mercredi 29 juillet 2009

Fast Profits With Hot Stocks

00:40 Posted by: Marokko Suche 0 comments

By Larry Watson

The is a new game in the stock exchange these days called hot stocks. This goes against the standard Wall St. Advice of buy low and sell high. The new hot stocks strategy is to buy high and sell even higher. The way it works is that you purchase stocks that are rising in value and sell them while they're still rising. The time between the buy and the sale is short.

Instead of purchasing undervalued stocks and waiting weeks or months for them to rise in price, with the hot stocks approach, you purchase stocks that are rising in value. Rather than holding the stocks, you wait only a short while and sell them when their value is higher than the price you paid. You turn a fast profit.

This investment plan is especially suited to day traders. You have got to be aware of the market trends and select stocks that are showing an obvious steady increase. Buy the stock and after it rises enough to give you a profit, sell it. Don't be tempted to hold onto it beyond making an honest profit. This is a strategy, not a get rich fast scheme.

If you chose a hot stock that turns out not to be so hot, shed it right away even if you have got to sell at a loss. Holding on to the stock after it starts to drop could bring a much bigger loss. The stock market is a gamble and occasionally you lose. Minimize your losses.

With hot stocks, you will opt to buy and sell a specific stock in one day. To make use of this method of stocking trading, you've got to keep on top of your investments and watch the stocks closely. Study market trends. When a stock drops, sell it straight away. Don't get greedy or use the old gamblers instinct that tells you you can still come out ahead. You can't on this one stock, but their are plenty of others.

You would not go to Vegas and put all your money on the roulette wheel, and you shouldn't put all your investment capital into hot stocks. This is one of many financial techniques you must use to enhance your cash. A solid diversified portfolio will protect your capital, although the returns could be lower. Long term investments should be the cake of your investments. Hot stocks are the topping.

These stocks are planned to be very short term investments. Never hold onto a hot stock for at least a few days. You sold and the stock continued to rise, you feel like you been unprofitable. You made money, the undeniable fact that the stock continued to rise failed to cost you anything.

Many speculators use a broker to buy and sell stocks. Hot stock investing isn't engineered to be used with a broker. If you have to pay a broker's fee for each transaction, hot stocks could cost you more than you are making from them. Online services for buying and selling stocks are better suited to this investment strategy. Look into paths to duck brokerage charges if you intend to add hot stocks to your investments.

the market is a great way to grow your investments. Hot stocks is one way to make reasonable profits in a short period of time. When investing your money always use more than one method and make sure that at least part of your money is in a safe, if low yield, financial instrument. Never bet on the market with money you can't afford to lose. Remember the old Wall St. Saying" sometimes you eat the bear, and often the bear eats you." Good luck!

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