• First in 8 Tips for Stock Market Investing. When Volatility Index (VIX) drops below 10, US market is seen as safe to invest in. An image of Volatility index history is further below for reference.
• For long term investing buy 10 – 15 different stocks, only allocate a maximum of 15% to each stock.
• Buy Value Stocks. Value stocks usually have a low P/E ratio and a low Price-to-NTA ratio. Sell Overvalued stocks.
• Micro-cap stocks can have a annual return of 30-50% annually for 10years. WARNING: Very High risk!
• Investing in Utilities are seen as safer during market downturns and should maintain dividend payouts.
• Fundamental analysis is most often used when determining the quality of long-term investments in a wide array of securities and markets, while technical analysis is used more in the review of short-term investment decisions such as active trading of stocks.
• Profits should be taken when a stock rises 20% to 25% past a buy point. But hold out longer if a stock jumps more than 20% from a breakout point in three weeks or less. These fast movers should be held for a minimum of 8 weeks. Lastly it is appropriate to sell stock, if a better opportunity comes along, or after a merger.
• For those who don’t want to risk large sums of money, or are new to investing, but are looking for diversify, you could invest in Exchange traded funds.
8 Great Tips For Stock Market Investing Conclusion
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