The media is full of news about the huge swings both up and down of the stock market. This creates fear at times and unfounded securites at times. While it was supposed to be that a company's stock should go up if it is being run efficiently and that its stock should go down if it has troubles of various kinds, nowadays events even remotely unconnected to a specific company's performance seem to affect its stock price -- wonder why -- that is because human beings with their emotions and fears invest in the stock market -- with the result that the price of a company's stock varies quite a bit day to day .
If you still want to invest in the stock market, investing a little bit of money steadily over the long haul seems to be the best alternative -- also called "dollar cost averaging", this technique smooths out the frequent ups and downs in the market's behaviour. There is still no guarantees that tremendous strides in wealth will be generated -- that is a risk that one needs to cope with. All of the statistics, charts and graphs of past performance really do not present any predictions of the future simply because human beings do not always behave in predictable ways !
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