Selecting Your Investing Strategy
Stock investing is considered as very complex by most people. However, it is not that difficult and it all depends on you whether it will be complicated or not.
Most people are discouraged from investing in stocks, since they consider that they will have to make complex analysis. They find it cumbersome the study of financial statements, different reports, spreadsheets and market analysis. All these are really needed in order to make good investment decisions but this analytical approach is not the only available alternative.
Many investors have failed despite the thorough researches and analysis. Thus, you should not be discouraged from investing if you lack the time and financial background. The following advices can be given for those of you who lack the knowledge or time to make thorough analysis.
Set Limits
If you are interested in a particular industry, select a particular sector that falls in this industry. After this concentrate your investments in the leaders of this sector. You should consider only market leaders. This is recommended since price leaders may quickly lose their positions and leave you with losses.
Invest in Growth Stocks
If you are a growth investor, then select industries that fall in this category. As simple as it may seem, try to focus on industries that have potential for growth, such as technology oriented companies. Try not to deviate from your objective and invest in a successful, but going nowhere company. In this way you are not only wasting time, but money as well.
Select Market Leaders
Market leaders are companies that hold a significant portion of the particular industry. You should select companies that are firmly established in their sector. They are hard to be removed from their position. An obvious example is Microsoft, which has well-established name and reputation. As a result of their dominance, it is hard for their competitors to remove them from the top. However, you should apply caution when selecting a market leader since no one is ensured from being replaced. An obvious example is GM, which 10 or 15 years ago was considered a market leader with strong potential.
Finally, no matter what strategy you select, it should strictly conform to your investing style and goals. You should feel comfortable with it and stick to it.
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- The Long-Term Scope of Stocks
- Investing According to Dow Jones Industrial Average
- Allocating for Investing Purposes
- Stock Trader vs Company Investor
- When to Buy and Sell Stocks
- Before You Buy Stocks
- Bull and Bear Market Strategies
- Electronic Trading vs Stock Exchange Trading Floor
- Long-Term Stock Investment vs Short-Term Trading
- Stock Market Prices and Buying Strategies
- Personal Reasons for Selling Stocks
- When to Sell a Stock
- Beating the Market Strategy
- Direct Stock Purchase Options
- Stock Portfolio Diversification
- Dogs of the Dow Investment Strategy
- Purchasing Your Company’s Stock
- DRP Types and Benefits
- Dogs of the Dow Performance
- Investment Strategy Types
- Common Stock Investing Strategies
- The Warren Buffett Way - Principals for Successful Investment
- Value Investing Basics
- Has the Time for Selling Stocks Come
- Dollar Cost Averaging Benefits
- Determining the Number of Stocks to be Included in Your Portfolio
- Ex-Dividend Date - Why It Matters
- Constructing a Successful Stock Purchase Plan
- Understanding After-Hours Trading
- Strategies to Deal with a Down Market
- Stock Market Day Trading
- Strategies to Deal with a Weak US Dollar
- Buying Stock on Margin
- Stock Price Forecast
- Stock Option Strategies
- SEC Order-Handling Rules
- Stock Portfolio Balance Maintenance Techniques
- Short Interest Ratio Monitoring
- Holding Your Securities: Physical Certificate
- Holding Your Securities: Street Name Registration
- Holding Your Securities: Direct Registration
- Management of Investment Decisions Through Stock Screens
- Direct Stock Purchase Plans
- Down Market and Discounted Stock Opportunities
- What Investors Need to Know about After-Hours Trading
- When to Apply Averaging Down
- What Investors Need to Know about Auto-Trading Programs
- Financial Analysts: NYSE and NSAD Rules and Disclosures
- Insider Trading Tracking
- Asset Allocation – Choosing the Best Allocation Strategy
- Investing in Equity-Indexed Annuities Explained
- The Pros and Cons of Exchange-Traded Funds
- Prepaid Tuition Plans versus College Savings Plans
- Characteristics of Variable Annuity Products
- Diversification of Assets
- Rebalancing Your Assets
- Cross-Market Trading Circuit Breakers
- Margin Requirements for Pattern Day Traders