Monthly Archives: September 2017

About Financial Markets and Investing

Across the globe in many nations, you will find financial markets. Some of them may be very large and others may be small with a few participants. A financial market is a place that allows buyers and sellers to trade assets such as stocks, currencies, commodities, or any derivatives that are defined by basic regulations on trading, transparent pricing, costs and fees, and market forces that determine the price of securities that trade. One of the largest and well known markets where investors are trading stocks is the New York stock exchange.

Financial markets are used for various things, from bank loans and mortgages, to shares and stocks. They bring parties together so that they can do business. In the case of stocks, a company who needs to raise capital to expand its business may decide to sell shares to investors. The capital it gets from the sale of its shares can then go towards its expansion. In return, the investor hopes to see an increase in the companies income from the expansion, which should be reflected in the share price, assuming all other aspects of the company are in good order.

When you are stock picking with a view to invest, and have completed a technical analysis of the stock picks, you will look for sellers on the financial markets and purchase the shares at a price that is suitable for you. This is all part of a financial market. Without it, you would find it very hard to find sellers or buyers if you were the one selling. The financial markets makes it easy for participants to come together to trade in one place. When you invest in the stock market today, you need to research the stock market to find out how the mood is from other investors.

The Current State of the Financial Markets

This past week has brought back the feeling of a falling knife. Not a good feeling, especially if you are over invested. The good news is that the markets are probably going to find a bottom soon. The bad news is that no one knows at what price. That is the $1MM question. And by far and away, that is the question that I am hearing most often from friends, family, and readers. So, where will the market find support?

Before we get to the charts and some levels to keep an eye on, let me provide you with 5 pieces of information that carry importance in understanding the summer lead up to the current state of the financial markets:

1) The European sovereign debt situation worsened and became contagious over the summer months. The PIIGS (Portugal, Italy, Ireland, Greece, and Spain) have always been a concern, but it wasn’t until July/August that the markets really hammered the debt of these nations (see: credit default swaps). This, in turn, hit the European equity markets… hard. The anxiety across Europe has grown to a light boil and social mood is only getting worse. Youth unemployment is unacceptably high in many European countries and will have dire consequences down the road if its not dealt with soon. Consumer confidence in Europe (and America) is low and the mood dreary and anxious, to say the least

Classic Methods of Forecasting Financial Markets

There are many methods of forecasting financial markets. The most popular are technical analysis and fundamental analysis. Some traders think that technical analysis is more important than fundamental analysis. Let’s look at this!

Technical analysis is the method of forecasting financial markets which based on past price and volume. There are many trading rules and models based on volume and past price. These are such models as head and shoulders, flags, symmetrical triangles, ascending triangles, descending triangles and others. Traders attributed to the technical analysis indicators and oscillators. Indicators and oscillators are mathematical calculation based on a past price or/and volume.

The difference between indicators and oscillators is that oscillators are bound within a range and indicators are not bound within a range. The most popular indicators are moving average, Bollinger bands, alligator, Ichimoku Kinko Hyo and others. The most popular oscillators are relative strength index (RSI), commodity channel index (CCI), moving average convergence-divergence (MACD), Stochastic and others. If you use this method you can determine entry point in market, level of stop loss and take profit.

Learning More About The Behavior Of Financial Markets

What are financial markets, anyway? The term is confusing because it is used in many different ways. Some people refer to the financial markets simply as markets, others as capital markets, and yet others call it the stock market, despite the fact that this is only one of them.

Essentially, it is a market where mutual interests are fulfilled when investors make a profit and businesses get growth capital. Although, there are numerous financial markets, the most common ones are the stock market, the mutual funds market, the bond market, and the commodity market. The level of calm or volatility in these markets affects the entire economy of the United States.

In talking about what are financial markets, what most people think of is the stock market. Stocks are shares in a corporation that has gone public. A company will sell stocks to the general public in order to raise funds for its own growth. In return, when the company makes a profit, so, too, does the investor. The stock market is what keeps the US economy growing.