Stock market investment strategy

scheng1 By scheng1, 12th Jun 2010 | Follow this author | RSS Feed
Posted in Wikinut>Money>Investing

Do you know how to get rich from stock market investment? Do you have a workable stock market investment strategy?

There are many books written about stock market investment strategy.

Stock market investment strategy

Many of us know about the stock market investment strategy that Warren Buffett used.

If you do not know the meaning of intrinsic value, you need to read through the annual reports written by him.

Understanding the concept of intrinsic value is the key to formulating a stock market investment strategy. Intrinsic value basically means to estimate the earning potential of a company. You need to estimate the future earnings, and convert the earnings into the dollar value today.

It is similar to looking at the brightest student in college and trying to estimate his lifetime earnings. While different persons have different figures, a good company is worthy of your investment.

That is the best stock market investment strategy.

However, for many people, they use different stock market investment strategy. Some people accept the May November stock market investment strategy. This stock market investment strategy means to buy stocks in November and sell everything in May.

While this seems to work in certain years, it is not workable when the economy is in a recession.

Most investors use the technical analysis as the stock market investment strategy. They do not like the idea of spending hours and hours reading the analyst reports.

They do not even want to study the annual reports.

They just want to know when to buy and when to sell.

Technical analysis provides them a basis to choose a stock to buy and a time to sell. That is why technical analysis method is the preferred stock market investment strategy for many people.

What is your stock market investment strategy? Have you decided how you want to get rich? You need to find a workable stock market investment strategy in order to get rich from investing.

There is no single strategy that works 100% all the time. Each method works for different people.

Even if you are not going to get as rich as Warren Buffett, you can become richer than your friends who do not participate in stock investing.

About me:

Scheng1 is a passionate blogger from Singapore. Rich in every sense reveals my deep desire in enjoying life, and be rich in every possible ways. Personal Finance is about money, from making money to investing money

Tags

Stock Market, Stock Market Investment, Stock Market Investment Strategy, Stock Market Trading, Stock Trading

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author avatar scheng1
About me:

Scheng1 is a passionate blogger from Singapore. Rich in every sense reveals my deep desire in enjoying life, and be rich in every possible ways. [link=http://howhealthyisyourpersonalfina...(more)

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author avatar Stock market tips
27th Sep 2011 (#)

Very good post, I was really searching for this topic, as I wanted this topic to understand completely and it is also very rare in internet, that is why it was very difficult to understand.

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