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Stock InvestingGetting Familiar with Some Mantras
Stock investing has a lot of big words under it that often get market players confused. In the stock market arena, words like analysts and stockbrokers sound right. But then there are a host of
other terminologies that can be classified as propagandist,
perpetrated by Wall Street. These are words that mean to brainwash
investors and get them all caught up in the hype. The brainwashing tactics or mantras of Wall Street can take the form
of numbers like stock ratings 1, 2, 3, 4, etc. They could also be
stars like 1 star or 2 star. The mantras could also be words or
groups of words – neutral, attractive/unattractive, market perform,
market under-perform, market overweight, market equal weight, sell,
buy or strong buy/sell. There are plenty other kinds of
mantras.
Bollinger Bands deal with channels that particular stocks
are trading in based on their “moving averages.” Stochastics tell
when stocks are 25 percent oversold or 75 percent overbought.
The
Relative Strength Index (RSI) is an indicator of stock investing
trade volume. MACD divergence/convergence refers to rising or
dipping stock investing prices in relation to the moving averages. People into stock investing will find such tools
extremely handy as they help generate commissions. But for
investors' dollar-cost averaging in the long-term, such mantras
appear meaningless. Analysts typically give a consensus concerning
companies' earnings per share and return. These numbers are usually
calculated for each quarter and fiscal year. Company size and number
of analysts involved determine the pool size from which estimates of
future earnings are derived. Only recently, a former CEO of the New York Stock
Exchange (NYSE) Richard Grasso was made to resign after his two-year
salary numbers were exposed. His salary consisted of $24 million for
two years, a payment package of $139.5 million and a check worth $48
million. That's just one individual in Wall Street! Who paid his salary? Well, if the funds weren't taken from stock
investing dollars, this doesn't explain why managers of Pension
funds got hopping mad after learning of his salary size, even
threatening to pull out billions worth of Pension funding dollars
from the NYSE. While where Grasso's salary came from is still a
mystery, one thing remains certain, not a single cent came from
Stockopoly investors. |
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