Heres to good investing and trading !!! Enjoy this Article produced by Editor in Chief and Co- Founder of this Blog, Mike Marsh !!
#1 Stocks should be approached more longer term..The best advise is to make sure the company is well-researched..Most stocks are not cheap..The market wont let it get too cheap..When you have a long horizon to a great gain..My advise is to not sell on a 50% rise to 70% rise to its intrinsic value..The best thing is to actually hold to what you think its worth..Too many people get out of a stock due to boredom or another stock that they feel has more upside potential..The one problem with this is becomes habit to not hold for longer terms..And may lead to mistakes since many stocks are not canvassed long enough for study..Best to buy and hold to a fair value..Taking profits after a great rise short term is not so bad..But only after several conviction of a strong uptrend has been reached–30% above 50 dma for example..
#2 Don’t be fanciful about bottom picking or top picking..The odds aren’t in your favor and by doing so you may miss the forest reading of a great many points to the upside of a stock that will in time obscure the 10 cent to 60 cent range of an attempted bottom pick..The biggest mistakes investors make..
# 3 Most of your stock picks should have strong revenue growth..It’s easy for a while to help the bottom line be more attractive by short term manipulation or just management decisions..But due to demand cycles like cutting work force may end up just increasing overtime in top peak seasons of the demand cycle of a company’s goods or services..Look for strong 40% growth or higher on revenues..Some companies you cant even find out where their earnings growth comes from..Without revenue,you cant expect a stock to surge ahead for long..
# 4 Over trading..You are nervous because you have too much of a position of a stock..Who knows what the nervousness is coming from..You then dont study a stock to see how its downtrending and pick a bad point in a pullback..Then because the bottom perfect picking dominates your psyche..Yor quickly sell the buy point you put in that day on the same day getting out of it..Simply because the pick was not close to being right..Had I done this yesterday to a stock I didnt have a good added position to a pullback, I would be squirming in despair..The 23 stock is up 3.57 a share..Again,the goal of an investor is to make money not picking exact bottoms or tops..
# 5 High growth stocks will be full of dilution-– selling after such is a huge mistake and selling during is a mistake too..Just take it on the chin if its one of those rare breeds where expansion looks good..This I can say for many China Agriculture stocks..Very few stocks with a lot of acquisition is healthy for stocks..Those I can say so is good for the gander..
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