Different revered economists and popular investors are warning the Americans about a potential stock market crash. The founder of Quantum Fund, Jim Rogers along with George Soros went prophetic when he stated that a $70 trillion dollar collapse of the stock market is poised to wreak havoc among millions of Americans. Other investors joined this apocalyptic statement and said that the investors in America are sailing on the Titanic and that the stocks are all set to withstand a nerve-wracking drop which could set a history in the record of the biggest crashes of the stock market.
The Royal Bank of Scotland also said that the stock markets are giving stress alerts which look similar to the crisis of 2008. They recommended their clients to sell everything that they had as the exit door of a crowded hall would become small for them in the near future. Some of the blue chip stocks like Microsoft, Apple and IMB will fall down heavily. The prediction of James Dale Davidson, the famous economist behind the correct prediction of the collapse of 1999 and 2007, also warns that the 50% collapse is looming larger and it is already at the doorstep.
How does Davidson back up his prediction?
The predictions and expectations of Davidson have been so accurate that he had been proposed to shake hands with Bill Clinton and Ronald Reagan, the former presidents of America. Everybody is sure that when Davidson says something important, he backs it up with facts and figures. Among what he says, the most alarming fact is what Davidson states as the key reason of the collapse. According to him, this collapse has nothing much to do with the meltdown in China, presidential election or even the Wall Street speculation. It is rather linked to the financial ‘curse’ which their Founding Fathers had previously warned them about.
Although the future of the Americans may seem to be sluggish enough, it doesn’t mean that you have to fall victim to the crisis. If you take the right steps to safeguard yourself from what is approaching, you could seize some of the best opportunities for your lifetime.
Beating your peers in the stock market – How to brace yourself against all odds
The stock market is often considered as a competitive and difficult game and it is also a platform which comes with its share of letdowns, failures and losses. After reading the aforementioned predictions, you may think that the statistics are tough to swallow but the good news is that you can do better when you follow some tips and advices. Pay close attention to the tips given below.
- Cut down losses as soon as you can when you go wrong
When you trade the stock market, there will come a time when you make wrong or poor decisions and this happens with everyone irrespective of being a novice or a seasoned trader. When you make bad decisions, you should immediately take steps to cut down on your losses. As you get to know that the investments go wrong, cut down on losses as soon as you can. You neither require staying partially nor fully in such investments. You should be able to move out from an investment quickly. Never feel that you’ve got stuck in a bad investment.
- Analysts and management people shouldn’t be always trusted
Never rely too much on analysts and management from the Wall Street. You should do your own research, take into account your investments, educate yourself and monitor trends as this is one of the best way in which you can make smart decisions. The 90% of the people who usually lose money in the stock market are those who watch out for the same analysts and management experts for seeking advice. Most of the time, they get poor results. You should therefore do you own research and move ahead.
- Track records play an important role
As you take a look at various companies and plan to invest your dollars, one of the most vital things to keep in mind is that their track record is the biggest thing that needs to be checked. Learn from the people who have got proven track record and who have been generating profit throughout the years. Such companies and individuals should be followed. Try to follow what they do while investing in the stock market.
- Find out the strategy which works for you in the best way
You require looking for a strategy which is the most comfortable for you and your trading style. If you don’t have enough patience, you should opt for day trading but remember at the same time that this is not the only way to trade the stock market. In case you’re busy with work and school and you won’t get enough time to trade daily, consider long term investing and swing trading. In short, do something that best suits your lifestyle.
- Stocks are priced longer than the time you may stay solvent
This is another thing which the stock market trader shouldn’t forget. Most often stocks are priced irrationally, sometimes even longer than the average person can ever remain solvent. You should know that the market trends are always right, human beings are usually wrong. You should therefore be sure about obeying the price action. Never think that you are someone bigger than the stock market. It is only when you adopt this kind of mindset that you can position yourself for achieving more success than any other average trader.
Therefore, if you’ve already become scared about the predictions of Davidson, you need not fret as you should take the above mentioned steps to safeguard yourself. In case you get help of an expert, make sure you appoint someone who has your best interests in mind.