Stock Investing Tips - Stay Focused
When investing in a stock it is easy to become distracted and lose focus. Maybe your stock has been going down recently and you are afraid of losing any more money. Maybe you have found another stock you are interested in buying, but you need to sell your other stock first. Maybe you don't like the ups and downs associated with investing in an individual stock. While all of these scenarios are natural feelings, you need to go back to the reason you first invested in a stock and ask yourself these 5 questions. 1. Is the money I invested "extra" money that I can afford to lose or at least hold on to through the rough times? 2. Do I have additional money to invest if another opportunity arises or am I locked into one stock? 3. Would I still buy the stock today? 4. Am I able to tolerate the volatile nature of individual stocks or should I consider investing in something that has less volatile price movements? 5. What do I hope to accomplish through investing? If you are investing money you are going to need soon, you should not be buying stock. Stocks can be very volatile, especially in the short term, so only risk money you can live without. Secondly, make sure you do not overextend yourself in one stock. It may be a great stock, but unforeseen events happen all the time and it is bummer when it happens to your stock. If you see an opportunity to purchase another stock, there is no need to rush. If you think a stock is a good buy today, chances are it will still be a good buy a few weeks or a few months later. If your stock has been declining recently, then you need to determine whether something has changed fundamentally in your stock. It may just be a short term price fluctuation rather than the financial condition of the stock. If you bought the stock before it went down and nothing fundamentally has changed, then why would you sell the stock now? Some individuals may not be well suited for investing in individual stocks. At some point, one of your stocks will go down significantly. How will you respond to that? If you can't handle the volatility, consider investing in mutual funds or something with less daily price movements. Finally, if you are investing for retirement or for a college education, don't worry about checking your stocks every day. Over time, stocks tend to reflect the financial strength of the company. However, many factors can influence the day to day stock price. Stay focused and remember why you are investing. Alan Reisch has a degree in finance and has worked as a licensed broker for two large investment firms. He recently started http://www.1stock1.com a free investment information website. |
Other Trading Tips Articles
Major US Trade Issue is Japan, not China The 2005 trade numbers released last Friday are sure to get the China trade hawks riled up. But if you look behind the numbers, the trade imbalance with Japan is likely larger than China.According to the trade statistics, the trade deficit with China was $201 billion or 28% of America’s total deficit of $726 billion. No doubt these trade ...10 Budgeting Tips for Business People and Small Companies It is possible for small companies and individual business people to cut costs without sacrificing quality. Keep these 10 budgeting tips in mind when purchasing goods and services.1.) Buy in bulk, but compare prices.Sam's Club and Costco cater to small businesses and have good deals on bulk-packaged items. Know the sale pric ...Online Currency Trading – Why It's Harder Today than Ever Before There are many who believe that the markets today, require the same skills as 30 years ago - but today’s markets are actually much harder to trade.It may surprise you, but markets have changed and are now harder to trade - but if you know why, you can increase your profits dramatically.If you don’t already understand why online cur ...How to Make Money By Trading Shares Trading in shares of different companies presents a unique opportunity to make money within a short time. But there are some important points, which have to be considered before start trading in these shares.1. Research about the company before buying a shareA thorough research is required to be carried out before ...Business Owner Are You Losing Out By Trading In Online Auctions If you are a Small Business or Home business selling your products on an auction site (or plan to do so), do you realize that you do not own a real business?More specifically, Ebay, Trademe or whatever auction site, are really the ones that own your business. The lifeblood of your business are your customers and your ...Will Emerging Economies Come to the Rescue of the U.S.? U.S. Federal Reserve Chariman Ben Bernanke stated lately that the enormous U.S. trade deficit that the U.S. has incurred over the years is nothing to worry about because it merely reflects global savings patterns. He states that emerging economies has a huge glut of savings and thus the U.S. necessarily must have a great debt to balance out the ...Don't Get Caught By This Stock Tips Spam Scam Spam emails have been the scourge of the Internet for a number of years now and the problem is still growing despite legislation, zealous spam filters and all sorts of clever techniques to prevent it.I'm sure that