เรื่อง: High Rated Stock Market Trends FastTip#86
 
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My Name: FrankJScott ออฟไลน์
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05 พ.ย. 21, 21:43:03น.
5 Markets Herald Important Tips To Invest In Stocks
 
It's easy to buy stocks. It's not hard to choose companies that beat the market for stocks. This is difficult for most people, and so you're seeking tips on investing in stocks. The below strategies courtesy of Markets Herald will deliver tried-and-true rules and strategies for investing in the stock market.
 

 
1. Check your emotions before you go
 
"Successful investment doesn't depend on the ability of an individual... the thing you need is the grit and determination to be able to resist the desires of others that can lead them into financial difficulties." Warren Buffett, chairman and CEO of Berkshire Hathaway is an example of this wisdom and an excellent role example for investors seeking long-term, market-beating returns on their wealth building investments.
 
Before we start Here's a helpful investment tip: We recommend that you don't put over 10% in individual stocks. The rest should be invested in low-cost mutual funds which are diversified. It is recommended not to invest any money in stocks for the next five years. Buffett stated that investors should not let their minds but their guts drive their investing decisions. Overactive trading caused by emotions is one way that investors could harm their portfolio's performance.
 
2. Do not pick ticker symbols. Instead, look for businesses
It's easy to overlook that the alphabet soup of stock quotes appearing at the bottom of each CNBC broadcast is actually a sign of business. Stock picking isn't an abstract idea. Don't forgetthat holding a share of a company's stock a way to become a part of the company.
 
"Remember that owning a part of a business makes you part-owner of that company."
 
Screening potential business partners will bring you a wealth of data. But it's easier to home to the relevant information when you wear a "business buyer" hat. You want to know about how the business is run and how it competes, its longer-term outlook and if it's bringing something fresh to the portfolio.
 

 
3. Prepare for the worst in panic.
Some investors are enticed by the urge to alter the value of their stocks. The common error in investing of investing in high-quality stocks and selling them cheap is often made when you are caught up in the rush. Journaling can be a useful tool. Record what makes each stock in the portfolio worthy of commitment. Once you've got this information, write down the reasons that could justify splitting. Let's look at this example:
 
Why I'm buying: Point out what you like about the business and the opportunities you see for the future. What do you expect from the company? What are your top priorities and what benchmarks are you using to gauge the company's progress. You must identify potential pitfalls and note which ones can be game changers and which are signs of a temporary setback.
 
What would cause me to sell? Create an investment plan outlining the reasons you should sell the shares. We're not talking about the price of stocks particularly not in the short-term, but fundamental changes to the company which affect its capacity to expand over the long run. Examples are: A significant customer is lost and the CEO shifts direction and a new competitor appears or your investment strategy is not realized after a reasonable period of.
 
4. Start building positions gradually
Timing is not the investor's greatest friend. Stocks are purchased by investors who expect to be and be rewarded with an increase in share price and dividends. -- for years, or even for decades. This also means that you can purchase a slow-moving product. Three buying strategies which will reduce your volatility.
 
Dollar-cost average : It sounds complicated , but it's actually not. Dollar-cost averaging refers to investing a certain amount of money on a regular basis like once a month or once a week. This amount can be used to buy more shares in the event that the price drops and less shares if it increases. However, overall it is equal to the amount you pay. Some online brokerage firms let investors set up an automated investment schedule.
 
Buy three times: "Buying in threes" is a form of dollar-cost average. It will help you prevent the painful disappointment of getting poor results right from the beginning. Divide the amount of money you want to invest in by three. Choose three points from which to buy shares. They can be scheduled at regular intervals (e.g. every quarter or month) or based purely on company performance. For example, you could purchase shares before the release of a new product and then transfer the remaining portion of your cash to it if it's successful.
 
The "basket": It's hard to decide which business is going to win over the long haul. You can purchase the entire basket! You don't need to select "the one" when you purchase a basket of stocks. Being able to have a stake in all of the companies that you have analyzed will ensure that you don't get in the dark if company goes under. It is also possible to use any gains from the company that is the winner to offset any losses. This strategy can also help you to determine which company "the one to beat" and allow you to double your position.
 

 
5. Do not engage in excessive activity.
A good idea is to review your stock at least once every quarter. This includes the quarterly reports you receive. It's difficult to not look at the scoreboard. This can cause you to overreact to short-term things. It's possible to focus more on the share price than on the value of the company, and feel like you have to take action when none is required.
 
Discover what caused a dramatic price increase in one of the stocks you own. Is your stock affected by collateral damages? Does there appear to be any shift in the company's underlying business? Does it have a significant effect on your long-term future plans?
 
It's not often that quick-witted noise (blaring headlines, and price swings) has any bearing on the long-term performance of a carefully selected business. How investors respond to noise is what really matters. Your investing journal can serve as a useful guide to staying calm during the inevitable ups, downs and changes that stock investing can bring.