Picking Sound Investments

By
www.ProfitableInvestingTips.com

PICKING SOUND INVESTMENTS

http://www.profitableinvestingtips.com/investing-trading/picking-sound-investments

THE KEYS TO PICKING SOUND
INVESTMENTS ARE FUNDAMENTAL
ANALYSIS AND TIMING


FUNDAMENTAL ANALYSIS REVEALS
THE INTRINSIC VALUE OF A STOCK
AND ITS MARGIN OF SAFETY.


TECHNICAL ANALYSIS REVEALS
CURRENT MARKET SENTIMENT AND
OFTEN ALLOWS INVESTORS TO BUY
OR SELL STOCKS AT THE OPTIMAL
PRICE.


PICKING SOUNDS
INVESTMENTS FOR
THE LONG TERM


RATE OF RETURN ON
INVESTMENT


OVER THE LONG TERM AN
INVESTOR NEEDS TO MAKE MONEY,
MORE THAN THE RATE OF
INFLATION, AND ENOUGH TO
JUSTIFY THE EFFORT INVOLVED IN
PICKING STOCKS AND MANAGING A
PORTFOLIO.


SOUND INVESTMENT ADVICE IS TO
HAVE AT LEAST PART OF YOUR
PORTFOLIO IN STOCKS THAT
APPRECIATE EVERY YEAR,
DIVIDEND STOCKS WITH A GOOD
RETURN, AND STOCKS WITH A
STRONG MARGIN OF SAFETY THAT
WILL PROTECT YOUR INVESTMENT
DURING HARD ECONOMIC TIMES.


THE MIRACLE OF COMPOUNDED
RETURNS CAN TURN A HUNDRED
DOLLAR A YEAR INVESTMENT INTO
$32,000 OVER AN INVESTMENT
LIFETIME WITH A TEN PERCENT PER
YEAR APPRECIATION.


THE KEY TO MAKING THIS WORK IS
PICKING SOUND INVESTMENTS IN
STRONG COMPANIES WITH THE
ABILITY TO FIND AND MARKET NEW
PRODUCTS YEAR AFTER YEAR
AFTER YEAR.


VERSUS RATE OF
INTEREST ON DEBT


WITH CREDIT CARD INTEREST
RATES IN THE 18% RANGE OR
WORSE IT MAKES EXCELLENT
SENSE TO RID YOURSELF OF SUCH
DEBT BEFORE PICKING SOUND
INVESTMENTS IN STOCKS.


HOWEVER, THE PRACTICE OF
PICKING STOCKS, BUYING STOCKS,
AND MANAGING A STOCK
PORTFOLIO TAKES TIME TO LEARN.


AN ALTERNATIVE ROUTE IS TO
PRACTICE PICKING SOUND
INVESTMENTS AND PUTTING A
PORTION OF AVAILABLE CASH INTO
THESE INVESTMENTS WHILE
WORKING PRIMARILY TO REDUCE
BURDENSOME DEBT.


BY THE TIME THAT YOU HAVE
GOTTEN RID OF CREDIT CARD DEBT
YOU WILL HOPEFULLY HAVE
LEARNED SOMETHING ABOUT
PICKING SOUND INVESTMENTS FOR
THE LONG TERM.


WHAT DOES THE
FUTURE HOLD?


ANYONE WHO TRULY SAW THE
FUTURE WOULD HAVE INVESTED
HEAVILY IN MICROSOFT THE
MOMENT IT BECAME PUBLIC IN 1986.


THE STOCK IS MORE TWENTY
THOUSAND TIMES AS VALUABLE
TODAY AS IT WAS WHEN FIRST
ISSUED.


THIS HAS TO DO WITH THE RISE OF
THE PERSONAL COMPUTER,
ASSOCIATED SOFTWARE, AND
COMPUTING SERVICES.


THE SAME COULD HAVE BEEN TRUE
FOR ANYONE WHO INVESTED IN
APPLE THE MOMENT THAT STEVE
JOBS CAME BACK.


PICKING SOUND INVESTMENTS
OFTEN HAS TO DO WITH
RECOGNIZING THE POTENTIAL IN A
GROWING INDUSTRY AND DOING
THE RESEARCH NECESSARY TO
DISCOVER WHICH COMPANY WILL
BEAT ALL OF THE OTHERS IN
MARKET PENETRATION, SALES, AND
PROFITS.


RECOGNIZING PRODUCT POTENTIAL
AND RECOGNIZING THE ABILITY OF
A COMPANY TO ESSENTIALLY SET
ITS OWN PRICE IS EXTREMELY
VALUABLE IN PICKING SOUND
INVESTMENTS.


WHEN TO GET IN AND
WHEN TO GET OUT


YEARS AGO THE RETAIL GIANT,
SEARS, WAS ON ITS LAST LEGS.


IT BECAME A PENNY STOCK AND
WAS BOUGHT BY KMART IN 2005
AND BECAME SEARS HOLDING
COMPANY. MOST INVESTORS DIDN’T
THINK MUCH OF THE NEW
COMPANY’S PROSPECTS.


THE PROBLEM WAS THAT
INVESTORS WERE VALUING SEARS
AS A RETAILER.


WHEN VALUED AS A REAL ESTATE
COMPANY THE COMPANY WAS
MUCH MORE VALUABLE. WHEN THE
MARKET CAUGHT ON TO THE HUGE
MARGIN OF SAFETY IN REAL ESTATE
THAT SEARS HELD THE STOCK
SOARED.


RECOGNIZING VALUE BEFORE THE
REST OF THE MARKET DOES IS
OFTEN A KEY TO LEARNING HOW TO
INVEST AND PICKING SOUND
INVESTMENTS.

Picking Sound Investments

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