Well, when you look at the VIX or stock market volatility Index it is just amazing how much it bounces around, and often for no apparent reason. Sure, you can come up with reasons such as events around the world things like China lowering their interest rates for their banks, Greece debt, the Fed chairman’s latest speech, or the banks in Spain severely challenged for liquidity. Nevertheless, when it comes right down to it the technical analysts are usually right, most of the time, and they don’t even need to consider what’s happening in the real world.

Still, when you step back and look at the jagged line of the stock market, or any given stock, it looks like a giant gambling casino, and some analysts have said that the stock market’s job is to redistribute wealth, and leave the debris for the fishes, those are smalltime investors like you and I. but if that is the case, then why play? The other day I was talking to a financial planner and I asked them if they were a casino consultant or really in the financial planning business. They laughed, knew exactly what I was talking about, and told me that; “sometimes I feel like that.”

They also came up with another funny line, this might be something you should see at the end of a financial commercial on the CNBC morning stock market report; “Where we measure your financial success one day at a time.” And really isn’t that about how a gambler thinks, up one day and down the next – or how about someone that is going through Alcoholics Anonymous, that whole; “one day at a time,” thing.

Indeed, all this brings up another point – if people can’t trust the stock market as a place to save for their retirement, or allow their money to grow then what can they trust? Is there any stability at all? Why hire a financial planner, investment broker, or a stock market trader to help you with your money, if the chances are they will either lose it, or make a little bit in fees and commissions, but you won’t gain very much in the end – except more gray hair?

There used to be an old chart that financial planners used to show that if you started out in the 1930s, 40s, 50s, 60s, and bought stocks of major blue-chip companies, then today with the rise in the stock market over time, you would be able to retire wealthy. But if we keep having financial crisis such as the S&L crisis, the 1987 stock market crash, the dot-com bubble burst, and the housing bubble crash taking out a decade of gains, then in essence we’re just kidding ourselves, it’s not a good way to invest your money any more than the local casino might be. Indeed I hope you will please consider all this and think on.

We all know why stock markets were created in the United States. They were created to help capitalize American businesses and industry. They were never meant to be a gambling casino, or manipulated in the way that they are now. Today we have high-frequency trading which make trades in microseconds, they might buy a stock, and sell it within 2 seconds, and then trade it three more times in the next 3 to 5 seconds. Obviously if you are buying and selling stocks at home on your computer, or doing a little personal investing, you can’t compete.

One could say at that point it’s an insider’s game, and those computer systems making the trades are literally in the next room, or in the basement or the building next door to the stock exchange, needless to say those computer systems making those trades are quite a bit closer than the starting point of your computer at home. Are you beginning to see my point?

Meanwhile artificially intelligent software programs with sophisticated algorithms are making the trade, no human is determining when to buy or sell. However, these computers don’t have any skin in the game, and the software program is treating it like a game, and it is really doesn’t matter much to the silicon chip. Those who own these systems, well, their only goal is to get the advantage, and that leaves all of us with less than an advantage.

It seems obvious that the SEC is over regulating stock markets, but it doesn’t appear that they are regulating the correct things. In the first week of August 2011 the European stock markets realized that the radical gyrations and volatility was not being caused by human traders, but rather high-frequency traders, and naked short sellers. Therefore many of the nations determined that it was time to put a moratorium on short-selling. After all, if you’re trying to fund and capitalize your businesses, the last thing you want is people making money destroying them.

Another huge problem we have in our stock market, and with the SEC is that they are making huge requirements of financial planners, but the wire houses seem to get away with murder. Much of this has to do with politics in Washington DC, strong Wall Street lobbyists, and we even noted that Frank Dodd’s financial law that went into effect seems to give a huge edge to investment banks, and banks which are too big to fail. Some of these banks now have set up high-frequency trading rooms. And they make billions of dollars when the market is under high volatility duress.

Meanwhile, many smalltime investors who have their pensions and retirement accounts in the stocks, find their wealth is redistributed to those who are controlling the game, and the regulators sit around watching, and wondering what they should do about it. We have a problem with our stock markets, and they are no longer serving our will, and we’re opening ourselves up to financial terrorism, or nation-state sponsored economic attacks. Indeed I hope you will please consider all this and look out for the little guy.

The kind of jargon that is used by the stock market professional is often incomprehensible and very daunting to the newcomer in the field. But if you are getting into stock trading, it would a good time for you to start learning so that you don’t get left behind. Understanding stock market terms is very important if you are to succeed at trading, but thankfully, it is not a very difficult task.

One of the most commonly heard terms is about the stock market going ‘bearish’. This basically refers to a time when the market is beginning to slide and is likely to experience a fall. The opposite of this-when the market is doing well and is expected to keep rising-is called a ‘bullish’ market situation. A bullish market is supposed to be enthusiastic, with scope for quick profits, while a bearish market is considered cynical and racked by mutual suspicion. Simple as that! Now that you know the bulls and bears of the stock market, you should know what a ‘writer’ means in stock market jargon. A writer is not the genius artist of the Renaissance mode, but rather one who sells a stock option. Opposite to the writer is the one who buys the options, and he is called, quite simply, the ‘taker’. So, as you can see, it is not such a difficult task understanding stock market terms-a lot of it is just common sense.

Another terms that often comes up in stock market terminology is ‘leverage’. What ‘leverage’ means is basically the ability of a stock to make a large profit by putting in a small sum of money. This is an important term in knowing whether you stock is doing well or not. Another terminology you need to be familiar with is what is called a margin loan. A margin loan allows you to borrow funds so that you can buy more shares. These stocks then form your security and loan ratio. In the margin call, the borrower can ask for extra funds as security in case of a fall in the value of his stocks.

Stocks and shares are what companies put on the market for you to buy. On these stocks, the company gives you a dividend twice a year. Many people also choose to reinvest their dividends in stocks so that it can generate its own money at a pace faster than in the bank.

Stock market terms are multiplying with every passing day and you need to learn something new everyday to stay up to date on new developments. A knowledge of these terms and how they work is essential to succeeding on the stock market. You take some time understanding stock market terms, or you may end up making big mistakes and losing big money. So, in-depth knowledge is an integral part of investing wisely, making gains and getting rich. The rest won’t happen unless you know your way around the market. So, take your time and inform yourself and before long, you will see the dividends of your efforts show up in your bank account