P

P

LORD JESUS CHRIST SAYS

The thief comes only to steal and kill and destroy; I have come that they may have life, and have it to the full. “I am the good shepherd. The good shepherd lays down his life for the sheep.

29 Jul 2015

FREQUENTLY ASKED QUESTIONS (4)

Hi Friends, 


1.        Supply and Demand:-  Supply and Demand can be simply stated as the relationship between what is available (the supply) and what people want and are willing to pay for (the demand).  This equation is the main engine of economic activity and is extremely important for your stock investing analysis and decision-making process. 


2.       Economic Effects from Govt. Actions:-  Nothing has a greater effect – good or  bad – on investing and economics than Govt., which controls the money supply, credit and all public securities markets.  Govt. actions usually manifest themselves as taxes, laws or regulations.  They also can take on a more ominous appearance, such as war or the threat of war.  A single Govt. action can have a far reaching effect that can have a direct or indirect economic  impact on your stock investments.


3.       Bear Market:-  This is trading task for the stock market being in a down trend, or a period of falling stock prices.  This is opposite of Bull market.


4.       Blue Chip Stocks:-  These are the large , industry leading companies.  They offer a stable record of significant dividend payments and have  a reputation of sound fiscal management.


5.       Bull Market:- This is when the stock market as a whole is in a prolonged period of increasing stock prices.  Opposite of Bear Market.


6.       Day Trading:-  The practice of buying and selling with in the same trading day, before the close of the  market on that day is day trading.


7.       Moving Average:-  A stock’s average price per share during a specific period of time.  Some time frames as 50 and 200 day moving averages.


8.       Rally:-  A rapid increase in the general price level of the market or of the price of the stock , known Rally.


9.       Volatility:-  This refers to the price movements of a stock or the stock market as a whole.  High volatile stocks are one  with  extreme daily up and down  movements and wide intraday trading ranges.  This is often common with stocks that are thinly traded, or have low trading volumes.  This is also common with the stock that Time Trades.



10.   Volume:-  The number of shares of stock traded during a particular time period, normally measured in average  daily trading volume.


Good Luck                                                                                 see you later.