FAP Turbo

Make Over 90% Winning Trades Now!

Wednesday, July 22, 2009

Hot Stocks are A Winning Gamble

By Hannah Page

The is a new game in the stock market these days called hot stocks. This goes against the standard Wall St. Recommendation of buy low and sell high. The new hot stocks strategy is to buy high and sell even higher. The way it works is that you buy stocks that are rising in worth and sell them while they are still rising. The time between the buy and the sale is short.

Rather than purchasing undervalued stocks and waiting weeks or months for them to rise in value, with the hot stocks approach, you purchase stocks that are rising in value. Rather than holding the stocks, you wait only a short while and sell them when their value is higher than the price you paid. You turn a fast profit.

This investment plan is especially suited to day traders. You have to be conscious of the market trends and select stocks that are showing an obvious steady increase. Buy the stock and after it rises enough to give you a profit, sell it. Don't feel tempted to keep hold of it beyond making a good profit. This is a method, not a get wealthy fast scheme.

If you chance to pick a stock that starts to stagnate or drop in price, sell it straight away, even if you have to take a loss. Never think the stock will recover and you will get your investment back. If it drops lower you will lose even more. The concept is to maximise your gains and keep your losses as small as possible.

Hot stocks are brief investments and shouldn't be held onto for at least a day or 2. Keep on top of the market trends and your stock costs so you can sell at the most advantageous time. This strategy of investment has risks and infrequently you will lose. That is's alright. The most important thing is to chose more winners than losers.

You would not go to Vegas and put all your money on the roulette wheel, and you shouldn't put all your investment capital into hot stocks. This is one of many financial techniques you need to use to raise your money. A solid diversified portfolio will protect your capital, although the returns could be significantly lower. Long-term investments should be the cake of your investments. Hot stocks are the topping.

Hot stocks only work as a short term investment. These are stocks which should be purchased and sold in less than a week. If the stock continues to rise after you sell, that's's OK, you definitely made a profit. The stock could just as easily drop in price.

If you are paying a brokerage for your investments, hot stocks isn't an option for you. Brokerage costs can swiftly swallow your profits. Look into online stock services that charge a set weekly or regular charge for unlimited trades. Trans action charges can be very costly. Let your brokerage firm handle your long term investments, take care of your hot stocks yourself.

Everybody know that you can make money on the stock market. The trick is to invest wisely. Using different monetary instruments and expanding your investments helps grow your money while defending your principal. If you can't afford to bet, don't play. While the stock market trumps Vegas, the percentages will not always be in your favor. Hot stocks are a neat way to play the market, they just are not the only way. - 23221

About the Author:

0 Comments:

Post a Comment

Subscribe to Post Comments [Atom]

<< Home