Facts about Stock Market History and Current Market Correction
Selling Stocks is as easy as buying a stock. However what really is most important, is knowing WHEN to sell your stocks. Should you sell stocks you own now? That is a question many people are asking.
Right now many gurus are saying to sell your stocks. They are telling you that the Stock Market is going to crash worse than 2008, and some gurus are saying that the stock market is going to lose 80% of its value.
Is this true?
When you hear this, these are questions you should be asking yourself:
1. Why are these gurus telling you the market will crash?
It is not out of the goodness of their hearts, or that they
want to do you a favor. They are scam artists intending to make
money.
2. What do these gurus have to gain by telling you the
market is about to crash?
Perhaps these gurus are already Selling Short stocks, and
are hoping you will panic and sell so they can buy stocks at bargain prices.
3. How could anyone possibly know how far the stock market
would fall in any particular year, or at any particular time? Are they time
travelers from the future?
The fact is that in over 100 years the stock market has lost
over 80% only once. That occurred back in the 1929-1932 Bear Market. I repeat,
there has only been an 80% loss in the Dow, once in over 100 years.
Here is some history regarding Stock Market loss
percentages:
During the 2008-2009 Bear Market, from the previous high the
Dow 30 lost about 50%. During the 2000-2002 Bear Market it lost about 30%.
During the Bear Market of 1987 it lost about 40%. The average amount of
loss for a Bear Market during all of the Bear Markets of the past 100 years is
around 40%. A loss of 50% happened once. This means these current guru
predictions need to be scrutinized, and viewed with extreme skepticism. Historical
data does not substantiate these claims.
Here are facts regarding the current Market Correction:
The Stock Market has been in an Intermediate Term Correction
since August of 2015. Corrections of this size are fairly common for the Stock
Market especially after speculative gains, which happened in 2014 as more new
Investors started buying stocks. It is normal and necessary to have corrections
of 10-30% after speculation of this nature, and Intermediate Term Corrections
have occurred many times during the past 100 years of Stock Market data.
How far the Stock Market will fall now depends upon these
factors:
1.
Fundamental values of the
corporations who are traded in the Stock Market.
2.
The Technical support levels and
Technical candlestick patterns, which coincide with the Fundamental values.
3.
Redemption demands from Mutual Fund
Investors.
Are you surprised?
You should be because what most people do not know is Mutual
Fund Investors control how far stocks will fall, NOT some guru who is making a
fortune on terrifying the Independent Investor or Trader.
Should you learn how to sell stocks?
Well, actually it is easy to sell stocks. You can learn how
to sell a stock in less than 5 minutes. All you need is an online brokerage
account or to call your local broker. Selling stocks is simple. The real
question is, “Should you be selling your stocks now?” HOW to sell a stock is
not the question to ask.
The question you need answered is:
1.
How do you protect your capital
investment and current investment profits during Market Corrections or Bear
Markets. Selling at an extreme low is not how to protect them.
2.
How do you know when to sell and
when to buy a stock? Well, listening to gurus who sell scams is definitely not
the right way.
3.
Just because someone says something
on the internet, news, or TV does not mean it is true. Learn the facts and
actually learn about the Stock Market. It is not a game and it is not gambling
unless you listen to the gurus.
The Stock Market is the Business of Businesses. Many
ordinary people have secured their financial future by understanding this fact.
Get started in the right direction. I invite you to watch a
series of short Webinars about the basics of the Stock Market for New Investors
& Beginner Traders on my website TechniTrader HERE. Sign Up for full access.
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Trade Wisely,
Martha Stokes CMT
Chartered Market Technician
Instructor and Developer of TechniTrader® Stock and Option Courses
TechniTrader DVDs with every course.
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