Investing in the Stock Market

The Money Movement Strategy:

Recently, I was trying to explain the reason why I made money in both the Real Estate and the Stock Markets between the years 2000 and 2005, yet the economy was not really doing that great.

So I did some research and I found charts that show the Dow Jones industrial average over the last 10 years. I also found charts of the Fed Funds rate and Real Estate home sales over the same period. When I compared the charts I found some interesting correlations between the current real estate market, the fed funds rate and the stock market.

I saw that the last time the real estate market had so much inventory was in January of 1996. When I looked at the fed funds rate in that same year, it was also rising between 4.75 and 5 percent and that is where they are now exactly 10 years later. So if we look at the stock market at that time it was also reacting the same way as it now.

With all of this research, if you believe in the money movement strategy which stipulates that wealthy investors tend to move money between stocks, bonds, real estate and money markets. Where do you think the Stock market is heading? I strongly believe that we are going to see some very bullish activity in the stock market over the next 2 or 3 years.

So This is why I think the Stock Market will Rally over the next 4 years.

Just for fun look at these numbers from 10 years ago:

http://www.economagic.com/em-cgi/data.exe/fedbog/fedfund

This was the Fed Funds rate back then.

In the same year which was 1996 we had about the same amount of inventory in the housing market

as we do now in 2006! You can also look that up at:

http://www.kiplingerforecasts.com/economic_outlook/tables/housing/housing_monthly_sales.htm

Finally, look up one more chart: “The Dow Jones Industrial Average”

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=djia&sid=0&o_symb=djia&freq=2&time=13

Now let's answer a few simple questions:

Which way was the stock market moving in between the years of 1996 and 2000?

Why you think that the Fed Rates between 4.5 and 5.5 helped create almost a 100 percent increase in the Stock Market

between 1996 and it’s Peak in 2000?

Do you see if a slight possibility that the Dow Jones could grow by even 50 percent of the next 4 years?

Nothing is certain, but this seems to be the way the big guys are thinking

if there will be money moving in the stock market over

the next few years?

With oil approaching $75 a barrel, do you think the Fed will keep raising interest rates?

They can't afford to. So now we have even more reason to see a rally in the next 2 years.

As a matter fact, it is already in progress.

What do you think can happen if you invest in it too?

Next Tip:

All other ways to "INVESTING"

How to Invest in Stocks, Mutual Fund, and or do a little Day trading.

In the famous year 2002, thanks to our little friend the Recession: two things happened to me:

1) I lost my Job: and I could not find another Job that would pay as much. So I had no choice but to find one that paid less and live with that.

2)The other thing that happened, although I did not realize it until a year later,

well the Real Estate market took off…

But lets forget about Real Estate for now and go back to the first thing.

I had no Job! and I was unemployed for 6 months and

then I got a job, but now I was under employed.

Well I had to keep paying my bills. I did not want to sell my house and I did not want to ruin my credit either!

I was lucky that my wife was still working and she helped me out with her pay checks,

but we were still not making enough money. So I looked around for side jobs and I learned how to start my own

side business. That helped me out a little, but I still needed more income. So I also rented out a room in my

house for a few months. At this point I was barely getting by, but I still wanted to find a way to make more money.

Then came a chance, or so I thought.

I am now going to explain about my "hard knock lesson" in Day Trading Stocks.

It was one day in late 2002, I was invited to a Seminar for Some Stock Trading Software.

It turns out that my brother in law was bragging to my wife about how he quit his job and he was

making money from home via the Stock market. He apparently purchased this stock trading software

for $3000 and was using it to help him trade stocks for short terms. He was making about $300 a day,

and sometimes he made that amount in less than 30 minutes.

Of course like every story: some things are too good to be true. So this is why I am offering you my nutral

opionion about what to do or not to do with Stocks.

Anybody can trade stocks. You do not have to be a Broker. You do however need to use a Broker.

You can also use an online broker account and that lets you do the stock picks and so you are the one who decides

when to buy, and when to sell. I am not Licenced to recommend which broker or account you should use, but you can

once again search the web and find several ones that offer low commissions and almost realtime transaction times.

What you do is you open an account. Usually you can do this online and then you send money to it, usually from your

checking account. One this account is funded you have the right to electronically or via phone : Buy, or Sell almost any

stocks. You pick the quantity and that depends on how much money you have in the account. If all goes well and you

bought 100 shares of “abcd” stock for $10 (it costs you $1000) and now the stock makes it to $11 and you sell it, then

you just made $100. Well almost! You do have to pay some commsiions, maybe you pay about $10 to sell and $10

to buy so You still get to keep $1080 (So in this case you just made $80)

There are some other rules, but you can read about them on the Brokers web sites.

You can also search the Web for more info on:

"Stock Trading" , "Swing Trading" , "Short Term Trading" "Day trading " etc..

The software my brother that we used is called Wizetrade, This program has easy to read green and red lights and

charts, that help you to decide when to buy and sell stocks.

You can go to the wizetrade website for more info.

There are also some other programs that track charts: One of them is called Metastock

both Wizetrade and Metastock will cost you some money upfront but the money that you can make in the market will

help pay them off quickly.

Coming soon more topics:

What other business is good for you

Finding Bargain to sell on the Online Auctions

There are so many ways to invest your money.

But always way out the risk of an investement. You may want to look at a historical chart of maybe the last 5 or 10 years.

Take a look at both the good and bad times and this should help you decide.

If you are using money than you can afford to loose than you can try something more aggressive. But please: do not get to greedy.

Too much risk oftern leads to total loss. Also please do not take risk with borrowed money.

There was a time that I wanted to make a lot of money fast. I used margin (borrowed money from a Stock Broker) and I invested it

in High risk stocks, only to find that as the stock went down in price, not only was I loosing money but my broker also wanted me to sell.

So guess what I lost double! Please do not make the same mistakes.

Invest in such a way thay you earn 8 or 10 % and you will do fine.

If you buy Real Estate, Make sure you research the market you are in.

Do not let your Realtor or anybody try to pressure you into buying something for more than the appraised value. Actually try to get it for

10 or 20 percent less. This same advice goes for almost anything that you buy or invest in.

Thanks for visiting my site. I hope you find this information very useful.

If you would like to find out more info: please email me at

info@movicompservices.com

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