Monday, October 29, 2012

supply/demand



supply/demand is how much people are buying something compared to how much people are selling. If people buy more than is being sold, the price goes up, and vice versa. This applies to stocks too, and is why volume is one of the most important graphs to look at before buying or selling.

Sunday, October 28, 2012

What is good for the economy?

The United States dollar has seen extreme deflation for the past 4 weeks. Bank interest rates are low. Which one is good and which one is bad? The answer is the opposite of what most people would think.

Let's start off with the deflation- If people are gaining value in their money, they will put off making large purchases. This lowers the real estate market as well as the vehicle industry. Since cashflow might be lower in the economy, the unemployment rates are going to stay where they are because of manufacturing not hiring from the deflation. On the flipside the bank rates are low, which means more small businesses are growing faster from paying off their small debt. This creates more jobs and cashflow. Hopefully this keeps up until the unemployment gets to around the previous average of 5-7%. 

Please post a question for another post below.

Starting off


Hello, my name is Grant, I'm 10 years old, and for the past 4 years, I've learned the ins and outs of of moneymaking. I am willing to answer questions that some of you may have, and am still (and always will be) learning myself. We can all be rich, and before this blog makes itself popular, it will be good to have you tell others with a dream of being financially free.

This is a post, and there's no point in wasting space, so here's a story-----
One day I was sitting in the car, zooming by the lowe's and a lot of people were buying plants. I thought of the profits I could make from selling plants, so I bought some seeds, and grew the plants. After some clever marketing and word traveling through facebook, I had just built a business. The next year I did the same thing, but I didn't spend a second on marketing, and I make just as much money! This shows that if it's a good product, you don't have to market for long. I did old-school methods of marketing like door to door and fliers, and to the date of posting- I have made $450 off of grant's plants. People wanted it, people got it, I got money :).

Reply to this post with any questions you may have.