Friday, January 25, 2013

What To Look For In The Market

       When researching the market for certain stocks, you don't have to just go off of what another investor says or the researchers say for your brokerage account, you can go off of your own thinking once you get the hang of it. There are some key statistics to look at to find successful stocks and funds. In my last article about "Short Term Investing" the key ratios to look at is how the company is producing right now. Does it make enough money to sustain a profit? And if it makes a lot of money, does it put more money into the company so it keeps ahead of the competition? The next key to look at is what about the company appeals to you? Is it the leadership? Is it the companies competitive advantage? Or does its product or service have potential in the future to be dominant? Also look for its stock charts and patterns. Key stock charts can hold some hints to what the future holds for the company. Certain patterns in the chart could help predict what could possibly happen next to the company. Although it is a risky tactic, there has been proven facts that say studying the stock charts can be a beneficial way to find certain stocks.
       The worst thing to do when looking for a stock is going off of what spam says. Don't get me wrong; reading respected authors and successful investors is a great way to widen your investment knowledge, but you have to realize that there is some spam out their that say they can offer you 1,000% in a 9 month span, and so use the rule; if it's too good to be true, it probably is. What you should look for in the markets today is certain trends that you think will bring you the most profit. For example, mobile devices including smart phones have been a trend ever since the first iPhone came out. Although popular trends that are lasting a long time can't hold their momentum forever. Hidden trends are tends to invest on. Trends like 3D printing is a great trend to invest on for the future. Even recreational marijuana is a trend to invest on. Medbox has soared in the last few months after Washington and Colorado past recreational marijuana laws. Different trends are hard to predict and making bad predictions can happen and so getting the feel for trends and when they slow down and when they speed up is a huge asset to have for investing.
       To sum it all up you might want to take the advice of top investors and famous writers but be careful who you trust. Be confident in the knowledge you have. Have your own investing style. But still have the basics down and trust the right people until you get the hang of it. And if you are already a pro then master your market reads so you can make most out of your profits. Invest with care.

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