Stock Portfolio :: essays papers

Stock Portfolio When setting up a occupation portfolio in that respect argon things one should look into. First off, one should k now what is currently happening, not alone in the parentage market, but in the parsimony as well. Researching stock indexes such as The Dow and the S&P vitamin D will give you general stock performance. The Dow Jones Industrial Average only tracks 30 large industrial firms in hopes of getting a esthesis of where the market is heading. The S&P 500, on the other hand, tracks 500 stocks which whitethorn give the investor a better overall picture of where the market is going. Which of all time the investor may choose to use, the idea is to find out whether stock prices are going up or down. Also important to know is maintain of the economy. Certain stocks tend to perform better or worse depending on the state of the economy. Knowing which stocks tend to perform well at a given state will serve well the investor choose which type of stock is b est for the given conditions. With that, it is time for the investor set a goal. Is the goal that of gip or long term success? Is there a peculiar(prenominal) rate of return you wish to achieve? Or do you merely wish to come out ahead? Once the goals are commit into place it is time for investment strategies. The investors goals will be key in helping plan the strategies for the investor. Now that there are goals in place, it is now time to look at the many investment strategies that will help accomplish the set goals. One of these strategies is known as the buy-and hold- schema. This strategy involves the investor to secure a stock and hold on to this stock for many geezerhood in hopes that over time the stock price will increase. This rule doesnt require untold timing of the market therefore is much less stressful making it a very desirable method. The reverse strategy is known as short term trading. This requires much aid to be paid to the Price and Volume of the stoc k, also knowing whether the stock is on an upward or downward trend. Another common strategy is known as short selling. This involves borrowing a stock from a broker at a given price and selling it, in hopes that the stock price will drop from the original price.