What factors are needed for a stock market to succeed?

Question

mhm so what are the important things needed in order for a stock market to begin

Answer 1

1.     invest the blue chip large cap stock

   2.    invest the index fund stocks

  3.     invest only your own money borrowed capital

  4.    keep patience

Answer 2

The question cannot be how the market will succeed. it's how will you succeed in the market.

Don't be greedy.

Have targets.

Always have an exit plan.

Always understand what you've invested in.

Don't buy a stock because you "feel" it's going up.

Use "position sizing".

Have and follow an "asset allocation" plan.

Answer 3

Supply and demand to create a liquid market in a given item, product or company

Answer 4

Your question is too general and vague

Answer 5

Actually, I don't think your question is vague if what you are referring too, is what does it take for the stock market to do well, or in most peoples minds, rally or go up.

Stock market history has an answer for us. It takes 3 things.

1) Leadership. Every new stock market bull rally has the emergence of new leading stocks. For example, new industries crop or new companies with new products to sell. Before microsoft and cisco became the megacap bellweathers, they were new companies that fueled the boom of the 90s. Its true that the same sectors need to participate each time, i.e. financials and the industrials, but new leadership has been a part of every market rally.

2) Institutional involvement. Institutions that manage billions of dollars need to be accumulating stocks. This shows up in big up days on heavy volume of shares traded. Each market uptrend starts and continues with this showing up.

3) The major indices need to be trading above key support lines, most importantly the 200 day moving average.

Contrary to popular belief the economy does not need to be doing well for the market to rally because the stock market looks forward and often starts to rally when everyone is talking about gloom and doom in the economy.

Answer 6

The first rule in stock investing is too keep your losses small.  Set a percent decline from your purchase price that you will let a stock fall.  It can be 5, 7, 10 per cent.  But, most importantly, you need to follow YOUR rules.  Set a similar scale for taking part of your capital gains in a good buy.  I think, most modestly,  that all investors have to have a set of rules and follow them.  Since you are human you will break your rules from time to time.   Usually, you have to pay for letting your ego or emotion play a role in your strategy.  You must remember that sometimes you know a great deal about a product.  But, if the market is selling the stock off, then there is something wrong that you dont know.  Usually the insiders and Wall St. pros have superior information to the rest of us.  The insitutions move a stock price.  You cannot beat Mr. Market.  Just try to understand Mr. Market.  Good luck.

Answer 7

capital and liquidity

Answer 8

What is "mhm"?

Answer 9

View It Now    FinanceExtends (dot) com

Answer 10

Errrr... methinks somebody wants help with homework :-)

1. Companies who are wanting to sell shares so as to invest in themselves.

2. People willing to buy shares in said companies.

3. A stock market area which controls the buying and selling of shares and checks that companies are making honest and reasonable requests in the selling of shares of themselves.

Answer 11

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