Monday, May 10, 2010

Now what? Europe is all better?

The stock market is starting to make huge leaps and bounds.

Europe is all fixed. They are going to bail out Greece after all.

Wait a minute!

Wasn't that already in motion last week, already? Why is this news sending the stock market so high this morning? What kept this same fact from tanking last week, when our fears in the European Market were sky high and made so many people panic about our US Market?

We can never get enough news it seems. The news seems to drive so many of our actions.

This is great news for the savvy investor, though.

I try to make this point on here, and I try to make it often. I've told countless people this same thing, but very few really understand it.

There is BIG money to be made by understanding that most people (especially those with money in the stock market) tend to hear news and overreact to it. If you understand this, you can find some great buying opportunities here.

If you're an experienced trader (opposed to an investor), you can make a quick profit by selling at an artificial high price point, and you can repurchase those same shares later when the prices dips to more of a realistic--and less emotionally based--level.

I'm glad that the stock market is going upward, but I'm guessing that either later today or tomorrow, we will see the market give back some of that quick jump this morning.

Suggestion: Know this is happening, and try to take advantage of it.

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