Stock Assault Review: Stock Investing Tips
Stock investing was considered a risky affair just a few years back. A lot of people even shunned it as an avoidable gamble. More than any other business, stock investing is now a surer route to financial prosperity. Although the stock market experts are never tired of saying that stock markets remain mostly volatile and unpredictable, yet there are people who always earn to deal with the fluctuations.
If you search the market for hot stocks, you come across numerous hot stocks almost every day. Many of these stocks may appear promising, however the fact remains that some of them may be extremely risky. It is, therefore, important to learn how to differentiate between a good and a risky stock. Different types of stock require different investing strategies. These 5 stock investing tips will assist you to figure out which stock investing strategy meet your requirements.
Stock Investing Tips #1: Income Stocks
Income stocks is about getting consistent income from the company. Normally, investors will get paid in the form of dividends. Although the dividend will be taxed, it helps investors to generate consistent passive income out of the stocks they bought.
Why the company give dividends? Why don’t they use the cash for themselves?
A company will decide to distribute the excess cash as a dividend when its business operation does not require so much money to grow. This can be either due to limited growth opportunities or the company is able to borrow cash from borrowings instead of reinvesting its earnings. And by giving out the excess cash as dividends, the company is able to maintain very high return on equity too. The investing strategy would be buying the stocks when they are undervalued, or known as value investing.
Stock Investing Tips #2: Growth Stocks
Growth stocks are hot; as hot as iPhone or iPod in fact. They are so hot due to its ability to double, triple or even quadruple investors’ initial investment in just in few years! However, hunting growth stocks is a challenging quest.
It is not easy to discover the next Microsoft. If you do, it needs time to grow.
But here are some tips for you. Look for stocks that have great Earnings Per Share Growth Rate (EPSGR), consistently growing sales and followed by operating cash flow as well as its profit margins. By having that kind of stocks, you are certain that the stock is growing healthily. You can play momentum investing game with this stock.
Stock Investing Tips #3: Speculative Stocks
Speculative stock is high risk high return investment game plan. It is about making 100% returns in no time or losing them altogether! The return potential can be very good because it normally deals with penny stocks. In the same time, the risk is too high since nobody knows if the speculation takes place.
Speculators are normally seasoned traders.
But the victims are mostly beginners. Thus, if you are new to stock market investing, avoid these types of stocks first. Yes, they can make you rich but you went broke if you are not using the right strategies. You might find fundamental and technical useful to trade these stocks, and don’t forget to place stop loss order. Otherwise, your losing streak won’t stop!
Stock Investing Tips #4: Perseverance is the Key
Stock markets often remain unpredictable despite the most scholarly analyses of the experts. If they were predictable, every body would become rich. Loss is an inherent ingredient of every trade. Only those who persevere are the ultimate winners. Losses only wake you up about your mistakes. Learning in any field, or, for that matter in stocks, cannot happen overnight. It takes time, diligence and effort to learn. Experience is a great teacher.
Stock Investing Tips #5: Don’t buy in a hurry and sell in panic
Some people are carried away by big names and get emotionally involved with them. And when the price of their stock falls, they panic and sell it off only to find that the price rises the next day. There are others who just fall in love with a stock and continue to hold it hoping it would touch the skies, even though it may have risen substantially from their buy price. These are not sound economic decisions.
It would be dishonest of me not to warn beginners of the risks involved in trading in the stock market, even with stock trading software. Having used Stock Assault 2.0 myself and even though I am only beginning to tap into stock trading, I realise that there is a high risk of loss. Unlike other home based business or work from home systems, Stock Assault 2.0 cannot guarantee success in such a volatile market. If you are considering stock trading be sure to get educated first and realise the risks involved.
Stock Market Tips & Facts Form Roger Groh