I, Resolve

I recently read How to Get Started in Active Trading and Investing by David Nassar. It’s the first book I’ve ever read about investing in the stock market.

Armed with my now encyclopedic knowledge of the intricacies of the stock market, I want to postulate that I believe the stock market is at the start of the consolidation phase. This is the point at which stocks have declined in value, and now primarily institutional investors are starting to buy up cheap securities, prior to the next phase in the cycle – mark-up.

Another indicator, as I understand it, that the stock market is consolidating (the charts here are from the Dow Jones Industrial Average, although the trends are the same in the other markets) is that the volume of trading has increased dramatically over recent months. A lot of stocks are being sold of course, but a lot of stocks are also being bought.

If I knew just a little bit more about how the stock market works, and more importantly if I had enough money to do so, I would consider this to be an excellent time to invest in stocks. Perhaps I should do a little more reading.