Most of new investors feel lost when they have to choose stocks they want to invest in. For this reason in this blog I will start talking about investment strategies to find good profitable stocks. I will show you the ways to find the best stock giving you great returns and will reveal factors, which help you to avoid bad ones.
First of all I want to emphasize that there are no strategies, which would work in all cases and all the time. If you believe that you will find a formula, which will give you one hundred percent success then forget it! This is clear when you understand that business is always a changing thing. It is impossible to put it in any formula or simply apply one strategy or another. Moreover, it is impossible to evaluate all factors. I would say more it is impossible to find all factors you want to measure. And finally while stocks are traded by humans there are many decisions influenced by emotions. You can’t predict other people’s emotions so you can’t predict the price of the stock.
The first step of investing is to choose stocks. If you think that it is not the key step in trading then think about Apple shares. The person who bought Apple stocks twenty years ago, and didn’t sell them till now, today has millions of dollars. On the other hand you could choose stocks which price remains the same or even smaller. So, one of the key points is to find small new companies having big potential to grow in future. Experienced investors look for niches, which are expected to grow up and buy stocks of companies working in this sphere. Going back to our example – twenty years ago computers and information technologies were unknown sphere for many investors. People who understood that computer is the future of the world and invested in such companies as Apple today have big profit. Read more details from the original source.
Most successful investors say that investment is not a science it is an art. They say that their best solutions were made not by logic but based on intuition. And intuition does not come by reading books or attending investment seminars, intuition comes with experience. It does not mean that you don’t have to study theory but it means that keep in mind that in trading market you can’t absolutely trust your logic and you must leave some space for your intuition. Checkout latest updates at http://smsfselfmanagedsuperfund.com.au/