How to make money in the stock market

Investors buy stock for one simple reason: to make money. The surest way to earn money from investing is to create as diverse a portfolio as possible and hang on to it for a long time. To succeed at making money investors need good sources of information.

Much information is supplied by stockbrokers. They study market reports and get information on the forecasted financial performance of companies. Brokers usually recommend opportunities or provide special services such as newsletters. For this brokers charge additional fees.

Sometimes investors prefer to avoid high brokerage fees. They implement their own investment strategy. Serious investors subscribe to investment newsletters and carefully study the stock market.

A simpler investment strategy is to choose some reliable blue chip stock and stick them. This strategy is safe and can earn money over the long run. Investors should avoid making common mistakes, which are: failure to diversity, paying too much for a stock, which would not go up, not knowing when to sell a stock going down, paying too much attention to rumors and tips.

There are also several techniques of predicting the stock prices. Most investors begin with fundamental analysis, which is the process of comparing a company’s current financial position and future prospects with those of other firms in the same or different industries. Some investors usually called “chartists” try to identify a specific stock’s behavior charting it over time and then predicting its future price movement. Other investors believe that prices are random. The random walk theory is based on the assumption that future stock prices are independent of past stock prices. They choose stocks at random. A group of investors has adopted an unusual approach, which holds that the market will move in the direction opposite to that predicted by general public. In other words, these investors do the opposite of what the general public does.

2. Прочитайте текст снова и письменно ответьте на вопросы:

1. What is the surest way to make money?

2. What’s a simple investment strategy?

3. Name the techniques of predicting the stock prices.

4. What do investors need to succeed at making money?

5. What do brokers usually do?

ВАРИАНТ 2

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WHAT IS INTERNATIONAL TRADE?

When Honduras exports bananas to Switzerland, they can use the money they earn to import Swiss chocolate – or to pay for Kuwaiti oil or a vacation in Hawaii. The basic idea of international trade and investment is simple: each country produces goods or services that can be either consumed at home or exported to other countries.

The main difference between domestic trade and international trade is the use of foreign currencies to pay for the goods and services crossing international borders. Although global trade is often added up in US dollars, the trading itself involves various currencies.

Whenever a country imports or exports goods and services, there is a resulting flow of funds: money returns to the exporting nation, and money flows out of the importing nation. Trade and investment is a two-way street, and with a minimum of trade barriers, international trade and investment usually makes everyone better off.

In an interlinked global economy, consumers are given the opportunity to buy the best products at the best prices. By opening up markets, a government allows its citizens to produce and export those things they are best at and to import the rest, choosing from whatever the world has to offer.

Some trade barriers will always exist as long as any two countries have different sets of laws. However, when a country decides to protect its economy by erecting artificial trade barriers, the result is often damaging to everyone, including those people whose barriers were meant to protect.

The Great Depression of the 1930s, for example, spread around the world when the United States decided to erect trade barriers to protect local producers. As other countries retaliated, trade plumered, jobs were lost, and the world entered into a long period of economic decline.

2.Прочитайте текст снова и письменно ответьте на вопросы:

1. What’s the basic idea of international trade?

2. What’s the main difference between domestic and international trade?

3. Do trade barriers exist?

4. What opportunity are consumers given in an interlinked global economy?

5. What does government allow its citizens by opening up markets?

ВАРИАНТ 3

1. Прочитайте и письменно переведите на русский язык текст:

Дата добавления: 2015-07-15