Jim Cramer
"As long as you enjoy investing, you'll be willing to do the homework
and stay in the game. That's why I try to make the show so entertaining,
because if you aren't interested, you'll either miss the opportunity to
make money in the market or not pay enough attention and end up losing
your shirt."
Think about your attitude when you were planning to buy a new Cellphone or a Computer or a LCD TV. Most people first research a lot about the various brands of products available in the market. They keenly scrutinize the features, performance level, popularity among others,value for money etc, before finalizing the product for them. This shows that people give a lot of time into research as they want to make the best use of the money they are going to spend
However it is has been largely noticed in case of stock market that most of the investors just do not mind investing their money without enough research done on the stock they are going to deal with. Each stock is said to have a personality of its own . This is largely dependent on many factors. Investing into a stock is just like investing into a business. Stock belongs to a company and its personality is quite dependent on the nature of performance of that particular company. The track record of the company through the Balance Sheet , Profit & Loss Account , Annual Results and Quarterly earnings reports, number of investors , proprietor's holding in the company etc., can broadly give a clear picture of the stock's performance in the past and its future expectations.
A thorough research about the stock with various technical and fundamental parameters put into use can give a good idea that whether that investment will be a good deal for the investor or not. Merely enthused by some promising article , rumour or recommendation and investing into a stock may give drastic results. Equity investing without research is just like playing a game in a casino which merely is a misuse of money.
Same kind of research based analysis is valid in the case of trading of stocks in short term periods as is needed for long term investing . Some stocks are more likely to give good opportunities of trading in comparison to other stocks. Before taking a plunge into trading a trader must give enough time for research of various stocks which will be best suited for his/her style of trading. Trader needs to exploit the movement of the stocks which give the opportunity to trade and this movement is largely dependent on the personality of the stock. So first target of trader is to find appropriate stocks to trade and then next step will be to trade in them.
Think about your attitude when you were planning to buy a new Cellphone or a Computer or a LCD TV. Most people first research a lot about the various brands of products available in the market. They keenly scrutinize the features, performance level, popularity among others,value for money etc, before finalizing the product for them. This shows that people give a lot of time into research as they want to make the best use of the money they are going to spend
However it is has been largely noticed in case of stock market that most of the investors just do not mind investing their money without enough research done on the stock they are going to deal with. Each stock is said to have a personality of its own . This is largely dependent on many factors. Investing into a stock is just like investing into a business. Stock belongs to a company and its personality is quite dependent on the nature of performance of that particular company. The track record of the company through the Balance Sheet , Profit & Loss Account , Annual Results and Quarterly earnings reports, number of investors , proprietor's holding in the company etc., can broadly give a clear picture of the stock's performance in the past and its future expectations.
A thorough research about the stock with various technical and fundamental parameters put into use can give a good idea that whether that investment will be a good deal for the investor or not. Merely enthused by some promising article , rumour or recommendation and investing into a stock may give drastic results. Equity investing without research is just like playing a game in a casino which merely is a misuse of money.
Same kind of research based analysis is valid in the case of trading of stocks in short term periods as is needed for long term investing . Some stocks are more likely to give good opportunities of trading in comparison to other stocks. Before taking a plunge into trading a trader must give enough time for research of various stocks which will be best suited for his/her style of trading. Trader needs to exploit the movement of the stocks which give the opportunity to trade and this movement is largely dependent on the personality of the stock. So first target of trader is to find appropriate stocks to trade and then next step will be to trade in them.
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