Stock Market Crash: What Happens When History Repeats?

Stock Market Crash: What Happens When History Repeats?

Have you ever wondered how the stock market crash? The atmosphere of the stock market is absolutely unpredictable and, nobody knows what happens the next minute.

Most of the speculation plans goes hay-wire and, public seems to lose the assurance in their investments, which means the stock market has crashed. To be precisely told in booklet terms- A stock market crashes when there is a sudden sharp drop in the stock prices across greater part of the stock markets.

Investors are bound to feel angry since; the trusted share market is playing implausible tantrums. The stock market’s crashing major effects are more visible towards middle class and retired people who are with partial savings.

With the stock market crash, every stock price seems to be sliding and, nothing comes out as per the calculations. The after effects of the market crash can be experienced for many days. Overall it has a distressing effect on the world financial system.

The foremost reason behind a stock market crash is fright. These frequently take place when people start hastily clearing their stocks and, the major one is losing the confidence in the market. This mass madness and depressing response of the stock market fuels the rage of selling stocks which continues to drive the stock rates downward.

In turn, the economy gives rise to various desolations such as unemployment, crimes, homelessness, increasing number of school dropouts, etc.

Millions of investors hope that the market stipulation will soon improve and yes why not. It can be improved with simply by experience and knowledge.

Since; nobody is able to predict the market perfectly (not even some hot shot billionaire investor), buying the stocks when they are 30% bottom in the market and selling during when at 30% peak an investor can go along making a successful saver.

By knowing few simple trading strategies, investors can actually be able to make out during the stock market crash.

Seeing the reality, no one can predict the market, it acts as it likes. The policies and people make and break the market; it only act as per the consequences.

The truth is most of the investors, brokers go by the created hype and, blindly follow the trends without any analysis and research and then hopes that some miracle will happen.

1929 Stock Market Crash – What Happens When History Repeats

A stock market crash is the sudden sharp drop in the prices of the stock across the most of the stock market in the world. A crashing in the stock market means a huge financial loss caused by varied economic factors and at times by mass panic in public.

The history has faced a lot of such stock crashes, but the 1929 stock market crash just broke all the barriers and landed with the thud creating a huge dent in the world wide economy.

Following the First World War, there came the phase where every continent was arriving into new era. It was the phase of novel optimism and enthusiasm. Nearing to the year 1928, the stock market boomed. At this point, everybody thought of becoming rich, and the time came by in March 1929 where the stock market showed it first rage, and following during the spring it landed stridently taking most of the economy down.

The house construction slowed down, car sales were nearing to zero, many manufacturing production were almost shut down. Many people lost their entire savings and even jobs.

With this sudden thrift of 1929 stock market crash, many of the stock brokers, investors and companies learned a great deal of lesson of not to trust the stock market fully. It is important to remember that stock market is unpredictable and doesn’t remain straight forever.

What people have experienced in the past is the classic history of mob physiology and that too in full force. This is what a human nature is about, with the emotion of greed taking on. A real get rich quick attitude had made people pay hugely which followed by the Great Depression of the year 1930.

By the end of the year 1929, varied leading stocks were seen up surging in a dramatic fashion. This is what called a climax and another warning sign of trouble up ahead in the future for the market. But who cared? People were least concerned about the future tragic to happen, and were more interested in recovering their money, savings and most probably reputation.

The warning sign of trouble that was coming closer hit in the year 2010. The failure of some major financial institutions in the United States were the primary reasons for the global crisis that affected and resulted into the disasters of the prime European financial groups taking steep declining in the global market.

Some of the countries also put brief halt to their stock trading activities. The stock market 2010 was the worst that affected the economy globally and perhaps the longer than 1929 stock market crash.

During this time period, those who were impatient, inexperienced and fearful have overall experience a huge loss. It is always a wise idea to wait out this period which eventually will rise bearing good profits in the near future.

Kenneth Smith

Kenneth Smith lives in Adelaide, Australia and is full time trader. Kenneth offers you his many trading tips in his articles. All the information presented in his posts are based on extensive experience gleaned from years of working with many trading platforms.