Short Term Investment
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There are two things a person may be looking for in a short term investment.
The other is a way to profit from the ups and downs of the stock market. The first just has to do with checking out interest rates on T Bills, CD’s, and other short term debt instruments. One is a place to park their money that is safe and pays better than a bank savings account. The second is where technical analysis tools such as Candlestick pattern formations can help a person to trade stocks and make a substantially better profit than the bank offers or even what one can gain from long term investing.
Short term investment in stocks can be extremely profitable. It can be more profitable, over the years, than long term investing. This is because the rate of return on long term stock investment is typically not linear. Market volatility, market trends, and market reversal all affect stock prices, even of the most stable of stocks. Doing basic and fundamental analysis of stocks and then reading market sentiment with Candlestick analysis gives traders and short term investors the ability to buy stock and sell stock at the most opportune times. Short term investment capitalizes on buying at the bottom of a price curve or short selling just as a market correction hits. Longer term investment depends upon analysis of intrinsic stock value and a stock’s margin of safety. Short term investment thrives on the precise analysis of stock price changes that Candlestick signals provide.
2. There are two things a person may be
looking for in a short term investment
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3. The other is a way to profit from the ups and
downs of the stock market.
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4. Before We Continue…
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5. The first just has to do with checking out
interest rates on T Bills, CD’s, and other
short term debt instruments.
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6. One is a place to park their money that is
safe and pays better than a bank savings
account.
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7. The second is where technical analysis tools
such as Candlestick pattern formations
can help a person to trade stocks and
make a substantially better profit than the
bank offers or even what one can gain
from long term investing.
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8. Short term investment in stocks can be
extremely profitable. It can be more
profitable, over the years, than long term
investing
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9. This is because the rate of return on long
term stock investment is typically not
linear.
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10. Market volatility, market trends, and market
reversal all affect stock prices, even of the
most stable of stocks.
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11. Doing basic and fundamental analysis of
stocks and then reading market sentiment
with Candlestick analysis gives traders
and short term investors the ability to buy
stock and sell stock at the most opportune
times.
www.CandlestickForums.com
12. Short term investment capitalizes on buying
at the bottom of a price curve or short
selling just as a market correction hits.
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13. Longer term investment depends upon
analysis of intrinsic stock value and a
stock’s margin of safety.
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14. Short term investment thrives on the precise
analysis of stock price changes that
Candlestick signals provide.
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15. How one approaches short term investment
will depend upon the investor’s time
frame. If an investor needs his funds in a
few days he probably should stick with a
money market account.
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16. If his time frame is a month and he
absolutely must have his initial capital he
probably ought to stay short term and deal
with his bank.
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17. Short term investment, for those with
investment capital, capitalizes on short
term movements in stocks and is not
simply a means of parking ones money
until it is needed for another purpose.
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18. That is not to say that short term investment
needs to be risky.
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19. The investor can choose conservative
investments.
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20. Short term investment uses options trading
to insure against risk while nailing down
market opportunity in stocks,
commodities, and futures.
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21. By buying puts or buying calls on a stock the
trader pays for the right but does not incur
any obligation to buy in the case of a call
option or sell in the case of a put option,
should the price of the stock move as
anticipated.
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22. He will use Candlestick patterns as a guide
to where the stock price will go next.
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23. He will trade options as a backup in order to
reduce investment risk.
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24. When the market moves as predicted by his
reading of Candlestick stock charts the
investor will make short term profits.
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25. If the anticipated stock price movement
does not materialize the short term
investment is only short the premium paid
for the option.
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