Understanding How Things Work, A Must

We all have thoughts and opinions about things that matter to us. Some people critically think about end times and the events written in revelation. Others have strong opinions about politics and what the outcomes will be in the next election.

I have many thoughts and opinions too, especially when it comes to understanding systems of operations. I like to critically think and discover how systems operate with hard data and pure observation sometimes.

The following are some of my latest thoughts… Hope you enjoy them as much as I do.

1. In any economy, there are sellers and buyers. These sellers and buyers vary in size and purchasing power. They can trade in cash or credit… “Margin” if they choose to trade stocks. An economy is good when businesses sell more than what they spend. An economy is great when businesses sell much more than what they spend.

2. Stock prices increasing don’t mean that the average person is wealthier (people are doing good) as some may claim. It means that speculators think that companies may have a positive net gain from customers buying their products with either cash or credit.

3. That’s why we have so many banks in America. The economy is based on people using cash or credit to make transactions. The more credit a person has to use to trade (rent, food, car payment, extras) the poorer this person gets in the long run. Credit is an element of debt.

4. Income and wealth are two different things. Pay attention to speculation and read news daily about the market you intend to trade stocks in. Don’t invest in stocks you don’t know. Always trade with caution when strategizing short term. Remember: Markets go up and down.

Strive to understand how things work. It can be really good for you, I say.