Unrealised Points to Keep in Mind While Investing in Stocks
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Cora Marshall
May 29, 2010, 4:23:18 PM5/29/10
to London Stock Exchange
Below is the best approach which I consider for investing or holding
positions with stocks.
Don't follow advisory services. They are not infallible.
Be cautious with brokers' advice. They can be wrong.
Ignore market sayings, no matter how ancient and revered..
Don't trade over the counter stocks- trade only listed stocks, there
will be always a buyer for it.
Don't listen to rumors, no matter how well founded they may appear.
The fundamental approach (long term positions) works better than
gambling (short term or intraday). Hold on to one rising stock for
longer period , rather juggle with a dozen stocks for shorter period.
List the stocks as below before obtaining positions:
Stocks with top quality rating.
Stocks the experts like.
Stocks selling below book value.
Stocks with strong cash position.
Stocks that have never cut their dividend.
The stocks belonging to the same industry have the tendency to move
together in the market, either up or down. Try to find through
fundamental analysis of
the strongest industry group.
the strongest company within that industry group.
Buy the stock of that strongest company and hold on to it, for such an
ideal stock must rise. Whenever a stock started to behave better than
the market generally, immediately look at the behavior of its
brothers- stocks of the same industry group. If found that its
brothers also behaved well, look for the head of the family-the stock
that was acting best, the leader. If you could not make money with the
leader then certainly you will not make money with the others.
Start compiling earnings of whole industry groups finance, metals,
oils, auto, consumer etc., compare their past earnings with their
present earnings. Then compare these earnings with the earnings of
other industry groups. Carefully evaluate their profit margins, their
price-earnings ratios and their capitalization.
100% Automated Artificial Intelligence Stock Picking Software -
http://stktourw.blogspot.com/#
positions with stocks.
Don't follow advisory services. They are not infallible.
Be cautious with brokers' advice. They can be wrong.
Ignore market sayings, no matter how ancient and revered..
Don't trade over the counter stocks- trade only listed stocks, there
will be always a buyer for it.
Don't listen to rumors, no matter how well founded they may appear.
The fundamental approach (long term positions) works better than
gambling (short term or intraday). Hold on to one rising stock for
longer period , rather juggle with a dozen stocks for shorter period.
List the stocks as below before obtaining positions:
Stocks with top quality rating.
Stocks the experts like.
Stocks selling below book value.
Stocks with strong cash position.
Stocks that have never cut their dividend.
The stocks belonging to the same industry have the tendency to move
together in the market, either up or down. Try to find through
fundamental analysis of
the strongest industry group.
the strongest company within that industry group.
Buy the stock of that strongest company and hold on to it, for such an
ideal stock must rise. Whenever a stock started to behave better than
the market generally, immediately look at the behavior of its
brothers- stocks of the same industry group. If found that its
brothers also behaved well, look for the head of the family-the stock
that was acting best, the leader. If you could not make money with the
leader then certainly you will not make money with the others.
Start compiling earnings of whole industry groups finance, metals,
oils, auto, consumer etc., compare their past earnings with their
present earnings. Then compare these earnings with the earnings of
other industry groups. Carefully evaluate their profit margins, their
price-earnings ratios and their capitalization.
100% Automated Artificial Intelligence Stock Picking Software -
http://stktourw.blogspot.com/#
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