Some people who invest into the stock market use other peoples money to purchase those stocks. It is called buying on margin and is equivalent to purchasing a home on credit. The main difference between the two is you can improve your homes value by updating and remodeling and you rely solely on the stock market in order to pay off your loan on marginal stock purchases. The recent stock market problems were caused in part by marginal stock holders whose investors became nervous and demanded their money before the stocks could make a profit. This drove the price of these stocks to all time lows.
Short Term Trading Based on The Inside Bar Pattern
June 25, 2009 By
Many investors who are just learning technical analysis will make short-term investment decisions based on reliable, longer-term patterns such as the head and shoulders top discussed elsewhere in this series. The difficulty with such a strategy is that short-term trades based on long-term patterns will typically not yield the desired gains.
