Stock market investment is a risky stance, but it should not stop any aspiring investor from taking the first step. The choice to make the stock market endeavor succeed lies upon the investor.

1. Knowledge

A wise investor would only delve into stock market investment upon being apprised with the necessary and crucial information. It is a must to invest on companies only upon learning everything about it, from its past records, current performance and future plans.

Stock market investment advice should be sought considering the difficulty of locating that right stock that will give big returns. The investor must fully know the fundamental value of the stock he or she will buy.

Invest in a company which belongs to a familiar industry. The stock market investor must have a good understanding of the business in order to realize more the value of the stocks. This will also make the investor less dependent to analysts and advisers.

The sources of information to rely upon must be carefully chosen too. Tips offered in the market should be avoided as much as possible. These are usually given by people with vested interests.

2. Long-term goal

An important consideration in stock market investment is setting a long-term goal. The long-term goal would determine the approaches to be taken and influence the decisions to be made.

The adherence to that goal would ensure regularity in instances of indecision when the stock market gyration comes to play. It would avoid whimsical decisions adversely disturbing the finances. A long-term goal could result to a more stable financial future through steady purchases investments. The key word here is consistency.

3. Calculated Risks

There are risks in any business endeavors. However, this must be calculated to minimize the probability of loss and to increase the expectation of profits. Speculating is not an option.

Never gamble and risk losing big money in the stock market. Investments should not rake in huge losses. It is easy to buy stocks, but money lost would be difficult to gain back. One cannot afford costly mistakes.

The established system in realizing the long-term goal must be strictly followed then. This will reduce the probability of putting too much money just to incur big losses.

5. Discipline

To make the most of the stock market investment, the investor himself must possess the proper determination and discipline to continually persevere in realizing the long-term goals set.

Stock market investment today requires passion and courage to come out as a winner. The stock market gives the opportunities; all that is required of the investor is being prudent.

by Jason Ng, Founder, Master ‘O’ Equity

FUNDAMENTAL ANALYSIS
A very surprising day at the markets today as the Dow rallies 68.34 points and the Nasdaq composite rallies 21.02 points despite a continuing barrage of bad news. Just when all hopes of a rate cut has been buried, a surge in jobless claims and rising oil price added early pressure to the market. However, it wasn’t long before a barrage of bargin hunters stormed the markets and lifted it throughout the trading session. Seriously, this kind of strong, systematic lifting of the market always make me think some big institution is behind it and the first one that comes to my mind is the Feds themselves. It is no secret that the Fed window has been systematically diverting big chunks of money into the market, as if in preparation for the baby boomers’ drawout of the market in the near future. Such systematic buying would definitely be able to lift the markets and make it look nice and rosy for now in order to continue attracting investors… that is definitely what the Feds want.

TECHNICAL ANALYSIS
What looked like a strong up day today was really just another sideways day. The Dow has opened and closed within yesterday’s trading range and the Nasdaq composite has not made a significant new high for the past 4 trading days. Volume was mediocre and momentum indicators are not showing a significant bullish momentum too. All in all, today’s rally look too much like a fake out to me. In fact, the Dow ended in a lower high and a lower low, which is a bearish sign. However, as long as it remains within the Secret Bullish Channel, it can still go up… but that does not mean it cannot break the channel to downside. That is the thing about channel analysis… it serves only as a guide. It is as good as looking as a train rail and guessing where a train might go, but lets not forget that trains sometimes de-rail too.

Thought For The Day : “Cutting Your Wins Short and Letting Your Loses Run Is Your Formula To FAILURE!”