Short Term Investing Is Essential

           Short term investing isn't the most popular way to invest among old school investors although their is some up side to investing short term. Investing short term is a specialty of Alleyway Investing and is something that I personally favorite over long term investing. The most important reason is because short term investing is so much more flexible. You can make money in different markets. If the market is unstable and you can still edge out an advantage and make investing gains in the markets. Now there is some investors that short term investing may not be for. For example, many investors that are looking to save for retirement don't want to keep moving around their money, and want to let it be. If so, short term investing isn't so worth it. But short term investing is still essential. Its a great way to keep a careful eye on the market, do some ratios and research some stocks, own them for up to a year and do it all over again. Short term investing can turn some good profits rather quickly. It is good because you don't have to think too much about the far future and just worry about what is going to happen in the next couple of months.
           First, you'll have to figure out some short term investing ratios and how to research a stock, you have to start with the basics. The principle ratios to look at (other than P/E ratios) have to be about how the company is doing right now, not in the future, but at this moment. You start by its assets to liability ratio, a ratio determining how its cash flow, inventory, liquidity, and basic income is related to its liability costs like employee fees, cash outflows, inventory costs, and other expenses. It can get more complex than that, but focusing on its assets and liabilities might be the main focus. A ratio that is more than one means that its assets is greater than its liabilities  a good thing right? Well it really matters about which sector you go into; sectors like financials compared to retailers would have different ratios, start by averaging out the ratios for top companies to get an average for each sector. Also figure out its capable assets. This means that assets that are liquid, or capable of being moved around within hours or days. Instead of assets that are long term, like a building that could take months or years to sell. The more assets that are liquid the better, although if it has a ginormous ratio number and has a lot of liquid capital then that means that should be money invested into the company. As complex as these ratios get, there are many more, but figuring out these ratios and researching a stock is essential in short term investing, and can be a great way to turn a profit. Even if you are not a big short term investing fan, then figuring out a companies financial health is still essential to see if the company can do well in the short term, because if it cannot do well in the short term, it may be hard for it to do well in the long term. And these ratios can help you do that. Do your research and invest with care.