Learn How to Invest Money - Market Makers and Volitility

Learning how to invest money in stocks is not difficult, but it is also not an easy task. The theory and methodologies are simple, but to make money consistently can be a challenge. There is no doubt that you will loose money, despite what all these companies promise with their computer software, strategies, and so fourth. What you need to do is invest and stay on a net positive by accurately predicting good opportunities to invest in. The trick is to figure out if you're investing in a market movement and not in a market makers?

Market makers typically use stock promotions methods such as email marketing to boost open market value. Market makers then sell off volumes of paper into the marketplace unnaturally swing markets and create shor, making profits by pulling investor funds out of the market. This short-term demand and inflated pricing caused by the promotion boosts a company's stock that has little or no equity, and the price crashes after the market maker ends the promotion.

Market movements and market swings (market volatility) we want to find are the natural movements in market price that are not artifically generated through marketing. Companies that hold equitible assets build value and thus sustaintheir market prices. We, as investors, want to locate companies with good price increases caused by aquiring assets. Market volitility will always be there, and the more swings you have, the more more money can be made. You as the investor want to be positioned on the winning side of the swing. How can you do this without a crystal ball? Buy low, sell high. Find companies that have low price to book (P/BV) ratios or price to equity (P/E)ratio.

P/BV= Stock Price / (Total Assets - Total Intagible Assets and Liablities)

P/E= Price Per share/Earnings Per Share

A low P/B ratio could mean the stock is undervalued. You should be weary about these ratios though as the denominator can easily be manipulated by creative accounting. Keep in mind, equity cannot be faked if the equity is hard tangible assets such as land, equipment, or infrastructure. All US GAAP standard bookable assets have value. It's not easy to locate a company that is undervalued, but if you do, then you've literally struck gold.

Fine Line Holdings is one of several companies that we have found. They're working on restructuring their company to build equity and shareholder value as per this article on market wire. Originally, Fine Line Properties was an animations company building itself to be the next "Walt Disney" of cartoons. Today, Fine Line Properties is part of Fine Line Holdings which is a holding company with several different assets under their umbrella,including Monarch Cancun a huge development project in Cancun that is sure to produce huge equitable assets. Robert Petrie, president of Fine Line Holdings is apparently going to be the first feature on Microcap Media, a new junior company awareness website.