Many people have very negative views of money-making opportunities due to the current depressed mood about the economy.
In today’s unstable economic climate, severe downturn in the economy, and senior economists’ predictions of a severe downturn, is it still possible to make money on the stock market?
and the foreign exchange market?
Is buying stocks and shares today, when there is so much financial uncertainty, just a speculative gamble?
These are questions that concern many investors.
One regularly sees attractive, enticing and seriously tempting advertisements in the financial section of newspapers and on the Internet, promising exceptional profits by investing in stocks or shares, or in the foreign exchange market.
Most of these ads focus on financial advisory services that make use of computer programs – or what are known as “robots” – capable of identifying investment opportunities.
Some websites claim that these computer programs will allow you to make exceptional profits in a short period of time. In many cases, there are promises to even double your money.
To validate the claims, examples are given of stocks that have doubled and even tripled in value.
Many of these referenced examples, where stocks have skyrocketed in value, are what are commonly known as “penny stocks.” These are very low-priced stocks with a history of high volatility. They are very high risk stock shares with an erratic earnings history that often sell for less than $5.00 or $10.
If one examines the history of certain “penny stocks” over a period, one will find that many “penny stocks” have in fact doubled and tripled. Certainly, some lucky investors have made large sums of money by investing judiciously and shrewdly in certain very low-priced stocks.
The secret to investing in the stock market has always been timing and the ability to predict which stocks are likely to rise.
With low value “penny stocks”, due to their extremely low selling price, the increases in value could be quite spectacular.
Predicting what “penny stock” is not a matter of guesswork, a “gut feeling” or a hunch. It involves a scientific and mathematical analysis of a wide range of factors and facts.
This analysis involves an examination of factors such as a detailed study of the company itself, what it produces and markets, the management structure, past sales figures and the future potential of the product or service it offers.
Much more important, however, is the analysis of a variety of factors, such as recurring trends in price movements. This is a more complicated field and is the essence of what is known as Chartist theory.
Factors like these can be better analyzed with sophisticated computers.
Examining the chart pattern of a particular stock, for example, reveals important factors such as recurring volumes, drops in price, then rebounds, and then further declines to the same low price. This is an important indicator that the stock is supported at this low price.
Few investors have the experience to be fully conversant with the intricacies of chart analysis.
To answer the question: “Is it still possible to make money on the stock market even in today’s difficult economic conditions?” Yes, it definitely is. It can be done by investing wisely in the stock market, where some companies, particularly startups with innovation, foresight, and vision, can identify gaps in the market.
You can certainly also make money on the foreign exchange market, where currencies are particularly volatile at the moment.
Forex trading, which involves assessing which currency is likely to go up or down and is dependent on a wide variety of factors, requires a similar graphical approach to success.
To achieve success and earn money it is very helpful to make use of the services of trained specialists, who have access to powerful and sophisticated computers and excellent software programs, capable of analyzing a huge range of factors in seconds.
There is definitely money to be made in the Stock Market and also in the Forex currency market, even in the current economic conditions. There are a number of excellent stock advisory services that can help you make the right investment decisions.