profitable investment timeline
TRANSCRIPT
Profitable Investment Timeline
Bywww.ProfitableInvestingTips.com
Success in both short and long term investing
often has to do with developing a profitable
investment timeline.www.ProfitableInvestingTips.com
Investment opportunities come and go. Successful investors routinely carry
out fundamental analysis of the stocks,
commodities, real estate, and other assets
in which they invest.www.ProfitableInvestingTips.com
Unfortunately, fundamentals can change quickly in today’s economy.
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In today’s chaotic markets the smart
investor also learns to do technical analysis of
market sentiment.www.ProfitableInvestingTips.com
Long term, buy and hold, investing looks for long
term profitability.www.ProfitableInvestingTips.com
This is often not present in a chaotic market.
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Thus an investor needs to look for a profitable
investment timeline each time that he
invests.www.ProfitableInvestingTips.com
When a publication such as the Wall Street Journal, Forbes, or
Barron’s runs an article about a promising stock there is often a positive market sentiment that drives the price of the
stock up.www.ProfitableInvestingTips.com
If the publication’s analysis is correct the
fundamentals of the stock may support the
higher price.www.ProfitableInvestingTips.com
On the other hand the stock price may rise
above what fundamentals support
and the price may ricochet back.
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A long term investor looking for a profitable
investment timeline needs to take market
sentiment into account when deciding at what price to buy and what
price to sell a promising stock.
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He may choose to hold the stock for years but
then he needs to consider the rate of
return on his investment.www.ProfitableInvestingTips.com
Businessmen expect to see a strong rate of
return on their investments in research, development, marketing, production, and all other facets of their business.
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Investors should do the same.
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It should not be a guessing game to invest
in stocks.www.ProfitableInvestingTips.com
Prices of dividend stocks, for example, tend to
follow current and projected interest rates.
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Long term investors expect to make a return
on investment reliably above the rate of
inflation.www.ProfitableInvestingTips.com
This approach works best with stable stocks,
typically large cap stocks.
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A profitable investment timeline with the likes of Proctor and Gamble can
be decades.www.ProfitableInvestingTips.com
When investing in small cap growth stocks an investor is commonly
looking for a higher rate of return than when
investing in stalwarts such as P&G.
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Without a quarterly dividend check an
investor needs to see stock price appreciation
in order to stay with a stock.
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A growth stock may return a hundred fold on
initial investment.www.ProfitableInvestingTips.com
But, if that takes a decade then the rate of
return is substantially less.
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When investing in such a stock a profitable
investment timeline will see early and continuing stock price appreciation.www.ProfitableInvestingTips.com
Many long term investors are good a
picking stocks but less skilled at deciding when
to sell stocks.www.ProfitableInvestingTips.com
A stock with a good margin of safety and
intrinsic stock value is a good long term stock
pick.www.ProfitableInvestingTips.com
However, some stocks grow in fits and spurts.
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When a stock has had a good run and, perhaps, tripled its stock price, is
it time to sit on the stock and collect dividends or
sell to take profits and find the next stock.
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In the end this comes down to calculating the
long term return on investment of any
individual stock or of an entire portfolio.
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Whether you are investing in Microsoft patents
or investing in Euro Zone Stocks
, the most profitable investment timeline for one stock may be years
and for another it may be a week.
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For more insights and useful information
regarding investments and investing, visit
www.ProfitableInvestingTips.com
.