Best Stocks to Trade for Tomorrow with logic 23-Mar Episode 270

Open your Trading account in mintues with Zerodha

Stocks bonds or cash? How much you hold of each asset class – or asset allocation – is the most important decision in an investment process. Studies have shown that about 95 per cent of variations in returns on portfolios are explained by asset allocation decisions, Only about 5 per cent are due to other causes…

When it comes to investing, a lot of information exists. If you actually tried to learn everything there is to know about the stock market in one day, then you would probably skip a few key facts that you should know. What you need is a good overview of the fundamentals of sound investing. This article will tell you what you need to know and how to make money in stocks.

The other day, an acquaintance reminded me that all the doom and gloom out there about the economy is all wrong, things are great and the stock market, the DOW, keeps going up he explained. Yes, that’s true, but might I help everyone’s recollection that the DOW recently took some companies off the index and put other companies onto it. What if they didn’t do that? Well, in that case the DOW wouldn’t have done so well in the last three weeks sense. Okay so, let’s talk shall we?

What do the years 1929, 2000 and 2007 all hold common? Those were years where there occurred a huge spike in stocks’ margin debt. In each of those years, to be able to grab an advantage of the stock markets’ soaring values, investors became highly leveraged in their accounts. And investors lost big each time. “The spike in margin debt was rapidly followed by a horrifying stock market crash.” Well, it’s following that same pattern again.

It is very thrilling to get involved with stocks. There are many different investment vehicles, tailored to different financial goals and involving different amounts of risk.

There are two basic types of stock market investing strategies: momentum strategy and value strategy. Momentum investing is often short term focused and uses sophisticated technical charts, trend lines, graphs, and computer simulation models to project short-term stock price movements in days (or even minutes) to capture quick profits. Value investing is focusing on a long-term time span with at least a six-month duration in studying trend charts and financial statements.

As stated in my previous post, different stock investment strategies could work, if implemented correctly. For today’s article, I would like to elaborate on the topic of “value investing.” For those unaware, the two main styles of stock investing are growth and value.

When you’re doing something for the first time, you often end up making a lot of mistakes. Investment is a gamble if not done properly. I would like to share some mistakes that first time investors make while investing for the first time.

I often suggest that investors should manage their own money rather than trust a financial advisor. The benefits of this are numerous including an increase in financial independence as well as the confidence that your money is not to be wasted or misappropriated.

The market structure is changing and beginner retail/individual investors and traders need to know about the Sell Side Institutions for consistent success. “Retail” investors and traders are those individuals who invest and/or trade for personal profit.