To invest in stocks with news
Frist, the bad news is good news in stock market . why?
Yet the stock market keeps going up. Why? Investors believe, rightly or wrongly, that there is light at the end of the tunnel. Things will get better. They think world buying will pick up and capacity utilization will increase to the point more machines and workers will be hired. The market is going up on anticipation.
Now you’ve got it. the bad news is good news in stock market
Understand why you want to invest. Ask yourself why you want to invest and what you expect to gain from it. The stock market can be very volatile, and a bad day could see you lose a significant part of your investment.
Good investors invest for the long term. If you are looking to cash in right away, the stock market might not be a good place to put your money.
Don’t invest if you are trying to get out of debt. Make sure any high-interest debts are taken care of before investing in the stock market.
Is the Company Profitable?
This is also a simple question, which can be made more complicated by all sorts of variations on a company’s earnings. Investors can read the quarterly and annual earnings reports to check out how much net income the company reported, in dollars and in per-share earnings. Later down in this column we’ll address ways to mine for red flags in earnings.
William is an investment advisor and has been writing about objective, methodical approaches to investing for over 10 years. He has helped hundreds of people make better investment decisions. To find out more about his approach and his FREE Newsletter, please visit: www.baydailynews.com;