Stock Market Trends – Spotting Trends and Patterns

Spotting Trends and Patterns

Many new investors are easily overwhelmed by the sheer volume of stocks that are traded on the market each day. It can seem impossible to be able to keep track of what’s going on with the whole market, especially when you realize that there are major markets in just about every developed country in the world. Because of the size of the market, many investors decide that they will only pay attention to their stocks, and will ignore movements that are going on elsewhere, but this can be a dangerous way to approach the market. It’s important to pay attention to stock market trends in the market as a whole, because they can give you important clues about what is likely to happen to the price of your own stock.

In order to get a good idea of the general direction in which the market is headed, all you have to do is take a minute to evaluate two characteristics, price and volume. By looking at whether or not the prices of a certain industry or stock are increasing or decreasing, and how many investors are participating in the trading of that stock, you will get a good idea of whether there are more buyers or sellers in the market, which in turn will tell you whether the stock market trends are bullish (increasing) or bearish (decreasing). Basically volume is responsible for indicating movement in the market, and price is responsible for indicating the direction of the movement.

One of the most important reasons to pay attention to stock market trends is because they can let you know when a change is coming in the market. Knowing whether the price of your stock is likely to increase or decrease in the near future is essential for making smart decisions about whether to buy more or sell what you have.

It’s important to remember to trade with the direction of the stock market trends instead of against them. This does not make you a follower; it simply makes the most sense for investors that want to make money in the market instead of losing it. Watch out for sharp increases in price without a significant increase in volume to support it, as these are usually suspicious changes that will usher in a reversal in value. Also, be on the lookout for a decrease in prices with a high volume level, because this usually means the market will soon start trending down.

Network Marketing – The Great Equalizer

If you can fog a mirror, you’ve likely been approached by a well-meaning friend or relative who wanted you to get into their network marketing business. Touting residual income and commission checks too good to be true, their frenzied zeal probably had you faking an injury to make your escape and ducking for cover the next time you saw them.

The truth is, the vast majority (some say it’s as high as 97%) of network marketers bail before their business becomes viable. In addition to a slow ramp up phase, there’s that sleazy reputation to deal with: pyramid and Ponzi schemes, distant cousins who invite you to dinner only to try to sell you on their cleaning products business. “He reminds me of an Amway salesman” is hardly ever meant as a compliment.

Network Marketing Now

That was then, this is now. Network marketing, aka direct selling or multi-level marketing, is coming out of the shadows and is being widely accepted as a viable, profitable business model.

Why? For a number of reasons. In this economy, it makes sense to run a business you can’t get fired from. Residual income is a very good thing. And just as important, network marketing is the great equalizer.

The Great Equalizer

Where else can you become a “franchise” owner for a few hundred dollars with the potential to be pulling in serious residual income within 3-5 years? Where else does neither education nor social status nor ethnicity nor gender make a difference in your prospects, your possibility, your potential income?

Perhaps that’s why Donald Trump and Robert Kyosaki endorsed network marketing in their book, Why We Want You to Be Rich, stating that it gives the average person the opportunity to “play with the big guys.”

The (Slow) Road to Riches

In his book, Beach Money, author Jordan Adler shares his network marketing story: 11 failed MLM businesses before he struck gold with #12. “Gold” is relative if you look at his commissions for the first six months: under $100 per month. Most people give up by this point. They either have other jobs and are trying to do network marketing on the side, and its dismal returns and other interests get in the way, or they’re trying to support themselves on their network marketing and lose patience.

Months 7-12 he averaged $800 per month. Still not enough to pay the bills, and the few people who were still hanging in would probably have taken this as the sign of things to come and jumped ship. An entire year in the business and making just $800/month? In his second year he averaged $2,113. Two years in a business and making just over $25,000 a year. Again, most people would be disappointed by those results, even if this was in the early 1990s.

Fast forward a year. His monthly income? $34,000. Yes, monthly. What happened? A little thing called momentum. Once the snowball starts rolling, it picks up speed and girth. After his third year in business, at a point when 97% (or more) of the world would have bailed, Adler was racking up phenomenal increases each month, from 5 percent to 60 percent jumps. So in under four years, he was making a residual income salary enviable by most. Yes, he was still working to build the business, but he didn’t have to work too hard, he reports. Those he brought in were taking care of business for him. It was now his job to support them, nurture them along, and set them free to make him even more money.

