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For the past 6 months and longer everyone has been denying we are in a bear market. Mr. Market has not been paying attention to the nay sayers and has been declining.

This article aims to address the pros and cons of the investment strategy known as ‘market timing’. Market timing is the strategy of making buy or sell decisions of financial assets by attempting to predict future market price movements. The prediction may be based on an outlook of market or economic conditions and the strategy is based on the outlook for the market as a whole, rather than for a particular financial asset.

You don’t believe this is a major bear. Well, you are in for an expensive lesson. All the “experts” on TV and the radio and the pretty cheerleaders on TV all seem to think we are at a “bottom”. It’s time to buy.

You probably know what a stop loss order is, but I better explain because your broker does not want you to use this technique to protect your investments. If he doesn’t want to follow instructions you better get another broker because he is going to lose your money. His brokerage company also does not want you to do this because even if you don’t trade and leave your positions dormant they still make about 1% while you are losing equity.

If you’re a committed covered call writer, getting called out of your stock and being forced to sell it at the agreed upon price is actually a good thing. It represents a successful trade–the premium you collected is yours to keep and you’ve also most likely locked in a modest increase in capital gains. But what if you’re a long term investor? What if you don’t want to sell your stock? The real question then is: “Can long term investors benefit from writing covered calls without having to worry about being forced to sell their long term positions?”

Stock markets generally move in cycles. There are times when the economy is strong and share prices are trending nicely upwards, and conversely there are times, such as now, when the economy is looking weak and shares are trading at very low levels. So why aren’t we all rushing to buy shares in this current economic climate?

Just what did the stock market do during the Great Depression in the 1930s? Were there any rallies or was it just all down, down, down for 10 years? And what were prominent people saying as the market was falling?

Do you remember why you started trading? You ended up spending more time rather than less time working. Do you get the results from your trades that you had once envisioned? Here are some trading tips that will allow you to be more efficient with your trading both profit wise and time wise.

These are usually the shares of relatively small companies who want quick cash inflows and having a market capitalization of less that $500 million. Penny stocks are also known by the various names such as micro cap or small cap stocks, pink sheet stocks and nano stocks.

Amidst all the drama in the FTSE market, it is easy to forget the collective wisdom that has been passed down through the years. The few that listened and acted accordingly will testify that their investment portfolios are in very rude health. So here is a reminder of just a few of the timeless pearls.