123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Marketing >> View Article

Sabotage Your Portfolio

Profile Picture
By Author: Anthony Green
Total Articles: 36
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

1 Buy stocks in sectors that are extended because it�s different this time.

On the surface, the stock market appears different all the time. The leadership changes: in come the Nifty 50, and then out they go. Small-cap stocks outperform for a while, then it�s back to the large caps. However, the underlying forces that drive the stock market are always the same. They are true and time-tested and do not change. They are supply and demand. That�s why buying sectors that are extended (overbought) will not be different this time.

2 Try to bottom fish a stock in a downtrend.

�The trend is your friend� is a true statement. So don�t go against it without some inkling that the trend has changed. Bottom fishing a stock in a downtrend is the opposite of being afraid to buy strong stocks. Do not buy a stock just because it fell sharply. You want to buy a stock that is likely to move higher, not one that is not likely to fall further. At a minimum, wait for the stock to show a sign that demand is back in control and suggesting higher prices. That may be a simple buy signal on ...
... the chart or a reversal back to the upside after holding an area of support. Also remember why you initiated the position. Be careful not to let a trade turn into something else.

3 Buy a stock because it is a good value.

These days, value is in the eyes of the holder, and therefore it is a subjective term at best. If a stock has become a good value, ask why. This is important, because a stock can stay a good value by not moving for the next decade, or worse, become a better value by dropping another 20 percent. The true value of a stock is determined by its capital appreciation potential, not numbers on a balance sheet. The basis for capital appreciation lies in the supply and demand relationship of the stock. Appreciation can occur only if demand grows stronger for the stock and buyers are willing to pay a higher price. Watch the point and figure charts to determine if a stock is likely to move higher in price and become a good value.

4 Do anything based on a magazine cover.

Following the hot news that appears on magazine covers is a shortcut to the poorhouse. Why should you follow the advice of someone who has just moved from the society pages to the business section?

Total Views: 289Word Count: 415See All articles From Author

Add Comment

Marketing Articles

1. Hobo E Services Is The Leading Digital Marketing Company In India
Author: Hobo e Services

2. Top Social Media Marketing Companies: Hobo E Services
Author: Hobo e Services

3. Finding Affordable Web Design Services In The Uk Without Compromising Quality
Author: Michael Dawson

4. Digital Marketing Company In Ghaziabad - Hobo E Services
Author: Hobo e Services

5. The Power Of Social Media In Real Estate: Top Agencies Transforming Realtor Brands
Author: Barry Elvis

6. Maintenance Tips For Ensuring Longevity Of Stainless Steel Flanges
Author: Nitech Stainless INC

7. Ways Consumer Insights Enhance Brand Reputation
Author: rohit

8. Boost Your Brand’s Success With Boostbrighter - India’s Most Trusted Digital Marketing Agency
Author: Shehnaznaz

9. Achieve Digital Success With Ed7 Group – The Trusted Agency In Kanpur
Author: Abhishek Mishra

10. Using Social Media As A B2b Lead Generation Tool
Author: tim seifert

11. Digital Marketing Agency In Ghaziabad: Hobo E Services
Author: Hobo e Services

12. Digital Marketing Company In India - Hobo E Services
Author: Hobo e Services

13. How To Write Captions For Instagram To Gain More Followers
Author: Emma Kate

14. What Are Digital Marketing Services?
Author: Sweety

15. Digital Marketing Agency In India: Hobo E Services
Author: Hobo e Services

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: