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Signs of a bottomEveryone wants to find the bottom of the stock market so they can make huge returns and be looked at as a genius. But often times the only way you can tell when a bottom is, is after the fact. There are some signs that you can look at however to determine if the bottom is coming. Everyone wants to find the bottom of the stock market so they can make huge returns and be looked at as a genius. But often times the only way you can tell when a bottom is, is after the fact. There are some signs that you can look at however to determine if the bottom is coming. 1. No one believes it One of the best signs of a bottom historically has been when no one believes they are at a bottom. Everyone hears bad news and has some reason why the markets will keep falling. But remember the stock market is a forward looking instrument. Stocks could start trending up 6 months or more before we see any recovery in the actual economy. 2. Stocks Stop Falling Of course before stocks can start to go up again the first thing we need is for them to stop falling. When the markets start stabilizing again that is normally a good sign that the worst is over and we may see stocks start heading up again. This can take a long time, it isn’t that stocks just start going up all of a sudden, but they normally take some time to cool off first. 3. Leaders emerge Often times a few of the strongest stocks will start trending higher. When those stocks start heading up it is normally a sign that other stocks will follow their lead, but not always the case. Of course the stocks that recover the fastest might make higher returns than the market. I wouldn’t mind getting into them as long as I cut my losses short if I’m wrong. 4. Reversal Patterns Normally the bottom of the market is marked by a reversal pattern like the heads and shoulders or the double bottom. These patterns aren’t always accurate, but they are worth looking at. Of course there is no way to tell for sure whether we are at a bottom or not For more on the stock market visit http://www.stocks-simplified.com For some stock market tips visit http://www.stocks-simplified.com/stock_tips.html Article Tags: Stock Market Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHORWhen I was young I wanted to learn how to trade the stock market. So I traveled around the country listening to professional traders talk about how they are making money in the market. Now I understand how easy it is to make money in the stock market and started a site http://www.stocks-simplified.com to help others learn. 
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