Hello everyone
All financial stock traders can cite the quotation of Edwin Lefevre about the bull market. The investor should see the difference and notice the current trend because it determines the way you behave under the circumstances. The changes happen within an instant and affect the prices immediately.
Stocks rise in value and all are happy. The companies flourish, invite more employees and produce more products. All positive news about the company at this time brings higher profit because shares increase in value.
The returns on penny stocks can be huge during bull markets. All look for companies to invest in and find the company described above. Its stock gradually becomes overvalued.
Leverage is important at any time. Stocks become more expensive during bull markets, banks offer loans without problems and there are more clients who wish to take out loans. There is a possibility to invest the funds you have borrowed.
People have more opportunities to win and make diversified portfolio. They buy more penny stocks because it takes less time to make profit when you trade penny stocks. People risk more at this period. The buyers are encouraged to spend funds to raise prices.
But it is all different when you observe the trends on a bear market. All are afraid of losses as the stocks can be devalued within an instant. It is possible that they’ve lost their investments already.
It is really a challenging thing to be engaged in the penny stock deals at this time. Penny stocks are affordable and the drop is not going to be considerable. They have already decreased in value. With drop of stock markets, value buyers are going to buy additional penny stocks. It is better not to rely on a bigger cap stocks at this time.
The leverage and margin are good in a bull market. However, they can bring to disaster in a bear market. Imagine the situation when a stock decreased in price and lost its value. The penalty increases twice. First, the stock price became lower and, second, you get bigger margin calls. It can be necessary to get rid of stock in the situation when others do the same. As a result, the price is getting lower.
As soon as the bear trend noticed by the banks, they immediately increase margins because of higher risk. Banks know by experience that investors will have problems with paying out the debt. Many will try to leave the market in decline. All financial organizations try to balance their budgets not to have debts.
The cash is less available and only the most talented investors can earn profits under the conditions.
Good luck!
All financial stock traders can cite the quotation of Edwin Lefevre about the bull market. The investor should see the difference and notice the current trend because it determines the way you behave under the circumstances. The changes happen within an instant and affect the prices immediately.
Stocks rise in value and all are happy. The companies flourish, invite more employees and produce more products. All positive news about the company at this time brings higher profit because shares increase in value.
The returns on penny stocks can be huge during bull markets. All look for companies to invest in and find the company described above. Its stock gradually becomes overvalued.
Leverage is important at any time. Stocks become more expensive during bull markets, banks offer loans without problems and there are more clients who wish to take out loans. There is a possibility to invest the funds you have borrowed.
People have more opportunities to win and make diversified portfolio. They buy more penny stocks because it takes less time to make profit when you trade penny stocks. People risk more at this period. The buyers are encouraged to spend funds to raise prices.
But it is all different when you observe the trends on a bear market. All are afraid of losses as the stocks can be devalued within an instant. It is possible that they’ve lost their investments already.
It is really a challenging thing to be engaged in the penny stock deals at this time. Penny stocks are affordable and the drop is not going to be considerable. They have already decreased in value. With drop of stock markets, value buyers are going to buy additional penny stocks. It is better not to rely on a bigger cap stocks at this time.
The leverage and margin are good in a bull market. However, they can bring to disaster in a bear market. Imagine the situation when a stock decreased in price and lost its value. The penalty increases twice. First, the stock price became lower and, second, you get bigger margin calls. It can be necessary to get rid of stock in the situation when others do the same. As a result, the price is getting lower.
As soon as the bear trend noticed by the banks, they immediately increase margins because of higher risk. Banks know by experience that investors will have problems with paying out the debt. Many will try to leave the market in decline. All financial organizations try to balance their budgets not to have debts.
The cash is less available and only the most talented investors can earn profits under the conditions.
Good luck!
