There are some things that are better when they are done the old fashioned way. In the modern world of electronics and constant change, it is sometimes difficult for us to see this, but it is true. Stock research for example is something that should not be messed around with.
When one does their stock research, it is advantageous to use the old fashioned methods of looking up a company's fundamentals. These are the key elements of a company's financial health. Things included in this category would include the price to earnings ratio, the earnings per share, projected future earnings, dividends paid, amount of debt on the books, and a variety of other factors. When one looks up this kind of information, they are doing a type of stock research that has all but been forgotten.
It is an unfortunate situation that so many of us have moved on to using other forms of "stock research". It seems that everyone just wants to put their money into the stock that is supposed to be the hot stock of the moment. That type of momentum chasing often leads to taking more losses rather than adding to solid portfolio building. It is the phenomenon of the whisper stock, and it is best to avoid this form of investing.
Another tactic that a lot of individuals try to use is something known as technical investing. This is investing in a stock based on recent price movements. The problem with this type of investing is that it gives way too much meaning to small and temporary movements in a stock. Those who work in technical investing often use charts to justify their investment decisions. They are putting too much trust in the irrationality of the day to day market. This is day trader style investing, and it almost always leads to more losses than gains.
Sometimes it really is better to just get out the old pencil and paper to do your research. Take notes of key fundamental elements in stocks to see how you think they will do in the long term. Do not subject yourself to the whims of any particular single day in the market. You just need to look for stocks that are going to perform for you in the long run. That is the best way to get results in this market.
When one does their stock research, it is advantageous to use the old fashioned methods of looking up a company's fundamentals. These are the key elements of a company's financial health. Things included in this category would include the price to earnings ratio, the earnings per share, projected future earnings, dividends paid, amount of debt on the books, and a variety of other factors. When one looks up this kind of information, they are doing a type of stock research that has all but been forgotten.
It is an unfortunate situation that so many of us have moved on to using other forms of "stock research". It seems that everyone just wants to put their money into the stock that is supposed to be the hot stock of the moment. That type of momentum chasing often leads to taking more losses rather than adding to solid portfolio building. It is the phenomenon of the whisper stock, and it is best to avoid this form of investing.
Another tactic that a lot of individuals try to use is something known as technical investing. This is investing in a stock based on recent price movements. The problem with this type of investing is that it gives way too much meaning to small and temporary movements in a stock. Those who work in technical investing often use charts to justify their investment decisions. They are putting too much trust in the irrationality of the day to day market. This is day trader style investing, and it almost always leads to more losses than gains.
Sometimes it really is better to just get out the old pencil and paper to do your research. Take notes of key fundamental elements in stocks to see how you think they will do in the long term. Do not subject yourself to the whims of any particular single day in the market. You just need to look for stocks that are going to perform for you in the long run. That is the best way to get results in this market.
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