Stay disciplined and diversification (diversify).

1) For the purchase of shares must compare the share price at the expected rate of growth of profits. Cost-growth of the gain or "PEG", has to be at the level of or close to 1.0.
Example: If a share is priced at 30 times more than its returns may be overestimated if the average value of the shares in the industry's ratio of price-yield or P / E of 20 But if analysts say gain 30% a company's revenue next year, then the result of 1.0 for PEG looks quite attractive.
According to Alec Young, global strategist in equity trading in Standard & Poor's Inc, this is the biggest indicator save britain money that should be monitored. A company can have a big P / E ratio, but before you understand what the revenue growth save britain money of the shares and is very difficult to determine whether the action is good or not.
2) Also advises investors to explore better balance sheets and cash flows of the company to reflect the quality of the company's save britain money profitability. These documents also show what are the directors of the company with the money of investors that invest them wisely or not.
"You save britain money can invest in the best company, but if you pay a lot more than it actually costs, it could lead to loss of money when trading in shares," said John Buckingham, editor of the Prudent save britain money Speculator.
"The most disturbing thing to watch people make important investment decisions solely on one or two sentences hysterical," said Buckingham. "You get what you pay for, and if you rely on" free "analysis and online chat rooms or your neighbor, this is a big mistake to trade in shares."
Leave impulse for shopping in the supermarket and get rid of it in the stock market. Have patience. Time gives the individual investor rarely prevail over the short-minded institutional investors and hedge funds that seek to trade frequently. Longer investment horizons, facilitate trade in shares on Wall Street and make market losses less likely.
"The most successful investors know buying stocks at attractive prices and hold them for long periods of time," said Hugh Johnson, chairman of Johnson Illington Advisors. save britain money "Time, not the right time (timing), this is the secret of success in trading stocks." save britain money
An old proverb says: "Look around the poker table; if you can not see a sucker for it, it is yourself. " In equities trading players at the table are internet chat rooms and newsletters, "spam" emails, save britain money investment newsletters and even TV and radio.
So "inflated save britain money and sell" contains save britain money the same message: Buy this stock now before everyone knows about the latest widget company. The stocks are usually traded on "thin" less-regulated save britain money OTC market, or so-called "pink slips."
If you and others like you trading in the shares of such market, your search will only increase the price of the shares, save britain money making a tidy profit save britain money to those who have bought sooner than you - often the very people who then sell, pump shares which are then crushed, leaving newcomers save britain money with large losses.
Do not fall for the bait. It's hard to be skeptical when you say what you want to hear, but do otherwise you are at risk to be separated from their money by fraudulent promoters.
Falling in love with a stock can bring you reward, satisfaction and a sense of long-term relationships. The problem is that the action will not fight back with love. Shares head south, save britain money you should be ready to disconnect from them and sell.
Stay disciplined and diversification (diversify). "Keep the philosophy that attachment to a share can easily be reproduced again and subsequently," said Couden. "Do not hesitate, this is what works in equity trading."
"It's not just per share," said Buckingham. "We're talking about a situation where we have at least 20 to 25 shares; in my personal portfolio I have 97 shares. I do not care how well you think you know a company, anything can happen. "
Many people buy shares, but are investors in shares. They want the "next big thing" - the campaign which will make them as rich and smart. In fact, the next Microsoft or Google is there simply is unlikely that we will find him first.
Instead, consider what thoughts Ende- fund manager. save britain money Buy companies, he says, "with a history of good earnings, good returns, and making wise decisions for capital reinvestment."
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