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Contrarian Strategies: Selecting Small Capitalization Stocks
INTRODUCTION
Contrarian investors are often ridiculed by the rest of the investment community for their stubborn, illogical view on the stock market. When everyone else is running for the sidelines, contrarians are buying and when the rest of Wall...
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PARACHUTE INVESTING
PARACHUTE INVESTING by AL THOMAS Ever jumped out of an airplane? It’s OK if you have on a parachute. Pretty dumb if you don’t. Every buy any stocks, mutual funds or Exchange Traded Funds? It’s OK if you know how much you are willing to...
Staying Safe In A High Risk Market
Did you know that 80% of the price movement in a stock or a mutual fund is determined by the overall market conditions and by the company's sector? This is the reason we use the top-down approach in managing your money. We look at the market...
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Buy, Sell or Hold?
What should I do? My investments are down and I don't know what to do? Should I be buying now, selling or waiting the market out? What are the successful investors doing? Here's a few ideas that could fatten your portfolio and give you a greater...
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Getting Acquainted With The Stock Market Trading System
If you are a beginner in the stock market, you should be
familiar with how the system works. It is important that you
know what you are getting into.
The trading system, in definition, is the choice you would make
on what method to use in entering or buying and exiting or
selling the stocks. Choosing the trading system is the most
vital part for your money's success.
In choosing a trading system, it is important to research and
find a low-risk and high-opportunity companies when buying
stocks. Knowing the fundamentals in the price signals and when
to sell your stocks when losses occur, would maintain your
money's growth.
The trading system has been divided into several groups for the
investors to know which company they would enter shares with.
1) Blue chips. This refers to the shares of the huge companies.
These companies have a trace of profit progression and usually
have at least 4 billion dollars in returns yearly. Although
entering in to blue chips would provide a large capital in the
investor's part, the payment from the shares would be consistent
- the dividend is in the middle of winning and losing shares.
2) Growth stocks. This refers to the companies that grow
quickly. The management of these companies invests the profits
from the stock for the development of their company. Companies
with growth stocks seldom pay dividends to
investors. And if
they do, the payments are lower than other companies.
3) Income stocks. This refers to the companies' stocks that have
high earnings. Income stocks are stable and pay a large dividend
or payment to the shareholders. These kinds of shares usually
make use of mutual funds for senior citizen plans.
4) Defensive stocks. This refers to the companies' stocks that
always remain stable even if the market falls. These are the
kinds of stocks that could easily reclaim its place in the
market when it losses stocks. Since these companies defend their
stocks, the investor would lessen the risk in losing money.
Defensive stocks are always suitable to purchase because it is
suitable in an unstable market and when the economy suddenly
falls.
But before entering into one of these categories, one should
analyze the risks and dividends of the company. Plus, you should
think outside the box and cautiously examine the company's
accounting flow, the distribution of the profits to all
investors, and other profile of the company.
When you have established the trust on a company's stock, it
would be easy for you to buy or sell in the trading system.
About the author:
Find out more about stocks
and shares at http://stocksandshares.us
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