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Written by Anthony Green
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Investors who analyze the company can better judge the value of the stock and profit from buying and selling it. Your greatest asset in stock investing is knowledge (and a little common sense). To succeed in the world of stock investing, keep in mind these key success factors:
- Analyze yourself. What do you want to accomplish with your stock investing? What are your investment goals?
- Know where to get information. The decisions you make about your money and what stocks to invest in require quality information.
- Understand why you want to invest in stocks. Are you seeking appreciation (capital gains) or income (dividends)?
- Do some research. Look at the company whose stock you’re considering to see whether it’s a profitable company worthy of your investment dollars.
- Choosing a winning stock also means that you choose a winning industry. You’ll frequently see stock prices of mediocre companies in “hot” industries rise higher and faster than solid companies in floundering industries. Therefore, choosing the industry is very important.
- Understand how the world affects your stock. Stocks succeed or fail in large part due to the environment in which they operate. Economics and politics make up that world, so you should know something about them.
- Understand and identify megatrends. Doing so makes it easier for you to make money. This edition spends more time and provides more resources helping you see the opportunities in emerging sectors and even avoid the problem areas.
- Use investing strategies like the pros do. In other words, how you go about investing can be just as important as what you invest in. Know techniques for investing to help you make more money from your stocks.
- Keep more of the money you earn. After all your great work in getting the right stocks and making the big bucks, you should know about keeping more of the fruits of your investing.
- Sometimes, what people tell you to do with stocks is not as revealing as what people are actually doing. This is why I like to look at company insiders before I buy or sell that particular stock.
Actually, these tips offers you valuable guidance on some essential aspect of the fantastic world of stocks. The knowledge you pick up and apply from these tips has been tested over nearly a century of stock picking. The investment experience of the past the good, the bad, and some of the ugly is here for your benefit. Use this information to make a lot of money. |
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Written by Anthony Green
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Economics. Double ugh! No, you aren’t required to understand “the inelasticity of demand aggregates” or “marginal utility”. But a working knowledge of basic economics is crucial to your success and proficiency as a stock investor. The stock market and the economy are joined at the hip. The good (or bad) things that happen to one have a direct effect on the other.
Getting the hang of the basic concepts
Alas, many investors get lost on basic economic concepts (as do some so called experts that you see on television). I owe my personal investing success to my status as a student of economics. Understanding basic economics helped me (and will help you) filter the financial news to separate relevant information from the irrelevant in order to make better investment decisions.
Be aware of these important economic concepts:
Supply and demand:
How can anyone possibly think about economics without thinking of the ageless concept of supply and demand? Supply and demand can be simply stated as the relationship between what’s available (the supply) and what people want and are willing to pay for (the demand). This equation is the main engine of economic activity and is extremely important for your stock investing analysis and decision-making process. I mean, do you really want to buy stock in a company that makes elephant-foot umbrella stands if you find out that the company has an oversupply and nobody wants to buy them anyway?
Cause and effect:
If you pick up a prominent news report and read, “Companies in the table industry are expecting plummeting sales,” do you rush out and invest in companies that sell chairs or manufacture tablecloths? Considering cause and effect is an exercise in logical thinking, and believe you me, logic is a major component of sound economic thought.
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