Tuesday, 22 March 2011

Is it a good time to invest?

Yes!

It might seem like a bad time to invest, with the conflict in Libya, the Japanese crisis, worries about nuclear power, and general uncertainty in the markets.

Uncertainty in the markets can increase chances for profit. For a spread better like myself, I can take advantage of the fluctuations in the market and make quick bets for a tidy profit!

Due to uncertainty, the prices of many stocks and other financial profits are more likely to be further away from their long term price. Thus the difference between the real value of a firm and the markets perception is likely to be higher. According to the efficient markets theory, the price will eventually reflect the products real value, and, if you have invested, give you a tidy profit (or loss) of the difference.

19 comments:

  1. Awesome, finally another blogger into trading. I specialize in the Forex market but am an all around trader. Definitely looking forward to your next post!

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  2. How hard is it to start trading?

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  3. @Tyler I wouldn't say that it is hard, but it does take a lot of time and thought, and of course you need the capital to back it up!

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  4. you have to be cautious nowadays...never know what could happen next

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  5. I never looked at it that way before... All I've heard in the news lately is the prices of stocks dropping because of everything thats going on in the world.

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  6. I've been meaning to invest in the stock market for quite a while now. I will be following your blog!

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  7. might start investing too man! thanks for the sharing

    following!! :)

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  8. I find your blog very interesting. Following :)

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  9. I've been thinking of signing up for an etrade account for quite some time. Looks like the perfect time to do so :)

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  10. I've been thinking about investing, cool post.

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  11. How much capital do you need to start trading?

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  12. Good question Merkin. It depends really, I'll explain in a new blog post! It'll be up in an hour or so, I'll message you.

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  13. Hmm I don't really know anything about trading... following for more info!

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  14. Great time to invest in Australian resources. We're exporting huge amount to repair not only Japan but also NZ.

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  15. Great tips! I'll definitely follow some of your advice!

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