Stock Investment – Buying and Holding Vs Time

The most important factor in the success of the stock market is the control of risk. Risks, of course, include not only the likelihood that you will lose money, but also the possibility that you will miss an opportunity to make money.

Sensitive Stock Investors use a variety of methods to manage risk. One of them is time. Time means choosing the best time to trade – buy or sell.

Many equity investment literature consider timing as a risk control measure. Most consultants focus only on asset allocation and diversification. For example, whenever you see statistical information about how much you cost, you should "recommend long-term performance statistics based on these asset types in terms of large-cap stocks, small-cap stocks, bonds, cash, etc. In other words,

However, the use of time as an additional method to control risk is ignored or criticized as impossibility.

However, for sensitive stocks Investors, time, that is, not buying and holding everything, is an effective risk control technology.Statistically, when the stock fell, do not invest in stocks, the positive return for the contribution is far greater than the time of full investment.

Time can be used for buying and selling decisions.It helps to determine when to buy stocks (thus reducing your risk of missing an opportunity to make money) But also helps determine when to sell it (thus reducing the risk of losing money you will stock.) Even Warren Buffett – who has a lot of time with refusal to buy and hold practice related. There are plenty of his assets waiting The right time to buy.

Therefore, timing is a tool for sensitive stock investors to implement the risk management toolkit. It does not completely control the purchase, hold and sell decisions, but it does affect them. Yes, when there is a greater chance of profit, there are more of your money in the market, when there is a greater chance of loss when investing less. The whole idea is to stack odds as much as possible.

Time is based on the & lt; index. & Nbsp; & nbsp; & nbsp; & nbsp; Indicators are only information that may predict future performance .Therefore, they are signals to buy, hold or sell.

Because individual investors can not spend a whole day researching the market, they can not invest enough money in the market to do so. , Personal best indicators must be (1) easy to obtain, (2) free, and (3) easy to understand.We have found that we can find such indicators without too much trouble.

Such as broad market trends, broad market valuations, individual stock movements and valuations, economic trends, and interest rates. As a result, a simple set of such indicators can be obtained for free and combined in a rational manner, (19459003)

Sensitive Stock Investors then use the time outlook to influence (but not to) the amount of time spent on the stock market, and to keep it up to date with relatively little time spent and no money to spend. Completely decides) his or her decision on when and whether to buy, hold or sell a particular stock. Timing Outlook is used in conjunction with other tools for Sensitive Stock Investing. The entire toolkit – selecting good companies, valuing their stocks, maintaining a comprehensive portfolio, using sells, and so on – creates a mesh of sound complementary technologies. These technologies deliver superior results, primarily because they help you manage your investment risk.

A word about psychology: not in the heat of a rapidly changing market. Psychologically, it may be difficult to follow any system that gives a seemingly intuitive signal. But that's why you have a system in the first place: so you can follow it when objective thinking is the most difficult. The time outlook helps to bring the emotion out of the equation. This is a good thing, because in finance and investment, emotions tend to point in the wrong direction. Horizontal mind usually wins.