Fast forward again to today: $100,000 or more per month is not unusual for Adler, and when he “only” makes $50,000 per month he checks to see what went wrong. Is this an isolated case? No. As Trump and Kyosaki remind us in Why We Want You to Be Rich, network marketing has produced more millionaires than any other industry. Although it’s rare, the founders of Amway, Rich Devos and Jay Van Andel, for instance, have a combined net worth of $6 billion. It’s good to be king.

Yes, there is opportunity, and yes it helps if you start when the company is young. The further up you are on the “upline,” the better your chance to make your fortune before the market becomes saturated.

Pyramid Is Not a Four-Letter Word

But isn’t MLM a pyramid scheme? Scheme no, pyramid yes. The more people you have below you in the business, the more money you make, generally speaking. It does make a difference whether and how they work the business. But isn’t a corporation built the same way? The head of the corporation makes the most money, and each level below makes diminishing returns. Network marketing puts you at the head of your own business: you can create an empire of your own, even if you have a few levels above you.

Not All Network Marketing Opportunities are Created Equal

But before you jump into the next network marketing opportunity to come your way (and they will), here are some tips to keep in mind when evaluating the company.

1) It should be a low start-up cost, and low maintenance costs

2) It should be a fairly young company, but not too young. It must have some legs to stand on, and have an oversight committee. If not a young company, a long-standing one that doesn’t have a saturated market is fine too.

3) It should provide a product or service you both understand and believe in, otherwise how will you sell it?

4) It must have integrity. This starts from the top down. Find out who the owners are and where they were before they launched the company.

5) It must have little or no competition. .It should be a unique product or service.

6) You shouldn’t have to buy and stock inventory (my pet peeve; some people don’t mind this.)

I have two friends in network marketing businesses. Both are doing well, in the $1000+/month range. I also know, through an acquaintance, a woman who sells a nutritional supplement and makes a confirmed $10,000 per month.

I buy these products, I love these products, I believe in them, and yet I wouldn’t want to represent them. This brings me to the next requirement:

7) You should be passionate about the product you’re representing

You’ll most likely spending months, even years, making very little money in network marketing, so you can’t be in it just for the potential income. You need to believe in the product with such conviction that you would represent it even if (read: when) you aren’t getting paid to do so.

3 Reasons Not To Hire A Marketing Agency

Are you considering hiring a marketing agency to do the marketing side of things for you? If so, then you may want to consider this option. Most of the work that they can do for you are things that you can do for yourself. Plus, the fees that they charge to come up with campaigns for you are outrageous.You don’t need to hire an agency. Your success in business depends on 2 things: a good list, and a good offer. I’m confident that you already have the offer, but the list is something that you don’t know how to get. Heck, some marketing agencies don’t even know how to get the list for you.So why shouldn’t you hire a marketing agency? Well, I’ve put together some of my top reasons why you shouldn’t use a marketing agency. Here’s reason number 1:1) They cost too muchFor what they charge you, you could probably run a few display ads in your local newspaper – along with a direct mail campaign. And I’m willing to bet that you don’t have the money to fork over just to try out a new “marketing secret”. Your funds are probably tight, and needs to be used on something that is proven and guaranteed to work.If you don’t have the thousands of dollars to hiring a marketing agency, I suggest you don’t do it. Here’s another reason why you shouldn’t hire a marketing agency:2) The work is easyEverything that they will do for you, you can do for yourself. And eventually you will have to start doing things on your own because once the contract is up with you and marketing agency, you will have to go back and start marketing on your again. This probably makes you want to vomit, but it’s just the truth of the matter.Here’s the last reason why you shouldn’t hire an agency3) You could find a good course on marketingInstead of spending thousands on a marketing agency, you should know that there are “small business marketing products” out there that will help you to market your business. And these products cost considerably lower than what it would cost you to hire a marketing firm.All you need to know about is something called “direct response marketing”. Marketing agencies specialize in brand advertising, instead of delivering you results right away – so you have to keep this in mind. Brand advertising will always take a longer time to work than direct response advertising, so give brand advertising the boot, and stick with direct response.With all of these options considered, this is why I don’t consider you using a marketing agency when you can do the marketing yourself. Believe in yourself as a business owner and start bringing new customers into your place of business. You can do it without betting the farm on a marketing agency. 2+2 just doesn’t equal 4 when you hire an agency – so keep that in mind.Good luck with using these tips to have the kind of marketing success you crave.