Success Trading: More Basic Terminology for New Traders

One important aspect of trading the markets is to understand how to feel it's overall pulse. In the stock market, this is measured by measuring the movements of selected stocks across various sectors to let us know how the market is doing in general. A gentleman by the name of Dow came up with this concept and today we still use his Dow Index for the purpose of measuring the market's pulse. There are also several others out there, but another popular index of mostly technical stocks is the NASDAQ.

Bull Market - This describes a market where the overall market is rising. Typically, this is measured by the NASDAQ and the Dow Indexes. Experts recommend that you only buy during Bull Markets because the odds are much more in your favor - this is true, but keep in mind there are plenty of stocks that plummet during Bull Markets too.

Bear Market - This describes a market where the overall market is dropping. As with Bull Markets, again we measured this by the NASDAQ and the Dow Indexes. Experts recommend that you only sell short during Bear Markets because the odds are much more in your favor - this is true, but keep in mind there are plenty of stocks that rise during Bear Markets too.

The important thing about using indexes to help your trading was mentioned earlier. During Bull Markets, you can expect 65% or more of all stocks to be rising - so if you look to buy during Bull Markets, the odds are very much in your favor. Of course, the opposite is true with the Bear Markets. Another characteristic of these two markets is that Bull Markets generally last 2-3 years, while Bear Markets last only 1-1 ╜ years. So it's a very good idea for new traders to get in the habit following the indexes early in their learning. This will give you a tremendous advantage.

Chuck Cox is a Technical Writer and Industrial Scientist by professional with a background in statistics. He has used mathematical and statistical methods to invest and trade in the stock, futures, and options markets. Chuck has owned various businesses and presently operates several websites. To investigate a new business idea, visit his website, http://www.earncashathometoday.com/trading-stocks.htm

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Energy Investing in a Carbon-Conscious America - Morningstar.com

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://news.google.com/news/url?sa=Tct=us/0i-0fd=Rurl=http://www.latimes.com/news/printedition/front/la-na-waxman21-2008nov21,0,2676793.storycid=1267309364ei=v9EnSaP8IY3I9AS-5q0Qusg=AFQjCNGO6xrPN5XTx3xMoohTfCQdFLdcXgimg src=http://news.google.com/news?imgefp=DpFk52K_RyUJimgurl=www.latimes.com/media/photo/2008-11/43505039.jpg width=80 height=51 alt= border=1brfont size=-2Los Angeles Times/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/0-0fd=Rurl=http://news.morningstar.com/article/article.asp%3Fid%3D265991cid=1267309364ei=v9EnSaP8IY3I9AS-5q0Qusg=AFQjCNETLLhJ-TVCESjlTLEnXaL9xbgy8QEnergy bInvesting/b in a Carbon-Conscious America/abrfont size=-1font color=#6f6f6fMorningstar.com,nbsp;ILnbsp;-/font nobr11 hours ago/nobr/fontbrfont size=-1Given that the 110th Congress produced six carbon cap-and-trade bills and that President-elect Barack Obama has so far stood by his campaign rhetoric b.../b/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/0-1fd=Rurl=http://www.msnbc.msn.com/id/27846093/cid=1267309364ei=v9EnSaP8IY3I9AS-5q0Qusg=AFQjCNEbJx72c_6FYDQgNvVKR6t9THBCMQclimate crusaders set to act in Congress/a font size=-1 color=#6f6f6fnobrMSNBC/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/0-2fd=Rurl=http://www.investors.com/editorial/editorialcontent.asp%3Fsecid%3D1501%26status%3Darticle%26id%3D312077804618599cid=1267309364ei=v9EnSaP8IY3I9AS-5q0Qusg=AFQjCNH-NAFknNwvSnwfWSciW-ITrOs5UgThe Waxman Wane/a font size=-1 color=#6f6f6fnobrInvestor's Business Daily (subscription)/nobr/font/fontbrfont size=-1a href=http://news.google.com/news?btcid=678cb220808f1a4eimg src=/images/news_comment_bubble12.gif alt=google news comment class=comment-iconComment bynbsp;Frank O#39;Donnell/afont size=-1 color=#6f6f6fnbsp;President, Clean Air Watch/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1267309364hl=ennobrall 1,638 news articles/nobr/a/font/div/font/td/tr/table

PepsiCo investing $3 bln in Mexico over next 5 years - MarketWatch

ON INVESTING - Top ten tips for year-end tax strategies... - Valley News Today

US panel urges action on China currency, investing - Forbes

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Saving and investing: Your questions - BBC News

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Watsa teams up with his investing hero - ReportonBusiness.com

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SAP to Bring Unified Interface Across Apps Suite - PC World

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What Is Long-Term Investing, Anyway? - Forbes

Market Vectors Family of Municipal Bond ETFs Announces Distributions - MarketWatch

Evercore CEO invests big in investing - Reuters

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Investing - Google News

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