Stock Market Growth - Are You Reaping The Benefits?
Stock market growth. Itís easy to identify the concept, simply look at the bottom line of the Dow Jones, S&P 500, or NASDAQ each day and see if their respective scores are higher than the day before. String together days, weeks, months or years and you can get a much broader picture. But for successful traders, stock market growth is much more important than just a number. This is because the number not only symbolizes the bottom line for the market, but in most cases, the bottom line for the investor as well.
After the Dow Jones stock market grew from 10,000 to 11,000 in the spring of 1999, it began a slump that caused it to tumble to 7,300 in the fall of 2002. This slump, fueled by falling corporate profits, affected the prosperity of many companies and threatened the portfolios of many investors. Now, with corporate profits steadily earning large profits, oil prices falling and a stable approach to interest rates by the Federal Reserve, the stock market news is very good and now is a great time for beginning investing in the stock market. Not only has the stock market grown to an all time high, but traders have stock trading plans and stock investing systems to guide them through this stock market growth. With a stable economy and surging corporate profits, some strategists believe that the stock market will continue to grow for some time.
The strength of this growth in the stock market has been corporate earnings. After tumbling to a low in 2002, the earnings of Americaís corporations have been rising ever since. Coupled with somewhat of a lag in the marketís response to this profitability and an environment that is stable in both energy and interest rates, the potential for a continued climb is evident. Needless to say, with such growth in the stock market and with variables in place for continued successful trading, now is a great time to be investing in the stock market!
Whether speaking of an experienced trader or the beginner investing in the stock market, the parameters for making money during this period of stock market growth are the same. An investor needs to approach the market cautiously, using the best tools available. Technical analysis and a stock trading system are those tools! Stock technical analysis provides the investor with the information necessary to make sound judgments about the stability of a company and its stocks. A stock trading plan provides the trader with a consistent approach to investing. Such a plan is valuable, not only in good times, but in bad times as well, protecting the trader from the instability of emotional trading and an uncertain approach to difficulties in the market.
Using the resources available and being alert, a solid investor will be able to capitalize on this period of growth in the stock market. As the bottom line of the stock market continues to rise, it is only right that the bottom line of the investor goes up with it! Be wise, do the analysis and make some money!