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Posted by jeflin on August 8, 2008, 11:34 am
wrote:
> In a volatile market such as stock trading, there is no sure fire way
> of continually posting growths in profits for any investor year after
> year, stock after stock. It is statistically impossible.
>
> This is true simply because of the unpredictability of the market. The
> lack of an accurate prediction tool and the lack of a consistent trend
> for any stock only compounds the problem.
>
> The greatest myth about being successful in trading is the need for
> the investor to be able to predict the stock market=92s movements.
> People incorrectly assume that stocks bounce around the range forever
> and therefore they must be able to predict a trend in the movement in
> order buy stocks during their lowest value and sell them at their
> highest peaks.
>
> This is grossly incorrect.
>
> The best way to make money in the stock market is to avoid approaches
> that rely on stock market predictions.
>
> If you look at it, a conscious action of predicting the market is no
> better than buying a stock and holding on to it for a long period.
>
> The reason behind this is because there is simply no way to predict
> stock performance. There is no person who can accurately predict stock
> movement consistently, all of the time.
>
> An analyst may be able to predict a stock=92s performance in the
> immediate future but rarely in the long term. The analyst may predict
> next quarter=92s performance, or even for the entire year. But it is
> statistically impossible to predict stock movement correctly quarter
> after quarter, year after year.
>
> A good way to do trading is to formulate your own strategy. Consider
> the following:
>
> * Take time to do a careful evaluation of the history of a stock=92s
> performance. * Keep up with the latest news and stock market reports *
> Study the structure of successful mutual funds to see how their
> investment strategy is done. You can choose these funds to choose the
> best they are composed of and build your own portfolio from them. * It
> is best to invest in a stock that has good dividend and growth. *
> Invest in stocks that have a history of progressive gain. * Evaluate
> the type of sector your company deals with.
>
> Again, there is no specific and proven strategy that consistently
> reaps profit for any investor. Stocks are volatile and any strategy
> that proves reliable today may prove entirely worthless tomorrow.
>
> The best way is to study several stocks and consider them as long-term
> investments. These may take you longer before you post any profit, but
> it beats putting all of your eggs in one basket.
>
> extract from :http://www.myinvestmentadvice.info
>
> Lastest Article: "Looking for a Turnaround - Why Some Succeed Where
> Others Fail"
>
> Do visit:http://www.stocktrading.tk
>
> Good luck in your trade
>
> Ezycash
>
> note: Some Articles will be deleted or re-posted in the Archives page
> tks.
There are many best ways, but the first way will be to understand
annual reports, which many don't.
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