Tips For Staying Up to Date on Stock Trends

Tips For Staying Up to Date on Stock TrendsDue to the power of the Internet, there has never been more access to tremendous amounts of data. When you are investing in stocks, you need to receive the most accurate, precise and relevant information in a timely fashion. Here are some tips for staying up to date on stock trends.

 

The Stock That Only A Mother Would Love

Every day, the media promotes the latest “hot” stock giving you great graphs, charts and statistics. When cable television first started reporting on stocks, the analysts failed to tell you “whether they owned the stock they were discussing.” Just like a mother telling you about her son, there is bias when a stock analyst is discussing an asset he owns.

 

Take Analysis with a Grain of Salt

To compensate for potential bias, you should get multiple opinions on a stock. Consider different ways to measure the value of a stock: sales, market capitalization, ROI and PE. By getting a “second opinion” you can avoid potential mistakes. An online stock trading newsletter can give you more broad viewpoint on investments.

 

Bears and Bulls

In one of the favorite books of stock traders, Reminiscences of a Stock Operator, a professional stock broker states: “I know this is a bull market as well as you do.” Data, news, reports, stocks and markets function differently during bull cycles than they do during bear cycles.

 

Target Significant Events

There are 365 days in a year and more than 7,000,000,000 (that is seven billion) people on the Earth. And every single day, there are statistics, meetings and economic reports that could have an important effect on the value of your stocks. You don’t have time to read every report.

That is why an online stock trading newsletter is so important. Just like reading the morning newspaper, you will get a clue about what is happening in the world. You will be better informed and positioned to communicate, discuss or make a decision with respect to buying or selling a stock. You can target which significant events affect your stock portfolio.

Why is this stock price increasing?

The wealthy investor understands the fundamentals of a good stock: responsible management, brand and sales that lead to higher profits per unit invested. If you see a stock increasing in value, ask yourself “Why?” Crunch the numbers. Have the sales increased? Does the company have a new product or service? If you can’t find any tangible reason for a price increase, the stock might be in a bubble.

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