| Stock Market Giants All Do This |
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| Written by Michael Swanson |
| Sunday, 25 October 2009 17:06 |
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Anyone with any margin of success in stock market investing pays very strict attention to his stocks using technical analysis. Watching the ups and downs of stock prices is the most important element of playing the market.
Anyone with any margin of success in stock market investing pays very strict attention to his stocks using technical analysis. Watching the ups and downs of stock prices is the most important element of playing the market. Watching your stocks has to be a daily habit. Check the stock market listings in the business section of your paper daily and double check for the most up-to-the-minute prices on the internet. Keep track of the history of your stocks and follow every rise, every fall and the fluctuations in between. It's a good idea to track the performance of your stocks by reading the monthly statements sent by your broker. Use the Internet to keep abreast of stock prices in the interim. Stocks that have caught your eye should be monitored before you buy them. Monitor those stocks and watch when they go up or down. Establishing a pattern of highs and lows will make the decision to buy a little easier. Stocks that are growing nicely should be added to when you have some extra cash to invest. Remember to diversify your investments. Like the old adage says, don't put all your eggs in one basket, because if that basket falls, everything is broken. Do you know your broker's phone number? If you're paying close attention to your stocks, you'll know when it's time to buy or sell and you'll want to act fast. Instruct your broker as to what to do as well as a price. Everything can be handled by the broker. All you need is a confirmation number when the deal is complete. The Wall Street Journal or Barrons are both excellent reading materials for those who want to keep close tabs on the market. The information in these publications will let you know about events that shape stock market prices. It's important to monitor your stocks because the market can be extremely volatile. The performance of your stock should be evaluated over time. Don't automatically sell your stock if you notice that the price is falling. Keep a three year horizon in mind. If you're in day trading, you know how hard that constant attention can be, however, it can be very lucrative for sophisticated investors. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. For more articles from Mike Swanson sign up to his WallStreetWindow weekly newsletter. |