7 Tricks by Smart Money

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When the stock market marches into record territory like it has been, it’s tempting to take some shares off the table. The prudent investor, it’s been said, will sell his losers and keep his winners. To maximize stock profits, the goal is to keep profits from the winners.

Stock investment is not for the faint of heart or the over emotional individual looking to make quick returns by investing money they can not afford to lose. Most people are a little misguided about the benefits and the risks of investing in the stock market.

With the advent of technology we have things at our finger tips. We have access to software, expensive newsletters, radio and television stock pickers and multitude websites that all claim they can assist you in finding stocks that will make you rich.

The article describes how the old “buy and hold” method of stock investing, which was based on the idea that the market is efficient, has been proved by the chaos theory to be wrong and very risky.To succeed in this highly volatile environment, one has to limit one’s time in the market, i.e., trade rather than invest long-term

Success is not present for the traders with no preparation. You have to have a stock trading system. A stock trader has got to have a stock trading system to really find success in stocks.

Mumbai’s Sensex stock market index rose 46.7 per cent last year — compared to the FTSE’s 10.7 per cent — and has returned an average of 22 per cent every year since 1991, almost three times more than the FTSE-100.

So finally the goal of asset allocation is to create a unique portfolio that suits your needs and wants in the market. According to Wikipedia, Asset allocation is a term used to refer to how an investor distributes his investments among various classes of investment vehicles (e.g., stocks and bonds). You may have a lot of cash but you do not know how do you allocate that cash so that you can make money from that invested cash. That is described as asset allocation.

The bull-run in the Indian stock market came to a halt on May 18, as the Bombay Stock Exchange recorded its worst fall. The benchmark index of the Bombay Stock Exchange closed at 11,391 down 826 points, which is the highest ever fall for the Sensex. The NSE Nifty closed with a loss of 246 points at 3388. Taking cues from both global and domestic developments, the markets entered their first correction mode in two years.

Google stocks are currently the most talked about in the stock market and are commonly referred to as GOOG. Many websites out have currently updated prices and quotes (stock market predictions on where Google stock price is the heading) but Google itself has its own regularly updated webpage.

Be sure that you keep in mind your investment goals and the types of services that you are looking for when choosing a stock broker. Know the stock broker’s investment philosophy and how that brokerage firm chooses to work with its clients.