The Stock Market Boom in 2011
As more people invested in the stock market, stock prices began to rise. Stock prices then bobbed up and down throughout, followed by a strong upward trend. The strong bull market enticed even more people to invest. Stock market boom had begun.
The stock market boom changed the way investors viewed the stock market. No longer was the stock market for long-term investment. The stock market had become a place where everyday people truly believed that they could become rich. Interest in the stock market reached a fevered pitch. Stocks had become the talk of every town. Discussions about stocks could be heard everywhere. As newspapers reported stories of people making millions off the stock market, the fervor to buy stocks grew exponentially.
Although an increasing number of people wanted to buy stocks, not everyone had the money to do so. When someone did not have the money to pay the full price of stocks, they could buy stocks "on margin." Buying stocks on margin means that the buyer would put down some of his own money, but the rest he would borrow from a broker. Buying on margin could be very risky. If the price of stock fell lower than the loan amount, the broker would likely issue a "margin call," which means that the buyer must come up with the cash to pay back his loan immediately. Many speculators (people who hoped to make a lot of money on the stock market) bought stocks on margin. Confident in what seemed a never-ending rise in prices, many of these speculators neglected to seriously consider the risk they were taking.
People across the country were scrambling to get into the stock market. As more people invested in the stock market, stock prices began to rise. The strong bull market enticed even more people to invest. The stock market had become a place where everyday people truly believed that they could become rich.
Few days later, the market started dropping. At first, there was no massive drop. Stock prices fluctuated throughout until the massive drop. Stock prices plummeted. Vast numbers of people were selling their stocks. Margin calls were sent out. People across the country watched the ticker as the numbers it spit out spelled their doom. The ticker was so overwhelmed that it quickly fell behind. The low numbers of the ticker had shocked many speculators.
As the stock prices plummeted, no one came in to save it. People were in a panic; many couldn't get rid of their stocks fast enough. Since everyone was selling and nearly no one was buying, stock prices collapsed. Many people lost their entire savings.
Every day there were a dozen new stock market tips that make sure your financial success. Every day there were hundreds if not thousands of people that jump on the bandwagon, and every day, each of those people were disappointed.
Every one had a hot tip about the next “big thing” and investors were jumping on stocks as they shot up. Unfortunately, most of these rockets came crashing down just as quickly and many investors held on way too long. The disastrous result was an exact reversal of what every body hoped. In the end, it was a case of “buying high and selling low.” As of yet, there has been little agreement as to the causes.
Stock market is very often difficult, complicated and challenging. Yet for every factor that threatens to hold you back, there are dozens of other possibilities for moving forward.
Feel the regrets, and then quickly redirect energy into meaningful and productive pursuits. Learn from your regrets, act on your knowledge, and soon you’ll have nothing at all to regret.