone else is doing it. Doing this may mean that you are among the last ones on board as it gets ready for a terrifying dive off of the cliff. Instead, think independently. Is this stock really worth what you are going to pay for it? Do your homework and think independently.

  • Go against the Trend

    If a stock is trending down, you can lose a lot of your capital by betting that this trend will reverse itself. Instead, look for a stock that is trending upwards in price with a steady history of rising revenues, profits and dividends.
    • ]]>     Tue, 01 Apr 2008 10:06:09 PST     The Magazine Cover Guide to the End of Stock Market Trends http://www.bizcovering.com/Investing/The-Magazine-Cover-Guide-to-the-End-of-Stock-Market-Trends.101682 The Magazine Cover Indicator

    One of the most powerful technical stock market indicators is the magazine cover. What does a bull or a bear on the cover of a popular magazine tell you about future trends in the stock market? It usually means that the trend is very mature and that most people have accepted this trend as a fact.

    Many people think that the public is always wrong when it comes to the stock market. This is not true! The public is right for most of the trend but wrong at the end! They are wrong when the trend has reached the point where it is common knowledge and everyone is on the band-wagon. This is the point where the bull or bear will be featured on the magazine cover.

    What to do when you see a Bull on the Cover of a Popular Magazine

    This is the time of maximum risk in the stock market. The bull trend has matured and is at risk of topping out and developing into a bear trend. Start to take profits and build your cash positions. A defensive position is required to preserve capital through the coming bear phase.

    What to do when you see a Bear on the Cover of a Popular Magazine

    This is the point of maximum profit potential in the stock market. The bear trend has matured and will start to form a bottom. A new bull trend is just around the corner. Start to position your portfolio to take advantage of this new bull market by building positions in quality stocks.

    ]]>     Sun, 30 Mar 2008 04:57:30 PST     How to Use Moving Averages to Identify a Change in the Long-term Trend http://www.bizcovering.com/Investing/How-to-Use-Moving-Averages-to-Identify-a-Change-in-the-Long-term-Trend.97888 You often hear of people talk about bear markets and bull markets. But how do you know when a bull market ends and a bear market begins? You can identify a change in the long-term trend by using moving averages.

    What is a Moving Average?

    A moving average is simply the sum of the most recent closing values of a stock or stock market index divided by the number of days in the moving average. A 20-day moving average would be the average closing stock price over the past 20 trading days while a 200-day moving average would be the average closing stock price over the past 200 days.

    Changes in Long-term Trend

    Moving averages can be used to identify a change in the long-term trend of stock market prices.

    In a bull market, the intermediate-term 50-day moving average would be above the long-term 200-day moving average. When there is a change in trend from a bull market to a bear market, the 50-day moving average would cross the 200-day moving average and would then be below it.

    In a bear market, the intermediate-term 50 moving average would be below the long-term 200-day moving average. When there is a change in trend from a bear market to a bull market, the 50-day moving average would cross the 200-day moving average and would then be above it.

    ]]>     Mon, 24 Mar 2008 04:21:56 PST     How to Use Moving Averages to Identify Trends in the Stock Market http://www.bizcovering.com/Investing/How-to-Use-Moving-Averages-to-Identify-Trends-in-the-Stock-Market.97885 Many people talk about whether the stock market is in a bear market or a bull market. But what is an effective way to identify the trend? In this article we discuss moving averages as an effective means to identify trends in the stock market.

    Moving Averages

    A moving average is simply the sum of a stock or stock market index’s price for a given number of days divided by the number of days in the moving average. For example, a 20 day moving average is the sum of a stock or stock market index’s price for the past 20 trading sessions divided by 20. To update the moving average, you would add in the current trading day’s closing price and remove the oldest trading day’s value from the calculation.

    The Short-term Trend

    To identify the short-term trend, calculate a 20-day moving average and then determine if today’s price is above or below this moving average. If the answer is above, you are in a short-term bull market. If the answer is below, you are in a short-term bear market.

    The Intermediate-term Trend

    To identify the intermediate-term trend, calculate a 50-day moving average and then determine if today’s price is above or below this moving average. If the answer is above, you are in a short-term bull market. If the answer is below, you are in a short-term bear market.

    The Long-term Trend

    To identify the long-term trend, calculate a 200-day moving average and then determine if today’s price is above or below this moving average. If the answer is above, you are in a short-term bull market. If the answer is below, you are in a short-term bear market.

    ]]>     Mon, 24 Mar 2008 04:18:19 PST     The Trend is Your Friend http://www.bizcovering.com/Investing/The-Trend-is-Your-Friend.96702 Identifying the Trend

    The key to identifying the trend of a stock or stock market index is to examine a graph of its price action. A bull trend is identified by a series of peaks and troughs in price action whereby each set of peaks and troughs is higher than preceding peaks and troughs. Using a ruler you can make a line that touches each peak and another line that touches each trough. A bull trend should have an upward sloping trend line.

    A bear trend is identified by a series of peaks and troughs in price action whereby each set of peaks and troughs is lower than preceding peaks and troughs. A line through these peaks and troughs will show a downward sloping trend line.

    Most Likely Price Action is for the Trend to Continue

    The key to the “the trend is your friend” catch phrase is that the most likely price action is for the trend to continue. That means that by trying to be the hero and call a bottom in a downward trending market you are likely to see the trend continue, and for you to lose money. Don’t call bottoms! Ensure that your trades are onside with the trend and rake in profits as the trend continues.

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