Something inexpensive that i can just hold on to. Any suggestions would be appreciated
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The markets are being propped up artificially by QE ad infinitum, and subsequently, margin is next to nothing and being abused to a scale never before seen. Not only does this allow institutional traders to buy, buy, buy, with next to no skin in the game, but it also allows corporations to buy back their own stock such that they can release it in the future when interest rates are higher. This is known as "creative accounting."
Plus, with the advent of index fund madness, the SEC has allowed MANY MULTIPLES of outstanding shares of all stocks to be sold, far, far above the number available for ownership. Whenever you purchase shares in an index fund, such as an "S&P 500 Fund," that fund has to own, in your behalf, an equal proportion of shares equivalent to their distribution in the index. This means that ALL THE DOGS in the S&P are inflated, along with everything else.
Analysts have been warning about an impending crash for months. Real estate is already crashing in some markets. Inflation is off the charts, and the U.S. is dangerously close to losing preferred nation status with the U.S. Dollar. Forgive me, but this is not a market for a self-described rookie looking for stock suggestions on GAW.
I was a futures trader many years ago...not a stock trader...but I know plenty about the markets. Based upon my analysis (I was a technical trader), the DOW should be trading in the 15-17,000 range. There is absolutely no justification whatsoever for it to be trading at these levels. You may say, but I'm not interested in any of the DOW 30. Believe me, if the DOW is cut in half, all the others will follow. As a matter of fact, the NASDAQ is even more overvalued.
Stay in cash for now. You will get your chance. Don't look at stocks going higher, and have FOMO. That happens to every trader. Papertrade to begin, while you learn the ropes. Learn about executing limit orders, and plan the trade: trade the plan. Don't get greedy, and think of trades as a lottery ticket. Execute smaller trades, in and out. Trading is more psychological than most people realize, and the traders who fail, fail to recognize this important factor.
I’m not an expert in stocks but before all this derivatives BS didn’t people buy stocks in companies that were good so they could share in the profits? You would buy a stock to get paid a dividend and eventually when you had enough stock in good companies you could retire off the dividends.
Now the only profits are made when the price of the stock goes up.
It seems with all these stock trading apps a lot of small money is being invested that the dark pool traders can eventually steal.
The market is rigged.