Investment Fundamentals
So instead of listening to every cliché you hear it's best to stick to investment fundamentals.
Mainly because investment fundaments are flexible and are able to change to explain the situation you are in.
After all how many of us really understand what "run with the bulls" means? Even if you do know what it means, are you able to apply it to your current investment query? How many of us would know what to do with information like, "buy on bad news, sell on good news" or "buy high, sell low"? And again, even if you understand the cliché and the ideas behind it - can you use these rules in a crisis? Unless you spend all day watching and interpreting the stocks, you probably won't be able to explain your investment queries with clichés.
Simply because you need to do some research to understand where your stocks have been and where they are going.
Clichés do however have some truth to them.
Lets look at "Buy on bad news, sell on good news" as an example.
"Buy on bad news, sell on good news" is essentially quite true.
Wall Street news changes and moves the market.
Regardless of whether the news is bad or good, talk about corporations will either put their stock up or down.
But serious investors and the market aren't as fickle as the news.
Yes - once some big news hits you may experience some rocking in the boat so to speak.
But contrary to the cliché, changes in the market of this nature rarely last and even more rarely actually happen when we are told they will.
So by the time you know about some news and it's affect on your stock you have missed the boat.
In order to have long and successful investment career you need to take in the oversimplified sayings, but learn to pay more attention to your own research and adherence to investment fundamentals.
So let's look at the saying ("Buy on bad news, sell on good news") and Investment Fundamentals together.
In order to take advantage of movements in the market, whether they are cause by news, global events or gossip, you have to be prepared.
Now don't let this turn you off, a little bit of hard work will almost certainly pay off and if you apply Investment Fundamentals you will be one step ahead of the masses.
Now before you start wondering what Investment Fundamentals are and running for the hills, wait! It's not as complicated as it might sound.
Investment fundamentals include charting, fundamental analysis of your target companies and technical analysis of their stock position.
Really a little bit of time and effort will help you understand your stocks much better.
Take a look at this possibility: Medical Expenses: The market has been essentially quite calm recently; let say for the sake of our example there has been a slow upward trend, which has got you interested.
You have enough capital to invest and have been poking around in the business section of late.
Now it's time to put your Investment Fundamentals at work.
Most of your colleagues and friends have been spouting on about their safe investments in the auto industry.
Most of them have shares in the major car companies and you have been thinking about the same thing.
The large auto companies have just reported generous quarterlies and their earnings estimates have been making your mouth water.
However you have also been eyeing off a medical research company who are apparently very close to releasing an extremely profitable product within the next quarter.
Both investments have their ups and downs.
The safe auto companies are just that - they are safe and by all indications will make continuous profits, all be it not overly large ones.
The medical research company does however have possibility of sky rocketing, which if you are able to get on at the bottom floor, will possibly, double (or maybe triple) your money.
But these riskier investments come with their risks.
After looking over your stock portfolio, you make the decision that you have enough long term/safe investments and it's time to take a risk.
So you decide on the medical company.
Then when your least expecting it the news is awash of rumors of medical companies passing off European inventions as their own.
The company you invested in hasn't been mentioned, but the entire medical research world is under suspicion and the entire stock sector tumbles, including your company.
You have however been quite diligent with your research and look at your work and decide to stick with them.
You happily take advantage of the temporary dip, feeling like you have made a good deal.
This explain sees the trader (you) took the time to do some research and most importantly they followed the investment fundamentals.
The fundamental and technical analysis paid off.
Mainly because investment fundaments are flexible and are able to change to explain the situation you are in.
After all how many of us really understand what "run with the bulls" means? Even if you do know what it means, are you able to apply it to your current investment query? How many of us would know what to do with information like, "buy on bad news, sell on good news" or "buy high, sell low"? And again, even if you understand the cliché and the ideas behind it - can you use these rules in a crisis? Unless you spend all day watching and interpreting the stocks, you probably won't be able to explain your investment queries with clichés.
Simply because you need to do some research to understand where your stocks have been and where they are going.
Clichés do however have some truth to them.
Lets look at "Buy on bad news, sell on good news" as an example.
"Buy on bad news, sell on good news" is essentially quite true.
Wall Street news changes and moves the market.
Regardless of whether the news is bad or good, talk about corporations will either put their stock up or down.
But serious investors and the market aren't as fickle as the news.
Yes - once some big news hits you may experience some rocking in the boat so to speak.
But contrary to the cliché, changes in the market of this nature rarely last and even more rarely actually happen when we are told they will.
So by the time you know about some news and it's affect on your stock you have missed the boat.
In order to have long and successful investment career you need to take in the oversimplified sayings, but learn to pay more attention to your own research and adherence to investment fundamentals.
So let's look at the saying ("Buy on bad news, sell on good news") and Investment Fundamentals together.
In order to take advantage of movements in the market, whether they are cause by news, global events or gossip, you have to be prepared.
Now don't let this turn you off, a little bit of hard work will almost certainly pay off and if you apply Investment Fundamentals you will be one step ahead of the masses.
Now before you start wondering what Investment Fundamentals are and running for the hills, wait! It's not as complicated as it might sound.
Investment fundamentals include charting, fundamental analysis of your target companies and technical analysis of their stock position.
Really a little bit of time and effort will help you understand your stocks much better.
Take a look at this possibility: Medical Expenses: The market has been essentially quite calm recently; let say for the sake of our example there has been a slow upward trend, which has got you interested.
You have enough capital to invest and have been poking around in the business section of late.
Now it's time to put your Investment Fundamentals at work.
Most of your colleagues and friends have been spouting on about their safe investments in the auto industry.
Most of them have shares in the major car companies and you have been thinking about the same thing.
The large auto companies have just reported generous quarterlies and their earnings estimates have been making your mouth water.
However you have also been eyeing off a medical research company who are apparently very close to releasing an extremely profitable product within the next quarter.
Both investments have their ups and downs.
The safe auto companies are just that - they are safe and by all indications will make continuous profits, all be it not overly large ones.
The medical research company does however have possibility of sky rocketing, which if you are able to get on at the bottom floor, will possibly, double (or maybe triple) your money.
But these riskier investments come with their risks.
After looking over your stock portfolio, you make the decision that you have enough long term/safe investments and it's time to take a risk.
So you decide on the medical company.
Then when your least expecting it the news is awash of rumors of medical companies passing off European inventions as their own.
The company you invested in hasn't been mentioned, but the entire medical research world is under suspicion and the entire stock sector tumbles, including your company.
You have however been quite diligent with your research and look at your work and decide to stick with them.
You happily take advantage of the temporary dip, feeling like you have made a good deal.
This explain sees the trader (you) took the time to do some research and most importantly they followed the investment fundamentals.
The fundamental and technical analysis paid off.
Source...