profitable investment timeline

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Profitable Investment Timeline By www.ProfitableInvestingTips.com

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Page 1: Profitable Investment Timeline

Profitable Investment Timeline

Bywww.ProfitableInvestingTips.com

Page 2: Profitable Investment Timeline

Success in both short and long term investing

often has to do with developing a profitable

investment timeline.www.ProfitableInvestingTips.com

Page 3: Profitable Investment Timeline

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

Page 4: Profitable Investment Timeline

Unfortunately, fundamentals can change quickly in today’s economy.

www.ProfitableInvestingTips.com

Page 5: Profitable Investment Timeline

In today’s chaotic markets the smart

investor also learns to do technical analysis of

market sentiment.www.ProfitableInvestingTips.com

Page 6: Profitable Investment Timeline

Long term, buy and hold, investing looks for long

term profitability.www.ProfitableInvestingTips.com

Page 7: Profitable Investment Timeline

This is often not present in a chaotic market.

www.ProfitableInvestingTips.com

Page 8: Profitable Investment Timeline

Thus an investor needs to look for a profitable

investment timeline each time that he

invests.www.ProfitableInvestingTips.com

Page 9: Profitable Investment Timeline

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

Page 10: Profitable Investment Timeline

If the publication’s analysis is correct the

fundamentals of the stock may support the

higher price.www.ProfitableInvestingTips.com

Page 11: Profitable Investment Timeline

On the other hand the stock price may rise

above what fundamentals support

and the price may ricochet back.

www.ProfitableInvestingTips.com

Page 12: Profitable Investment Timeline

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.

www.ProfitableInvestingTips.com

Page 13: Profitable Investment Timeline

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

Page 14: Profitable Investment Timeline

Businessmen expect to see a strong rate of

return on their investments in research, development, marketing, production, and all other facets of their business.

www.ProfitableInvestingTips.com

Page 15: Profitable Investment Timeline

Investors should do the same.

www.ProfitableInvestingTips.com

Page 16: Profitable Investment Timeline

It should not be a guessing game to invest

in stocks.www.ProfitableInvestingTips.com

Page 17: Profitable Investment Timeline

Prices of dividend stocks, for example, tend to

follow current and projected interest rates.

www.ProfitableInvestingTips.com

Page 18: Profitable Investment Timeline

Long term investors expect to make a return

on investment reliably above the rate of

inflation.www.ProfitableInvestingTips.com

Page 19: Profitable Investment Timeline

This approach works best with stable stocks,

typically large cap stocks.

www.ProfitableInvestingTips.com

Page 20: Profitable Investment Timeline

A profitable investment timeline with the likes of Proctor and Gamble can

be decades.www.ProfitableInvestingTips.com

Page 21: Profitable Investment Timeline

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.

www.ProfitableInvestingTips.com

Page 22: Profitable Investment Timeline

Without a quarterly dividend check an

investor needs to see stock price appreciation

in order to stay with a stock.

www.ProfitableInvestingTips.com

Page 23: Profitable Investment Timeline

A growth stock may return a hundred fold on

initial investment.www.ProfitableInvestingTips.com

Page 24: Profitable Investment Timeline

But, if that takes a decade then the rate of

return is substantially less.

www.ProfitableInvestingTips.com

Page 25: Profitable Investment Timeline

When investing in such a stock a profitable

investment timeline will see early and continuing stock price appreciation.www.ProfitableInvestingTips.com

Page 26: Profitable Investment Timeline

Many long term investors are good a

picking stocks but less skilled at deciding when

to sell stocks.www.ProfitableInvestingTips.com

Page 27: Profitable Investment Timeline

A stock with a good margin of safety and

intrinsic stock value is a good long term stock

pick.www.ProfitableInvestingTips.com

Page 28: Profitable Investment Timeline

However, some stocks grow in fits and spurts.

www.ProfitableInvestingTips.com

Page 29: Profitable Investment Timeline

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.

www.ProfitableInvestingTips.com

Page 30: Profitable Investment Timeline

In the end this comes down to calculating the

long term return on investment of any

individual stock or of an entire portfolio.

www.ProfitableInvestingTips.com

Page 32: Profitable Investment Timeline

For more insights and useful information

regarding investments and investing, visit

www.ProfitableInvestingTips.com

.