Understanding Investments

[Phronesis]

In the investment market, the more retail investors want to make money in the stock market, the harder it is to make money. After all, the future is unknown and difficult to predict. Therefore, investors should invest rationally, just as they often use investment strategies when investing.


The experience of successful people tells us that large profits and long-term survival in the stock market must be lonely value diggers rather than hot chasers. Investors should always warn yourself to speculate in stocks .

Because hot stocks generally have a lot of eyes on them, its hidden value has already been tapped, which is reflected in the serious overdraft of stock prices. Hot stocks will always rise quickly and rise far beyond their own valuation. In addition, when the performance of the company's fundamentals is basically difficult to support the continued growth of the stock price, if it is slightly turbulent or not as expected, its decline will be as fast as its rise. If you do not sell immediately, your profit will be Soon it shrank, and even those who chased the higher not only lost profits but also turned into losses. So retail investors should be like successful investors, avoid chasing highs, and look for undervalued high -quality stocks. So how can this be done?

1. Learn more investment techniques.

If you do not learn technology, then you may not know how to judge the trend of stock price development when trading stocks. So in the stock market, using various indicators to judge the trend of stock price development is actually stock trading technology.

Second, understand the meaning of the economic cycle.

The stocks of companies in different industries have different market performances at different stages of the economic cycle. Some companies are extremely sensitive to the impact of economic cycle changes. When the economy is booming, the company's business develops quickly and its profits are extremely rich; on the contrary, when the economy is in recession, its performance also drops significantly. The other types of companies are less affected by economic prosperity or recession. During the prosperity period, their profits will not increase significantly, and there is no significant decrease in the recession period. It may even be better. Therefore, in the economic boom period, investors are better to choose the former type of stocks; and when the economy is in recession or recession, it is better to choose the latter type of stocks.

3. Develop your own ability to select stocks.

Buffett never invested in high-tech stocks because he said he didn't understand. Although a simple answer, it actually contains great wisdom. Because the ability to truly select stocks is not to go to the stock market, but to stick personal investment to a company whose ability can be understood.

 

[Ephy]

Investments are the best businesses to do compared to employment. But before you invest in anything first do your research very hard and come up with the following :

1.Business Idea
2. Capital
3. Market strategy
4. Demand and supply
5. Location
6. Government intervention i.e business license.
7. Mode of transportation from the industry to the market.
8. Mode of communication.
9. Security.

And many other factors that must be considered before starting any business.

 

[Ephy]

Investments are the best businesses to do compared to employment. But before you invest in anything first do your research very hard and come up with the following :

1.Business Idea
2. Capital
3. Market strategy
4. Demand and supply
5. Location
6. Government intervention i.e business license.
7. Mode of transportation from the industry to the market.
8. Mode of communication.
9. Security.

And many other factors that must be considered before starting any business.

After you've started the business you need to come up rules and regulations that will govern the business and all employees have to adhere to the rules. Also you can come up with a a board of directors if the business is a partnership thing to help each other in decision making and running if the business. Make sure you try something new or come up with new ideas on how to run and expand the business so that in future you get more profits than before.

 

[Carson20t]

Thanks really for the tips,to sum up all that has been said here is that the basic core business is to do a thoroughly due delegence research on whatvyoubwsnt to venture in and highlight the merits and demerits which in simpke terms can be terned as a budiness impact assessment.

This is what makes alot of business to fall because of overlooking the higlighted indicators and not giving a business the altmost attention and wait for it to pick up and start to support itself as a business.

 

[Ithedicious]

Personally I don't really understand more about the stock market because that is something I have to learn and understand how to invest properly , because investment safety is always the most important thing I always consider when trying to engage in any form of investment .

Even if I need to have interest in this type of investment , what I will try to do is that I will make sure to learn and understand it to the best of my knowledge.

Based on the experience of so many people here , I have come to understand that anything that has to do with volatility is something we must definitely be careful because if proper care and understanding is not there , it is quite possible for us to loose so much of our investment which is not something we are interested to achieve.

For me I rather invest in what I understand and earn a little profit than for me to invest in what I don't understand hoping to make so much profit because at the end of the day I may even those more than what I expected . It is somehow risky if we are to invest in what we do not know. We just have to be very careful.