Best Stocks to Trade for Tomorrow with logic 01-Mar Episode 255

Open your Trading account in mintues with Zerodha

While both stock and mutual fund are considered good option for long-term investment, there are many differences between stock investing and mutual fund investing. Since they both demand periodic review, it is good to know the differences between them, so that one can take an intelligent decision.

If you’ve decided to invest your money, then that’s a good thing. But investing your money without giving it a good deal of thought is definitely a bad thing. What you need to do, is consider all of the many highs and lows of a particular investment and then decide whether it is worth you putting your money in it. And if you can’t understand what the pros and cons of an investment are, then don’t worry – you can get some help. Read on to know about how you can get investment advice.

If you want to stack the odds in your favor, don’t needlessly make your stock investments in installments. Sometimes stretching out a lump-sum investment happens to work out, but it isn’t the rule.

After months of declining earnings and investor losses, the stock market, it appears, is bouncing back. Investor confidence is higher than it has been in years, and this new found bullish attitude is trickling down from the Blue Chips to the penny stock market.

In this world of fast wheeling and dealing and trading people tend to forget that some of the most significant wealth can be gotten by buying good stocks and holding onto them for a longer period of time. There are many different guidelines and techniques about which investors should be aware when looking for stock investments. There are long-term investments which over a period of time can make a nice nest egg to fall back upon.

Penny stocks are defined by the Securities and Exchange Commission or SEC as speculative securities which are valued under $5 per share and are offered by small companies. In time this definition of penny stocks has also stretched to include all speculative stocks which have share values near $5 and are not traded on the major stock markets.

Traders or Investors, everybody likes to see the chart to know where their stock company stands. But analyzing the chart without understanding the basics of market cycles leads nowhere. It is a mandatory task to know about the market cycle before you go long or short in a stock.

There are many stock selection methods such as industry analysis, asset class analysis, style box reviews and income or price appreciation. If asked most analysts would recommend a diverse portfolio.

Sometimes called micro-cap stocks, penny stocks is the term investors and analysts use to describe stocks traded ‘Over the Counter” and for less than $5.00 a share. Companies selling these stocks are either new, emerging companies, looking to make their way onto one of the major stock exchanges or companies that have run into financial problems and have been “de listed” from a major exchange. Investors looking for stock picks usually begin their search online.

Every investor wants to find a hot tip. Whether you hear it from your broker, your hairdresser or the friend of a guy who works in this great tech start up, most investors will look to get an edge any way they can.