BoomonWallSt.com

The intent is to put forth theory and information that is relevant and useful; hopefully, cutting through the ever increasing noise of "market experts."

Markets have always been evolving, adaptive phenomenons. An historical perspective is essential to understanding the psychological aspects of trading behavior and market activity. In reality, most of us have never seen a stock market like this before. With explosive moves both up and down, the opportunities for profiting are astounding. One must understand, however, that human behavior has changed little over the centuries. There is never a shortage of emotional activity in the markets; greed, fear and denial can work ruthlessly against the professional money manager just as much as against individuals who trade their own account.

If you are a "Baby Boomer," you may have grandparents who witnessed this same phenomenon when they were young, during the Roaring Twenties. The editor's grandmother was 20 years old during the "Crash of 1929." As a tribute to her everlasting youthfulness, her image is part of "Roaring Twenties--The New Era" banner, found in the historical section.

During the tremendous surge of high tech stocks in 1998 and 1999 we often heard pundits chattering "New Era" talk. Other experts, trying to be more rational, fear the increasing prominence of "New Era" talk. They point out that it indicates an obvious overconfidence in our economic prosperity which, of course, is never, truly, guaranteed. But let's be realistic, this truly is a "New Era." With the "Cold War" over, money is free to flow into capital markets worldwide. Productivity enhancements, as a result of rapid technological advancements, have currently returned American workers to the top of the world. Their retirement money continues to flow into mutual funds at an unprecedented rate.

But what of this market and its volatility? How do we deal with it? The, ever increasing, rapid flow of digital information through the Internet has contributed greatly to the current market volatility. Information that was once privy to big financial institutions can now be obtained by anyone in seconds. Individual can move money in and out of the market with a simple click of the mouse. Brokerage commissions are so low they are almost negligible.

All these changes have added to volatility. It is not uncommon for individual stocks to jump or dive as much as 50% on breaking news. Sometimes, although rarely, that news may even turn out to be a hoax. Manipulating the markets is not something new. In the 1920's it was commonplace. In some respects, our current market environment is similar to that of the Roaring Twenties. The changes to the culture, as a result of new infrastructures, was monumental. In the 1920's television was invented, radio became popular and automobiles were becoming affordable to the average person. As a result of technology, the American culture underwent incredible changes during the 1920's. Our present culture is also undergoing incredible change, and once again, it is due to technological advancements.

In many respects, market activity mirrors life in general. Risk, whether physical or financial, is a fact of life. Just as we learned to walk across the city street without the direction of a parent or crossing guard, we can also learn to walk across Wall St. Prowess in the investment community comes with time. The people who do the best in the market are also those who have been there the longest. So, join us! Invest a little time and a little money. Join the growing ranks of independent investors.

Disclaimer:This web site, BoomOnWallSt.com, is designed for the education of people who aspire to be successful stock market traders and/or investors. It is produced for the purpose of providing information only. The information and editorial opinions that are provided herein are not to be construed as an offer to buy or sell securities of any kind. The featured stocks are not to be considered a recommendation but a source of information that may help the investor to make informed decisions about trading individual stocks. It is possible, that at any time, the editor of BoomOnWallSt.com may own, buy or sell any of the securities featured. The information that has been provided by BoomOnWallSt.com has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. Investors should consult a qualified professional before investing in any security.

History  Dynamics  Analytics  Home

Copyright © 2001 BoomOnWallSt.com All Rights Reserved