most of us have been subject to unsolicited email messages (spam) promoting medications, virility enhancers, impotence cures, ...How a First Time House Flip Went Bad Let’s call him John. A bright and hard worker just trading time for dollars at his regular job. His first house flipping experience could have been a lot better.John was watching “Property Ladder” on the A&E network one day and got the bright idea to flip a house himself. After all, those people were making money. A complimentary show “Fl ...10 Strategic Ways To Maximize Your Profits 1. Tell people the point or focus of your web site. Explain to them what things they can do or which goals they can accomplish while visiting your site.2. Make your visitors feel comfortable at your web site. Give them your main business address, your visitors may not trust you if you're using a P.O. box.3. Include a FAQ on your we ...7 Stock Market Tips You Can't Live Without Every day there are a dozen new HOT stock market tips that guarantee your financial success. Every day there are hundreds if not thousands of people that jump on the bandwagon, and every day, each of those people are disappointed.When it comes to popular stock market tips, there is no golden ticket to striking it rich. So I'm going to sho ...Currency Technical Analysis Part 1: The Most Important Theory Ever In currency technical analysis, the most important theory ever, for understanding market movement, is Dow Theory - but its influence is vastly under estimated by the bulk of traders.The reasons why every trader (not just currency traders) should look at Dow Theory, and understand it, is the basis of this article. Understand Dow Theory cor ...5 Tips for Investing in Penny Stocks Investing in penny stocks provides traders with the opportunity to dramatically increase their profits, however, it also provides an equal opportunity to lose your trading capital quickly. These 5 tips will help you lower the risk of one of the riskiest investment vehicles.1. Penny Stocks are a penny for a reason.While we all dream ...Investing Tips for Beginners Investing can be confusing, especially for the beginner. Getting some basic tips can help a beginning investor to make informed choices that fit their needs. Each person has a different goal when investing and that plays a big impact on how you invest. The following list explains some things beginners should know before investing.1. Un ...All You Need to Know About Swiss Banking There is a common misconception that people who cannot store their unaccounted wealth in their own country open accounts in Swiss banks. Even though this may be true to an extent, Swiss banks are well known for their sophisticated and discreet banking services.Many of the rich and famous like film stars, business entrepreneurs, top govern ...Ways to Play Defensively We don't consider playing defensively a way of buying "safe" stocks because safe stocks won't make you any money. We need movement, but there are ways to help you survive huge mood swings that the momentum stocks can display. Today we are going to look at the idea of "averaging down" and if it is a good idea or not. It is not an easy answer. ...Day Trading The Extreme Sport Of Investing The rewards are incredible for those that do it right, but for those who make enough mistakes it will take everything they have and still not be satisfied. Day trading is the practice of buying and selling securities and other financial options. These transactions are usually completed within the same day. Options that are typically traded in ...It's All In How You Play The Game There is an old saying, "It's not whether you win or lose but how you play the game."Few realize just how relevant that saying is, to achieving profitability in the financial markets.The Only True Measure Of Success Is Long Term ProfitsTypically, those new to stock market timing work under the assumption that winning is all ...The IBEX 35 Index From Raw Data to Useful Information Most countries have a stock-exchange where you can trade the stocks of the various companies. If you are starting the investment game, the stock market just looks like a raw list of data (The list below represents the IBEX 35 which is the stock index of the Stock-Exchange of Madrid (source: www.bolsamadrid.es/esp/mercados/acciones):ABERTI ...W.D. Gann Trading Methods - Genius Trader or Overrated Guru? W.D. Gann is one of the most famous traders of all time, and has a huge devoted following - however the fact is, Gann never made the huge profits many of his disciples claim.He did not have a success rate of 90%, as is often claimed - the logic his methods are based upon are unsound, and his predictive methods don’t predict - they leave e ...Forex Trading Tips Foreign Exchange Trading better known as FOREX trading is the buying and selling of currencies from different nations. With different factors involved in this trading and its fast paced nature, it is best that you find simple ways to give you a head start in the industry.The main purpose of getting involve in FOREX trading, just like ever ...The Gold ETF: Maybe The Best Way To Own Gold Let's start off with the assumption that you want to own gold. You want to own gold as a hedge against inflation. You want to own gold as a hedge against a