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Question in Quora: “After the coronavirus outbreak is over, do you think investing concepts like 'socially responsible investing' and 'investing in the quality of economic growth instead of just the quantity' will take a center stage?”

This is an excellent and important question and I am not sure I have the entire answer.

What I do know is that this pandemic is going to change the global Financial Markets in ways that even the financial experts can’t conceive yet. It is going to alter and shift the Balance of Power in many financial hubs globally.

What matters most right now is that this pandemic was avoidable for the US, Canada, and Europe. China did advise the world on December 31st that it had a new novel virus that was deadly and the risk of an epidemic in China made that government act swiftly to lockdown the region to protect other regions of China.

Whether or not all the data from China is accurate is not the point. What matters in social responsibility at this time is the fact that governments failed to react swiftly and decisively to a known threat of pandemic, leaving airline travel from China to the US, Canada, and Europe open for many weeks, allowing the virus to spread into a pandemic.

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Question in Quora: “When do you believe the stock market will return to its former highs after the impact of the coronavirus crisis? Are you adding to your portfolio now, or waiting for the market to drop more?”

Most Great Bear Markets are the downside of the Stock Market Cycle and commence at the end of a Great Bull Market (lasting 6–13 years average). Historically Great Bear Markets last 1.2 to 2 years and losses average commonly around 50% or more off the all-time high values of the indexes. Individual stocks can lose as much as 80–90% and companies that were weak before the Bear Market often fall into bankruptcy.

Pandemics that are in every major region of the world tend to last 1 -2 years before the pandemic and new novel virus is contained and controlled and vaccines become available usually within 6 months to a year.

The recovery period after a Great Bear Market can be several years to over a decade for indexes and some companies. How fast an individual company’s stock recovers depends upon the CEO, their business cycle, new technology, new products or services and global demand. Some firms will recover very rapidly, while others will take more than a decade or longer.

Wise investors started moving their capital and realized profits to Money Market Funds as early as 2018 and into 2019. The reason why the wise investors do this is there is no way to predict a speculative top and it is nearly impossible to hold onto unrealized gains once the market collapse starts. The market lost all of the gains from November 2019 to February all-time high in 4 days.

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Question in Quora: “How will the stock market look a year later after the corona virus pending a cure is found?”

The best way to determine what may happen in the future is to study the past. Below is a chart of the Dow covering about 100+ years of data. The Dow 30 is the only index with that much data.

The vertical lines are an approximation of the duration of each pandemic since the Spanish Flu Pandemic of 1918–1920 approximately. These are ONLY Flu pandemics not all the other types of disease pandemics or epidemics for the past 100 years or so.

The average time a pandemic lasts is anywhere from 1–2 years which is, coincidentally a similar cycle time for a Great Bear Market, which is occurring at this time.

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Quora question: “Is it more difficult to trade stocks during a recession?”

My answer: The economic recession is not the difficulty. It is where the stock market is in its Bear to Bull Cycle. If there are many stocks in bottoming formations that show strong Dark Pool hidden quiet accumulation, then it is a much easier market condition for beginners than this current volatile Phase 1 of the Great Bear Market.

The Stock Market Leads the Economy. Once the Bear Market ends as stocks fall back into their fundamental levels where price to fundamentals are in sync again, then the stock market will bottom and begin a Baby Bull Market.

I call it a Baby Bull because it is a new Bull Market entirely and in the earliest phase, it doesn’t look or behave at all like the prior Bull Market which had been extremely speculative.The recession often continues long after the market bottoms and begins the new bull market.

There are opportunities for day, swing, momentum and platform position trading depending you your preferred trading style which is based upon:

1. Capital Base you have to trade stocks.

2. The amount of time you have or wish to spend trading stocks.

#stockmarket stocks trading investing

Quora question: “The stock market has been on a downward trend since the start of Covid-19, but every large decline seems to be followed the next day by a large, though somewhat smaller rise. Why and can this be exploited?”

The stock market behavior you refer to is due to the Money Central Banks stepping in to act as the Market Makers during this crisis. Market Makers Role is to “Make the Market” which is to provide the opposing side of the transaction when there are insufficient numbers to balance the buyers to sellers supply and demand ratio.

Banks have been provided with Federal Reserve Bank monies to provide support for falling stocks and to attempt to mitigate the downside runs. Their focus is not the broad base of some 5700 stocks but only the index components. The goal is to slow down the selling and provide buy orders against all the sell orders.

Although it appears to be highly volatile on the daily chart, the intraday 1 minute chart shows a very orderly selling and then steady buying that moves prices back up temporarily.

The goal of Market Makers is to:

Provide the buyers when too few are present in the market when there is a run on the stock market.

To slow down the selling to a manageable speed and decline.

Read more here: https://qr.ae/pNvnKA

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Quora quesion: “What would explain two 1,000+ point increases in the DJIA, in the same week, when the drops of similar magnitude are apparently explained by coronavirus fears? Did investors stop fearing for two days?”

My answer here: The bond market has inverted several times. The interest rates are extremely low.Many Bond Funds have junk bonds (highly leveraged risky bonds) in the fund as well as AAA bonds.Corporations are at risk of defaulting on their bonds this year due to an extreme leveraging of debt by many corporations to get cash for corporate stock buybacks.The government of the USA has never defaulted on the T-Bills but even that is now a question of whether the government with debt rising even more will be able to meet all the obligations in the near future. Read more here: https://qr.ae/pNndqf

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Quora question: “Is it a good idea to swap my retirement account from stocks to bonds during a bear market?”

