Debt Spiral refers to a cycle of debt that does not shrink in size and keeps on increasing spirally with passage of time.

Following is the scenario that takes place in a debt spiral for an individual:

The initial debt amount exceeds the income of the person and thus he is unable to repay the amount. As a result, the debt amount keeps on accumulating and the person has to take another debt to pay the initial one. Since the income remains fixed, the debt amount relatively increases thereby widening the gap between debt and income. In this manner, the debt cycle keeps on expanding spirally and the burden on the individual becomes more and more.

If you can relate the situation to your economic condition then you might be suffering from this problem and steps should be taken to get out of it at the earliest possible. If required, one should not hesitate from taking help from debt consolidators who can suggest ways to bring your debt amount to zero without posing threat to your credit score.

Generally, the trends of the stock market can alter in two ways – upward or downward. When the industry moves in the upward direction earning more profits and revenue then it is known as bull market. On the contrary, when there is seen a downfall in the industry then it is called bear market. Both these terms form the base for defining trends in the stock market and every professional in the industry should learn to use this jargon on a regular basis.

Apart from bull market and bear market, terms are used for describing the time frame for which a particular trend persisted in the industry. For instance, if the industry experiences profits over a long time period then it is known as secular bull market. The situation of United States Stock Market from 1983 to 2000 is an example of secular bull market only. Just opposite to secular market, economists have defined secondary market trend. In a secondary market, the changes taking place are for a very short frame of time.

In between both these types of trends, lie primary market trend. A change in the market is defined as primary only when it lasts for one year or more. Another feature that differentiates this market trend from others is it results as a combined support from not just a couple of sectors but almost every sector. Depending on the fact whether there is an upward or downward movement, primary market trend is further subdivided into primary bull market and primary bear market.

The first type of recession defined by economists is known as V-shaped recession. In this type of recession, economic activities slow down to a great extent but the period of recession is small. A short phase of economic slowdown implies the economy would be able to recover on an early note.

Another important type of recession is called U-type recession. This recession type is very much similar to V-shaped recession except it stays for a longer period. Some economists even describe the U-type recession as bathtub because once you enter it, you stay there for a longer time. In this type of economic slowdown, it is difficult to predict for how long the slowdown phase would continue.

W-type recession in an economy signifies instability as here the economy keeps falling and emerging from recession at frequent intervals.

The last major type of economic slowdown is called L-shaped recession. Here, a sharp fall takes place in an economy and it continues for many years. An example of this type of economic slowdown is the late-2000 recession of the United States of America. This recession caused a spiky decline in the economic conditions of the United States of America after the recession in 1930.

One very common problem seen with beginners in the stock market is they buy and sell stocks very frequently. The moment they see a little rise in the value of a stock they end up buying it. This regular act of buying and selling stocks many times incurs heavy loss to the investor rather than profits. Thus, the first word of caution for newbie in the field of stock investing is to get involved in less sale and purchase of stocks.

Generally, investors who are new to the world of stock trading are not able to analyze the long term affects of their investments. Many a times, they even overlook a long term gain over smaller value profits. So, if you really wish to make good amount of profits then try to be patient and analyze the profit earned in a long run. Another problem associated with recurrent buying/selling of stocks is that you have to pay large amount of money to the broker.

Lastly, regular selling & purchasing of stocks might not help the investor in saving money on taxes. So, instead of hastening in the stock market, investors should take decisions calmly after evaluating pros and cons.

David began his career in investment banking at a junior level with Fidelity Investments and Research. After serving at the position of junior investment banker for three years, he was promoted to the position of senior investment banker.  This leap in his banking career is a combined result of his hard work, intelligence, strong analytical skills and zeal to reach the top.

Presently, David is responsible for handling the funds for the leading clients of Fidelity Investment and Research. David’s industry acumen helps him in taking the best decision most of the times (if not always) for his esteemed clients. Since he has proved his credibility as an investment banker by maximizing returns on clients’ funds, most of the individuals seek David’s advice.

Doubtlessly, as a professional, David is an asset for the entire investment banking sector as he is always seen sharing his views on market trends. Also, he shares some of the tips with newbie in the industry so that they can also do justice to their profession. Presently, David is writing a book covering different aspects of investment banking and surely it would be highly enlightening for professionals, traders, bankers and organizations.