Only one sure thing in the stock market, and that is fluctuation. The market will go up and the market will go down. The real trick to making money is to make good guesses as to which it is going to do and when.
Examine the markets, choose a stock with a good record of dividends and capitol gains. Compare it to the performance of other stocks in the industry, and compare its performance to the overall market. When it is all over, it still comes down to paying your money and taking your chances.
Personally, I don't have the nerve or the education to play the stocks. I invest in mutual funds. Use the same methods, study past performance (though this is no guarantee of future performance), study the portfolio held by the fund, study turn-over in the portfolio, study the fund management and the stability of that management. Look at the record of dividends and capitol gains disbursements. Then decide if you want to play it safe, take big gambles, or small gambles. It is actually best to spread your investment among several funds in different categories. Invest part of your funds in safe growth/income funds, and only invest what you can afford to throw away in high risk funds. Put the rest in low or medium risk funds. That will give you relatively safe growth, some mildly risky chances for big profits, and a chance to either make big profits or loose your butt. With risk spread, you probably won't loose evereything.
Doc Hudson
2007-05-22 06:51:13
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answer #1
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answered by Doc Hudson 7
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Steve Cohen has many Wall Street insider connections, so he actually knows information before many people do, especially the average investor.
If you want to know a good book about investing, read "One Up On Wall Street" by Peter Lynch. There is never a sure thing in the stock market with an individual stock, but you're sure to be rich if you invest with patience and discipline.
2007-05-22 16:03:18
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answer #2
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answered by KatGuy 7
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There is not a sure thing in the stock market or anything else in life. Read The Intelligent Investor. It is a great book.
2007-05-23 19:34:03
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answer #3
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answered by Anonymous
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