Monday, May 12, 2008
How to stay Focus? “The Goal of your Investment”
As the stock market still wondering if we are in a recession or a depression. We could try predicting the end of it but no one really know until we out of it. These are hard turbulence time for investors. It is also a very good time for feasting on undervalue stocks. Remaining focus on key evaluation of your investment goal will keep you on the right track. During this duration you will face with challenges such as should I switch company or turning yourself into volatility trader. The influx of stocks that randomly move up and down is very tempting for investor that is watching there portfolios stagnant thru the months. To be successful during these time, we have to remember some of the key why we invest in the first place. We invest to earn wealth for the future(Try seeing thing as long term perspective or a bigger picture). We invest in company that we evaluate as strong and fundamental sound that will be able to sustain a recession or a depression. We invest when opportunity serve itself. Rather focusing on the stagnant portfolios, try focusing on looking for opportunity during these time instead. The are many stocks that is undervalue or is in a recession. Capitalizing on these opportunity will definitely help your portfolios grow. As I will tell you when people are not buying, you should be buying. Why? Remember my earlier post where I describe you what a stock is, Price of stock are determined by the sellers and the buyers, if there more selling and less buying then the price go down vice versa. So the likely hood you buying something overvalued during a recession is very low. This doesn't mean we have to go out and buy any stocks. Even during a recession or depression there are still certain sector that are doing really well and probably have a bunch of overvalued stock because everyone is moving to this sector. For example the gas and mineral sector are just booming like crazy. You still have to go and look at some of the company that you think was strong fundamentally and it stock price is declining due to the recession. There no easy way to being successful, you always have to do your homework(Listen to quarterly earnings conference call, Every earning report is file to UNITED STATES SECURITIES AND EXCHANGE COMMISSION is available on www.egar-online.com for you to research, and our own analyzing of the company). When it come down to it, these homework is the reason successful investors confidently stay focus and remain calm when there a recession or depression.
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1 comment:
depression is on the cards if oil prices did not fall
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