My answer here: The bond market has inverted several times. The interest rates are extremely low.Many Bond Funds have junk bonds (highly leveraged risky bonds) in the fund as well as AAA bonds.Corporations are at risk of defaulting on their bonds this year due to an extreme leveraging of debt by many corporations to get cash for corporate stock buybacks. Read more: https://qr.ae/pNnJE2

Is investing during a bear market feasible at all?

Even during a Bear Market there are companies that are going to outperform the overall indexes aka “the stock market”. It is a matter of understanding why this occurs.

Not all companies will enter a bear business cycle all at the same time. If you were to take the 30 components of the Dow (DJIA) and study each one individually, right at this moment, you would find that most are NOT at new highs. Only a few are at new highs.

This is the strength of adding technical analysis to your fundamental and risk analysis. You can see the trend of each stock. About 20 at this moment in time, are below their all-time high. Read more https://qr.ae/pNnnXG

#investing bearmarket

What are the best methods to double your money without losing it all?

The best way to double your stock value is to select a stock that has high potential for growth and then the patience to wait for that double of value to occur.

This requires an education that puts you in the drivers seat choosing your stocks. Guru recommendations usually are done as the guru wants to make profit by selling.

By studying stock charts, you can assess the run gain potential or long term target gain potential as well as study fundamentals. Just hearing that a stock “beat estimates” in an earnings season is not enough. Read more here https://qr.ae/pNnn7F

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How do I start investing in the stock market as a beginner?

Beginners need to be particularly cautious as it is often hard to distinguish a scam from a true educational company. There are many con artists that appear legitimate but do not have SEC credentials which are a requirement.

Beginning investing in the stock market starts with learning the language of the financial markets. This doesn’t take a lot of time but you need to know the terms used and what each means.

You also need to learn which fundamentals are accurate and reliable and which are not. Many websites have outdated 1990’s information that is no longer relevant or accurate for the modern fully automated stock market. So be careful what you read and believe. A book written 10 years ago is outdated and the strategies can be high risk due the massive structural changes that occurred in the stock market over the past few years. Read more: https://qr.ae/pTX0Ey

Do you make more money with long-term or short-term stock trading?

The two are entirely different in terms of purpose. Long term is your retirement and wealth accumulation. Everyone, including intraday traders must have long term investments and wealth accumulation investments. Trading is for monthly income. Trading as a Business, is an IRS designation for retail traders who are not professionals in the financial industry. These retail traders set up a business and trade stocks for a living. The average income is $10g to $30g a month depending upon the traders expertise in his or her trading style, the size of their capital base, their education, skill, and techniques for trading all of the 6 different market conditions, and their risk tolerance. How much can be made also depends on whether you are trading part-time, example once a week for 3 hours or if you plan to do trading full-time as a career. Read more: https://qr.ae/pT0M0H

What do you think are some common mistakes that a newbie makes while starting investments in the stock market?

The Top 5 Mistakes that new traders or investors make that I see all the time are:

Assuming that you can learn the stock market via the internet, articles, websites, and videos. These are often outdated information and many are scams. You must be careful that what you study is CURRENT as the stock market has undergone massive internal structural changes in the past few years.

Rushing to buy something you know almost nothing about. When investing in a stock or learning to trade a stock, there should never be a sense of urgency. You should never feel that you have to rush and buy a stock today. That stock may be speculative and you need to study and make sure that the stock is a bargain price with many years of business growth ahead RATHER than buying a stock as a company reaches Market Saturation for its products or services. ALL companies have business cycles up and down. You do not want to buy a stock as the company begins its bear cycle. Read more: https://qr.ae/pT7W76

Why are stock market officials clapping and smiling when the market ends the day with a large loss?

The Stock Market is a very old institution and they have their traditions. The ringing of the bell at open and the clapping at the end of the day is the closing ceremony. ALL professionals know this fact.

How do I start investing in the stock market as a beginner?

Beginners need to be particularly cautious as it is often hard to distinguish a scam from a true educational company. There are many con artists that appear legitimate but do not have SEC credentials which are a requirement.

Beginning investing in the stock market starts with learning the language of the financial markets. This doesn’t take a lot of time but you need to know the terms used and what each means.

#stocktrading investing stockmarket

Is it best to refrain from trading when the market is going through a correction, and why or why not?

If you are trading for monthly income, then you need to learn to trade both sides of the market. To succeed in a career as a retail trader OR as a semi-professional full-time technical trader or accredited investor, you must be able to profit from the uptrend and the downtrend.

Contrary to popular gossip and myth, selling short is NOT evil or wrong. There is a vast amount of stock held in long term positions. These are held regardless of the corrections.

This stock is held in retail broker accounts as well as mutual funds. ETFs are short term.

There is a good reason WHY the SEC allows selling short. The professionals of the market, and it is a smaller group, sell short providing the BUY to COVER when there is a panic high demand to sell stocks by the massively huge retail investor community.

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How do I start trading on the stock market?

Trading the stock market requires:

An education. Retail traders tend to think of education as You Tube videos and articles on websites, or strategies they learn from a retail trader turned guru. This is not an education. These are tidbits of information that may or may NOT be useful, accurate, or trading reliable.

A computer that is fast, has a minimum of 2 screens, and a brokerage account that you can trade directly from a stock chart.

Technical Analysis is mandatory. You need to be able to read a candlestick chart as easily as you read this answer to your question. When you can look at a chart and quickly identify who controlled price and also why they controlled price, your ability to determine what price will do in the next minute, day or week is greatly enhanced and more reliable. Read more: https://qr.ae/pRidZl

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