One of the widest-used quotes in the world of money is one that has been attributed Albert Einstein: “Compounding interest is the most powerful force in the universe.”
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A week ago, opinions on the direction of the stock market were very mixed. Maybe it’s just me, but the mood seems to have shifted. I am sensing a bit more doom and gloom and more of the headlines and news scrolls are on the subject of a market decline. What is a retail investor to do?
So you want to become a stock market millionaire? It’s much easier than you think. Let me rephrase that – it takes a lot less work to become a stock market millionaire than you think. You just have to be smart and patient with your investing strategy. You can’t be jumping in and out of the market, chasing returns. You have to be cool, calm and collected as they say. Outlined below are the steps to follow in order to become a stock market millionaire.
If you ask any trader or investor what is the most important currency to follow they would probably say the U.S. Dollar. After all, the U.S. Dollar is the world's reserve currency. If someone in Asia, or Africa wanted to buy a barrel of oil they would need to convert their money into U.S. Dollars in order to pay for that barrel of oil. Almost every major commodity is traded in U.S. Dollars, so it is understandable why the U.S. Dollar should be followed. If a trader or investor trades the U.S. Dollar Index, they are trading the U.S. Dollar verse a basket of six other major currencies, including the British Pound, Euro, and the Japanese Yen.
So many people are intimidated by investing because they feel like they don’t know enough to be effective. Chris Camillo, the author of Laughing at Wall Street, believes that every day, people can invest in what they know and make potentially huge profits.
As we all know, stock markets around the world have tumbled in 2014 so far. The Nikkei 225 Index is trading down by over 10.0 percent since the start of the New Year. Other leading stock indexes such as the Dow Jones Industrial Average and the S&P 500 Index are trading lower by more than 5.0 percent. While these declines are not really that much in the scheme of the recent bull market, they are occurring at a time of the year when market should be strong. Most traders know that the best months for stocks are from November to April. When the markets close lower in the month of January, it is a warning sign that 2014 could be a very weak year for the major stock indexes.
It is still amazing to see how the public will become so bullish when a stock is at an all time high. Just think about how bullish people are on the financial news networks when markets are rallying up by 2.0 percent in a single trading session, these people behave like cheerleaders at the Super Bowl. On the flip side, the same people become so fearful when a sell off occurs and the stock market indexes decline by 2.0, or 3.0 percent. If you have watched any of the financial media channels when a sharp decline occurs they act and speak as if they were at a funeral. Rarely, will the media say hey there is a great opportunity here for a short term bounce. No, you won't hear the financial media tell you where the opportunities are in the stock market when there is volatility or fear taking place. ...