| Stock markets move erratically in shorter time | | | | buying stocks during the depression, you'll most likely |
| periods, but in longer time periods such as 10 years | | | | be able to buy a lot of stocks at rock-bottom prices, |
| or 20 years or even more, stock markets generally | | | | ensuring that you will be collecting a handsome profit |
| move upwards (since inflation is a global phenomenon | | | | when the market picks up again. |
| affecting everything that has a price tag). However, | | | | However, be wary of selling too early for the market |
| periodically the stock market crashes on its own | | | | to fully recover - don't try to sell at the moment you |
| weight and the economy enters a depression. | | | | see a profit can be made. Wait until you see the |
| Usually, the crash happens at the peak of a bull run, | | | | stock prices move sideways erratically again. When |
| where stock prices keep on going up making | | | | that happens, you'll know that the cycle is mature |
| everyone rich. At that exact point in time, people | | | | and you have to sell sooner than later when the |
| suddenly want to take profit and sell off. And poof - | | | | market crashes again. |
| a surge of supply drives the prices down to | | | | With fresh capital in your hands, go out and buy the |
| rock-bottom. Take note though - this plummeting | | | | cheap but immensely valuable stocks once more - |
| price has no bearing whatsoever towards the actual | | | | and repeat the process ad infinitum. This is a baffling |
| value of the stock. It's merely a representation of | | | | art of speculation, but remember - having a system |
| what people are willing to pay for a given stock. | | | | for investing in stocks is worth its weight in gold. You |
| When prices are this low, the people who rode the | | | | can never profit from the stock market without a |
| wave up come crashing down. And, they sell to the | | | | good strategy already laid out beforehand. |
| first bidder - which HAS to be you! Especially if you | | | | Study the market, observe what the experts say |
| know very well that the stock you want to buy are | | | | and how it affects stock prices, get used to it, and |
| stocks of a very good, stable company. There is a | | | | gain experience over time. The important thing is |
| truth to Warren Buffet's saying, Be greedy when | | | | consistency in studying the markets and the behavior |
| others are fearful. Since you're one of the few | | | | of the people involved in it. |