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Sunday, June 21, 2009

How To Identify Stock Market Trends

By Gilbert Stockton

The stock market is very unpredictable. It can be a very great thing to invest in or it can be very risky and you may lose a lot of money. The best way to cut down this risk is by identifying stock market trends. It is the best way to make money in the stock market.

When you can get in a stock before the trend occurs, you stand to make a great deal of money, if it's the right company. Can you imagine if you were one of the first investors in a company called Wal-Mart? How about Google? These companies represented a significant uptrend in their respective industries. If you were one of the one's who identified the trends you would be living on easy street today. If you think about it for a second, someone did analyze those trends. They saw the potential and they acted on it. They were greatly rewarded for their actions. This indicates that there is potential for anyone to do the same.

In your lifetime you will be thrown many opportunities and it is up to you to act. The opportunities come less and less later in life but if you act on the right one then your set for the rest of your life.

New products are always being developed but when new technology changes the face of its market or is used everyday these are the type of products to invest in.

A new product comes out and you may think it is going to make a major contribution on the market but its still wise to research it. You want to look at how the product will effect the short and long term market.

When looking at a stock, you'll want to take notice of its price and volume. Volume indicates the number of people that are buying and trading a stock. If the volume is high and the price is high, this can indicate an uptrend in a stock. This is usually a great time to buy the stock, before it gets too high. When you become skilled at identifying stock market trends, you'll get in, in just enough time to make some money on your investment. - 23221

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