PONDERING ON WHAT STOCKS TO BUY?One of the biggest and common natural trend for starter investors is to ask for the perfect stocks to buy at a particular time.
Well, to be honest, I don’t know.
And I think no one knows!
Because the stock market, while may have some trends, is still unpredictable. If it were not, many would have been millionaires in days.
So a more secure way for your investing is to go back to the core of the matter, examining closely what stocks you’re going to buy (or avoid!).
And since you're looking for additional money, then why not search for the companies with the actual MONEY?!
Nobody can predict interest rates, the future direction of the economy, or the stock market. Dismiss all such forecasts and concentrate on what’s actually happening to the companies in which you’ve invested. - Peter Lynch
Always be in-the-know of the industries emerging at any particular time. Depending on the prevailing national economic conditions, different times call for different needs, favoring specific industries over another.
Once you know what the leading industries are, you automatically reduce your screening to those companies belonging to that market industry expected to perform well.
UMMY OFFERINGS - the need for superior products and services.
Ultimately, this will speak for the company. Superior services and products maintains customer’s loyalty. This also enables them to attract more and more customer enlarging their share of the market. What does that mean? – Increased earnings!
Finding the news that your stocks gained the appraisal of a regarded consumer group can be a good sign for you. Constant consumer complaints and rumors of dissatisfaction can spill to you the worse to come.
Peter Lynch often said he found some of his best-performing investments while visiting the mall with his family. He noted that, “If you like the store, chances are you’ll love the stock.”
There you have it.
Make no mistake. Obviously this doesn’t mean that you look for a company with all the above highlights before you click that buy order. That would be very safe, but also very restricting. Use them more as your guide, at least you would easily know what stocks to ignore.
Find a company with the MONEY. They certainly have the future.
Have fun investing!
PS1: Well, this just struck me. I had this gnawing feeling that I might be encouraging you to enter a world that’s totally insensible to you. Don’t play the game without knowing its rules. Know how the stock market really really works!
PS2: These guidelines can be quite demanding. Especially for beginners, you wonder how and where to get these tons of info. Unless you’re really into it, chances are you don’t have enough time to even dwell more in any of the above-mentioned criteria. That’s the challenge, and you’ll be get used to it through time. Short-cut your analysis! Join the Truly Rich Club.