Managing Your Stocks: 5 Considerations : Although, some politicians, etc., emphasize, how the stock market is performing, rather than the broader picture/coverage, of the economy as a whole, it seems, very few, are well prepared, and/or, prepared, to address the ultimate need, investment in stock.
It takes an open mind, and the ability to focus, more on reality, than on emotions, and consider, a variety of, of, potentially, relevant factors! Having, been a Registered Representative, and Principal, of an investment firm, for a considerable period of time, I feel, strongly, potential investors (especially, in the stock market), must, have a mindset, that considers, these variables, and take place, in a wiser and more focused way.
Based on this, this article will try to briefly consider, review, review, and discuss 5 important considerations in managing stock investments/investments.
1. Evaluating fundamentals/financials: Unfortunately, as in many things, these days, many people rely too much on the analysis/opinions of others, instead of thoroughly examining, the fundamentals of a particular company, and what audited, financial statements, mean, and represent. Read books, take courses, and understand, key terminology. Know, how to read, and understand, budgets, and financial reports. Why do analysts, make certain predictions, or analyzes? Try to separate, emotion, from logic, from scratch!
2. What to do, when the stock price goes up?: The stock may rise, rise, stay steady, or fall in price. What to do, when the price of a particular stock goes up, after you buy it? Ask yourself, if you didn’t have one, would you buy it at a higher price? If the answer is yes, then buy additional shares! If not, sell what you have? If you are unsure, then, it makes sense, to hold, or sell – some of them, to make sure, you don’t lose money, if/when, the price drops! Be objective!
3. Stock price remains stable!: What strategy, logical and smart approach, if/when, price, stays, almost the same, like when did you, initially, invest? Do not fall, into the trap, to become, emotionally – attached to a certain stock, but, after a period, time, consider, whether, again, if, you invest, again, will you put hard – earn money, in this company! If, yes, hold on, and consider, buy more shares, but, if not, sell – off, your position!
4. Stock goes down: What should you do, if the price drops? Some, panicked, and immediately, somehow, sold – or considered, did it! While, it may be wise, in some cases, the wisest approach, is, again, to ask yourself, whether, you still believe in a particular company, and, if, you, perhaps, you should, invest in more stocks. !
5. Short, medium, or longer term: Consider, do you, mostly, see short/immediate, more, medium, and/or, long-term results? Know, and remember, why did you buy? Is it your intent, growth, or revenue, or a combination? Are your goals/goals/expectations somewhat realistic?
Before investing, fully understand, what the principal considerations, may be, and your personal comfort zone! Always, consider these, as well as the potential, risk/ reward basis!