Sunday 8 July 2012

Stock tips: patience and diversification.

By on 07:17

If the graphs of stock prices, especially in the live stock, can evoke an electrocardiogram particularly tumultuous one of the secrets of the trader is aware serenity. 

There are many theories about the stock market. One of them suggests a very simple system: invest a monthly sum to exactly the same same title. Regardless of the course (except abnormal decrease or increase), constantly reinvesting in the same way to minimize gaps purchase price and realize, ultimately, a very satisfactory average. 

With this technique, it is obviously not a question of enrichment overwhelming. But the stock market, for those who have a little practice, is often wrongly imagined as a place where fortunes are made and unmade. This may be true in the short term. But for those who know how to be patient, the stock market over the long term is almost invariably a winner. The monthly investment technique takes advantage of this feature. 

Principle known stock exchange, but always good to remember: do not bet all his money on one type of securities.The reason is obvious: if rapid decline in stock prices, the losses will be moderate with a well diversified portfolio, then they will be disastrous otherwise. 

To take full advantage of this trick, we must learn to consider all angles and hunt all common denominators. A portfolio consists exclusively of shares of a company is obviously a bad choice, but a portfolio that respects the principle of diversity while focusing exclusively on companies within a country or a region of the world is also an imprudence . In exchange, the "country risk" is real and must be taken into account. 

To further extend this notion of diversity, one trick is to avoid buying equities affecting the same area. For example, actions related to oil refineries and actions of an automobile manufacturer. For if the price of oil begins to burn, the course of these two types of securities is likely to collapse at the same time ... To attach your file exchange.

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