Tens of millions of buyers put money into shares. How do they make their purchase and promote choices? What info do they think about? There are two fundamental approaches to inventory investing: the elemental method and the technical. Here is a down-to-earth comparability of the 2, plus some insights on learn how to make investments 주식.
What follows is the story of three legendary buyers, all of whom are within the means of studying learn how to make investments.
Torie makes her inventory investing choices based mostly on financial and monetary knowledge, elementary info. She is worried with future earnings prospects, P-E ratios, financial growth and so forth. She’s going to solely purchase a inventory if the basics look good.
She believes you can not predict future inventory costs, or the long run path of the inventory market basically. The inventory of a great strong firm ought to outperform in good occasions, and will maintain its personal in dangerous occasions. In the summertime of 2007 she discovered a monetary inventory she preferred and purchased some shares.
Drew takes a very completely different method to inventory investing, a technical method. He doesn’t take note of financial or monetary knowledge. He seldom is aware of or cares about what an organization does, or whether or not it’s worthwhile or not when he decides to put money into shares. As an alternative, he follows and interprets the value motion of the inventory market basically, and charts for particular person shares.
For instance, if he sees a crushed down inventory begin to take off on heavy buying and selling quantity, that will get his consideration. Drew believes that all the things that’s recognized about an organization is already mirrored within the value of its inventory. When the consensus of buyers like what they see, they purchase and ship the value of a refill. The pattern is your good friend, and Drew likes to drift. In the summertime of 2007 Drew jumped on a tech inventory that had all of the sudden taken off on excessive buying and selling quantity.
In early 2009, each Torie and Drew have been nonetheless holding their shares, with losses of effectively over 50%
Matt was nonetheless studying learn how to make investments, however had drawn 4 conclusions about inventory investing by the summer season of 2007. First, the promote choice is as necessary because the purchase choice while you put money into shares (possibly extra necessary). Second, take note of each elementary and technical info, particularly when the monetary information goes to the entrance web page. Third, inventory buyers can get emotional and ship the inventory market to extremes, both out of worry or greed. Fourth, rational buyers are likely to focus about six months into the long run.
In January of 2008, Matt offered just a few of the weakest shares he held for technical causes. The inventory market had been up for 5 years in a row, and was shedding momentum. In September he offered the remainder of his shares, because the financial and monetary information went from dangerous to worse (elementary info), and the inventory market was reacting by falling (technical).
Matt was keen to take a average loss, after having about 5 good years. By March of 2009, he was keen to guess that with shares off by 50% in a couple of 12 months and a half, that issues couldn’t get a lot worse. Regardless that each elementary and technical knowledge have been horrible, he made a plan. He would take his probabilities and guess that within the not-too-distant future the monetary disaster could be resolved for higher or for worse.
He didn’t promote the farm, nor would he leap into the inventory market abruptly. He would put money into levels, whether or not the market headed up or fell additional. The market may go decrease he knew, however he was keen to guess that ultimately greed would exchange worry when buyers noticed daylight sooner or later.
In the meantime, Torie and Drew had no plan, different to attend for his or her shares to return up.