| Investing in the stock market can be tough, really tough. | | | | economists learn when they start taking classes in |
| This is life and death we're talking about here because | | | | college is about the business cycle of booms and |
| the decisions you make affect your retirement; | | | | busts, peaks and troughs, and how this affects |
| whether you can afford to feed yourself and keep a | | | | everything. What that means is you can be sure the |
| roof over your head during the years when you'll be | | | | stock market's going to fluctuate, it's perfectly normal |
| too old to work. So making the right investment | | | | for it to do so. But that doesn't mean you have to lose |
| decisions is vital to each and every one of us. | | | | money because of it! |
| The problem is, the stock market goes up, and then it | | | | So here are a few indicators to look for that may tell |
| goes down... then it goes back up again, then it goes | | | | you the market has risen too high... |
| back down again. This see-saw ride up and down can | | | | The blue chip stock averages keep hitting new highs |
| be nerve-racking for the best of us! We all like to see | | | | but the secondary stock markets, that is the smaller |
| the market go up and none of us want to be caught | | | | stock markets like the NASDAQ composite and value |
| with our pants down when the market takes a turn for | | | | line, are stalling. This may be an indicator that the |
| the worse. That's exactly what I want to talk about in | | | | market is about to turn. |
| this article today; how to know when the stock market | | | | Next watch the Dow Jones industrial average to see |
| has risen too high and is about to turn downwards. | | | | if it has stopped rising. Many times the overall average |
| Getting out of the stock market is a fine art as well as | | | | stops rising but certain sectors within it keep rising, this |
| a science. Some people call this "timing the market", | | | | may be an indicator that the market is about to turn. |
| but it doesn't have to be as wishy-washy as that. | | | | Finally watch for the number of New York Stock |
| There are certain scientific things you can do, certain | | | | Exchange members that are selling short. Members |
| indicators that you can watch out for that will give you | | | | tend to be experienced professional investors and if |
| a heads up and let you know when it may be time to | | | | they start selling short it may be an indicator that the |
| take your money out of the market while things cool | | | | market is about to turn down. |
| off. | | | | However you determined that the stock market is |
| Don't fall into the trap of falling in love with your stocks. | | | | about to turn for the worse, the most important thing is |
| Just because the stock has risen tremendously over | | | | to be able to pull the trigger and sell your stocks within |
| the last few months or even the last year, doesn't | | | | a moments notice. Many people have trouble doing this |
| mean it can't drop out of the sky at a moments notice. | | | | because they get attached to their stocks as I've |
| You have to be able to pull the trigger and sell your | | | | already mentioned. But as long as you can do this, you |
| stocks as soon as you see that the market is starting | | | | stand a good chance of saving your skin no matter |
| to take a downturn. | | | | what. |
| We live in a cyclical capitalistic society. The first thing | | | | |