Strategy is one factor that drives a business. It is just like having a vision; being focused and being determined to make it in business. Of course there is absolutely a winning strategy for investing and trading in stock market . People engage in stuffs without care to know much about how it works and this equally applies in stock trading activities where a lot of people do it without any knowledge of how it works, what to do when price falls or rises, etc.
Without an in depth understanding of facts about stock trading, an investor stands to risky his or her investment in stock. What is a stock by the way? A stock could be referred to as a share, it is commonly known as a share of ownership in a company. When you purchase shares of stocks from a company, you automatically by implication become one of the owners of such company. What is a stock market? A stock market is the market for the trading of company stock, both for private trading and those securities listed on a stock exchange.
During the course of explanations and augment, I will use a lot of scenario to bring into understanding those strategies that are to be respected and put in place for successful and rewarding stock investment. For the sake of what this article demands, I will like to discuss with illustrations and arguments how some of the key strategies that I have listed below would be taken towards realizing easy cash crow in stock marketing or investment.
Those strategies include stock structure analysis, company’s track records, bold step taking, Political and economic stability of the country where you trade, quick response to information and etc. BOLD STEP TAKING Boldness is an attribute of champions and it remains a vital component of every winning combination. In taking a look at this particular ingredient of success and how you can use it to complement your stock investment goals. I will like to illustrate using a lion. Which of course we do know that it is one animal that comes to our mind when boldness is mentioned.
This dreaded, ferocious lion and undisputed king of the animal kingdom though not the biggest, the fastest or the strongest of all other animals but will tower over others and take a place of pride for itself, dictating the affairs of its comrades and getting maximal returns for its exploits so is supposed to be the characteristics of an investor in stock market who is looking forward to winning. If it is in size, the elephant is known to be about four times bigger than the average lion.
That should have positioned the elephant as the king of the forest but it did not. Then an investor should know that it’s not the amount of resources in your pocket that really matters but the boldness to invest it and allow your money work for you. Always be bold enough to make your steps to stock investment but do not rush to the stock market buying shares just for the sake of investing. Be calculative, objective and consider other determinant factors and that will guide your ability to go a long way to win. COMPANY! S FINANCIAL TRACK RECORD
A company’s track record is very crucial in analyzing where and when to invest in there stocks and why to do that. It is important to know and have understanding of the history of dividend and bonus issues in the sector. If a company’s financial reports for over say three years is quite consistently accelerating. It gives more rooms for one to invest on it knowing too well that it will reproduce continuity over time in profit. Such an investment in my own experience has never failed while you watch and read about all other determinants that follow.
STOCK STRUCTURE ANALYSIS Many times, some stocks are structured to come by way of private placement or initial public offer (IPO). If an investor is resourcefully buoyant and bold, it is more profitable to invest during private placement and allow it grow. The reasons are that during private placement the unit price is always very cheap and when listed on the stock market exchange, when popular trading starts, you witness a tremendous rise in unit price of that same stock because it has attracted public interest.
Investors begin to rush for it and the price start going up. In fact simple economics’ supply and demand theory is applicable here. That is when you smile to the bank A good insight into the fundamental of each stock and good information is helpful. Analyze stocks based on real time information and be bold to act fast on that information. Do not postpone and have double minds about it. After all investment is good and it is good for the future, so you stand out to loose nothing.