Managing your inventory: 5 considerations!
Although some politicians, etc., emphasize the performance of the stock market, rather than the broader picture/scope of the economy in general, it seems that very few are adequately prepared and/or ready to handle the situation. main needs, to invest in stocks. It takes an open mind and the ability to focus, more on reality than emotion, and consider a variety of potentially relevant factors! Having been a Principal and Registered Representative of investment companies for a considerable period of time, I firmly believe that potential investors (especially in the stock market) must have a mindset that considers these variables and proceed, in a wise and more focused manner. With that in mind, this article will attempt, briefly, to consider, examine, review, and discuss, 5 important considerations, regarding stock investment/investment management.
1. Assess fundamentals/finances: Unfortunately, as with many things, these days many people rely too much on the analysis/opinions of others, instead of thoroughly examining the fundamentals of a particular corporation and what the audited financial statements mean and represent. Read books, take courses and understand key terminology. Know how to read and understand budgets and financial statements. Why do analysts make certain predictions or analyses? Try to separate emotion from logic early on!
two. What to do when the price of a share rises?: The price of a stock can rise, rise, remain stable or fall. What should you do when the price of a particular stock goes up after buying it? Ask yourself, if you didn’t already have it, would you buy it at the higher price? If the answer is yes, then buy additional shares! If not, sell what you own? If you’re unsure, then it makes sense to hold or sell some of these, to ensure you don’t lose money if/when prices drop! Be objective!
3. Stock price remains stable!: What strategy is a logical and intelligent approach if/when the price remains more or less the same as when you originally invested? Don’t fall into the trap of becoming emotionally attached to a particular stock, but rather, after a period of time, consider again whether you were investing, again, Would you be putting your hard earned money into this corporation? If so, hold and consider buying more shares, but if not, sell your position!
Four. Stocks go down: What should you do, if it goes down, in price? Some panic and immediately sell or consider selling! While that might be smart, in some cases the smartest approach is, again, to ask yourself if you still believe in the particular company, and if you do, maybe you should invest in it. more actions!
5. Short, intermediate or long term: Consider whether you are looking at primarily short term/immediate results, more intermediate, and/or longer term. Do you know and remember why you bought? Was your intent growth, revenue, or a combination? Are your objectives/goals/expectations somewhat – realistic?
Before you invest, fully understand what the main considerations and your personal comfort zone may be! Always consider this as well as the potential risk/reward basis!