What Are Some Stock Investment Strategies For Improving Your Game?

What Are Some Stock Investment Strategies For Improving Your Game?

StockMakret

If you are invested in stock market investments, you already know that making money off the markets can be easier said than done. Here in this article, however, we are going to share with you some stock investment strategies that you can implement to improve your endgame.

It starts with you knowing what the more seasoned stock investors do before they pick stocks – they do an analysis. And not just one type of analysis. They do different types of analysis – fundamental analysis and qualitative analysis.

Fundamental analysis is a trite term and it’s something that’s been used over and over again, you will want to skip it just because you are tired of hearing about it. However, if you are serious about making money with stocks, do NOT skip this part. What is fundamental analysis? It basically refers to the finances of the company, that is, if it has sound fundamentals. You need to take a look at the company’s valuation to determine its value, and whether or not that value will grow within the next five years.

In qualitative analysis, you take a look at the people who are running the company. Are they competent, and can they manage the company and steer it toward profit and stability within the next few years?

All stock investors need to do both types of analysis before investing a dime in a company’s stock. You can get company information from the website of the Securities and Exchange Commission.

If you are like most people, you are not pinning your hopes on the company issuing dividends for you to make a profit. Your strategy would involve buying stocks when the prices are low, and selling them when they are high. The “buy low, sell high” strategy is the best and the only strategy anyone will ever need to make money in the stock market.

The best time to buy stocks is when the economy is on a downturn when most stock prices fall. You don’t need to worry about the price of a stock not ever moving up because it always does. Historical trends have proven it time and again. This is especially true if you have done fundamental and qualitative analyses on the companies issuing the stocks. It is important that you hold on to your portfolio long enough so that you see a significant rise in the prices.

Take your emotions out of your strategy. There are investors out there that have a knee-jerk reaction of selling stocks as a reaction to the price of a stock falling. This is perhaps one of the worst stock investment strategies there are. If you see the price of your stock falling, take a step back and hold on to it – you only lose real money when you sell.

Where can you find stocks to buy? Sign up for an account with a stock investment broker like e-Trade because it will then connect you to the different stock exchanges like the New York Stock Exchange.