There are good opportunities today.
Ordinary individual investors may not be able to get the best venture capital opportunities, but they do have access to listed companies, and there may be a history of stock growth that will only disappoint those investors who pay too much for stocks. These disappointing stocks often end up in the shadows and sell at low prices, which may represent great value.
The key to successful investment is low income
Investors who choose these stocks after the new issue become discouraged and sell after they fall 90% or more. These stocks are often interesting candidates for individual investors. One thing to note is that "these stocks usually take time to bottom out." In a study published in 1978 entitled "Non-random profit," author Ray Hanson, Jr. And Robert K. Mann found that before this inventory reached its lowest point, it usually took nearly three years for the price to rise.
Basic research is necessary
It must be determined that the best stocks in these stocks have great potential. The selected company may be developing a new biotech product that may be a leader in an unpopular industry or a new class of new companies. Understand the idea of investors when stocks are hot. Does it still have this potential? Often the potential they are looking for still exists, but it takes much more time and is much harder than they initially knew. Look at the financial situation. Don't choose heavily indebted stocks. Ensure that the company has sufficient capital. When the price is low, don't expect the company to succeed. You must purchase and take risks to get extraordinary returns. The agency wants to know more. Your advantage is to be able to act in front of the organization. After you have the inventory, please pay attention to the trigger event.
trigger event
Often, when these stocks emerge from the lowest price range, you may be able to identify one or more trigger events, bring your company to the spot, and bring in other investors, institutions, analysis reports, and more. You can add your assets to enhance your rewards before these. Make sure you follow the company's shareholder communications and public relations announcements to understand the company's agenda. Know when the company is giving a speech. Know when to release revenue. Know when the company plans equity financing.
Press release may be a sales opportunity
Often, news can make these stocks rise sharply and may represent an opportunity to get some profit from the desktop. News that is hopeful but does not change lives is usually a sell opportunity. Your earliest position should be held for three to four years, so some of your shares should be sold in the news.
exception
Do not use the concept of a low inventory base for regulated utility companies, investment companies, mining companies - basic and precious metals, pure commodity companies, and companies with operations outside the United States.
risk
The types of stocks we discuss usually have high volatility, usually 50% or higher. Risks can be adjusted through diversification, including stock types and the use of multiple stock strategies. The main key is to buy low prices. Chasing these stocks as these stocks rise rapidly will increase your risk. Selling a portion after a rapid price increase will reduce your risk. Regardless of the downturn in your core assets, it is expected and planned to maintain a core position of three to four years in these stocks, which can also reduce risk. Don't over-invest, use stocks to create positions by buying low prices during periods of weak stocks. We all know that past performance does not guarantee future results. Investment can result in losses rather than gains. Risk is a true part of equity investment.
reward
The study, "Non-random profit," published in 1978 identified 600 stocks we were discussing from 1936 to 1977. During these four decades, the average increase in stocks determined over the four-year period from the theoretical purchase date exceeded 300%. Since 1936-1975, there have been ten general purchase periods, approximately every four years, and a large number of qualified questions can be purchased. Since the publication in 1977-2012, many problems have been achieved with similar results.
The research report was discussed at http://www.elevenquarterstocks.com.
from
You can receive a copy of the study by calling 1-888-262-6587 EXT 8607 [24 hours a day].
Orignal From: Venture capital return of individual investors
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