declining currency, like the U.S. dollar. And you want to own gold -- well, for the same reason you would make any investment -- because the price is likely to go a lot higher in coming years ...Discount Online Futures Trading Futures are contracts that obligate sellers to provide buyers a commodity or other asset at an agreed-upon price and date in the future. Futures are widely traded for commodities such as coffee, sugar, oil, and wheat. Futures are also traded for financial instruments such as stock market indexes, government bonds. and foreign currencies. Futures ...Why In The World Would I Want To Trade Stocks? That’s an excellent question. The quick answer is to make money but if we dig a little deeper we will see that the stock trader doesn’t just want to make money, he wants to make a lot of money. In fact, the stock trader is looking for larger returns that he would otherwise get by simply investing in a stock or a mutual fund.It is true, ho ...Make Money Fast - Trade For The Weekend With Fantastic Profit Potential! If you read our other articles on this site, you will see we are bullish of crude oil and unleaded gas on pullbacks.Here is a trade that could return 100% or more, see if you agree with our view, it looks an outstanding opportunity.Crude and unleaded gas have fallen over the last few days, but this will change between Friday and Mo ...How To Turn A Five Minute Presentation Into A $200,000 Marketing Bonus How do you increase your visibility by focussing on 'high pay off' activities to build your profile and profits?Speaking in public is the fastest way to attract, win and even retain more profitable clients.It is a 'one to many' activity that delivers an enormous return on investment for your time and effort.It also builds yo ...Stock Trading Tips And Advice That Can Help You Make Money There are countless books that have been written about buying and selling stocks, and as a beginner, it's definitely worth reading at least a few of them. Be careful, though, because jargon is rife through the world of stocks, and it can be a bit overwhelming when you first stumble across terms like P/E, RSI and EPS, to name a few.It's v ...Lord of War (2005) Deconstructed From our deconstruction of hundreds of Hollywood blockbusters at www.managing-creativity.comLord of War (2005) follows the Hero's Journey template:FADE IN: context [the arms factory; credits; the journey of a bullet from the factory to the murder].Introduce the antihero [Yuri Orlov's back story; Ukranian, immigrated with his ...Financial Markets – Why Do You Have To Pay to Play? Financial Markets can be tricky to understand, but, since they play such a huge role in most of the western, developed worlds, it’s imperative that you understand what they are. People can either become extremely wealthy through them or they can lose everything they have, including the shirt off their backs.It’s not difficult to understan ...Market Timing – Getting It Right For Huge Profits! Market timing is a misunderstood concept and it’s a fact that most traders time their entry points incorrectly and lose.Follow the simple tips below and you will find you can enter trades with better market timing, when the odds are in your favour and profitability is at its highest. Use the simple tips below and get better accuracy in yo ...Executing a Trade There are two basic ways to execute a trade, on the exchange floor or electronically. With the ever changing technological advancements in this day and age, there is a drive to move more trading to the networks and off the trading floors, however this is meeting with some resistance. Most markets trade stocks electronically.The New York ...Energies Update – Bank Profit or Wait for New Highs? If you have followed these energy updates over the last few days you will have seen our analysis that got us in at the bottom of the channel and has produced great gains.Unleaded gas has moved to the top of the channel and crude has also moved higher at a slower rate.The question now in unleaded gas is:Are we set for new hig ...My 7 Most Important Business Lessons Millions of people start new small businesses in the United States every day. Many fail at running a small business every day. What causes one business owner to succeed where another fails? There are seven key areas to focus your efforts for a successful small business. It starts with knowing oneself and ends with not being afraid to ask for hel ...Tips for Buying a Vintage Watch Through Cyber Dealerships and On-Line Auctions The Internet appears to have had three major effects on the vintage watch market: firstly, in terms of supply; secondly, in relation to price, and thirdly, it has given parasites and con artists a global platform in which to practise their deceit.SUPPLYIn pre-internet days, the collector’s lot was that of a somewhat nomadic search ...Commodities & Dollar Cost Averaging a Simple Path to Double Digit Returns This has been a painful month in commodity land especially for anyone who bought around May 12, the peak of the most current gold rally. Since then, gold investors have lost 20% from its high of $730/oz to Friday’s (6/8) close of $608/oz. However, those that bought on the last day of this past year have a slightly differently perspective. Gold c ...
|
