How to Manage Your Stocks?

 

Managing Your Stocks: 5 Considerations!

Although, some politicians, etc., emphasize how the stock market works, rather than broadly - the picture / scope, of the general economy, it seems that very few are well-prepared, and / or, ready to manage the basic needs, to invest in stocks. It takes an open mind, and the ability to focus, more on reality, than emotions, and consider, the various, possible, appropriate things! Having been a registered attorney, and Principal, of investment companies, for a long time, I feel, strongly, potential investors (especially, in the stock market), should be sensible, consider this diversity, and continue, in a smart, and very focused way. With that in mind, this article will try, briefly, look at, evaluate, review and discuss, the five most important things, when it comes to stock / investment management.

1. Analyze the foundations / finances: Unfortunately, as in most cases, these days, most people, too, rely on the analysis / opinions of others, instead of scrutinizing, the foundations of a particular organization, and what the researched, financial statements mean, and represent. Read books, take lessons, and understand, key words. Know, read, and understand, budgets, and financial statements. Why do analysts, forecasts, or analysts? Try to differentiate, emotions, from perception, from the beginning!

2. What should you do when the stock price rises? What should one do, when the price of a particular stock rises, after buying it? Ask yourself, if you could not, if you did not have, would you buy, at a higher price? If the answer is yes, buy more shares! If not, sell your own? If you are unsure, then, it makes sense, to hold, or sell, one of these, to make sure you do not lose money, if / when, prices fall! Be purposeful!

3. The stock price remains stable! Don't fall into the trap of being, emotionally - sticking to a certain stock, but, after a while, time, imagine that, and, if you were investing, it would have been hard-earned money, in this organization! If, yes, hold, and consider, buy more shares, but, if not, sell, remove your position!

4. Stocks go down: What should you do, if they go down, in price? Some, shocked, and immediately, or, sell - off, or think, to do so! While that might be wise, in some cases, the smartest way, is, again, to ask yourself, if you still believe in a certain company, and, if, perhaps, you should, invest more stocks!

5. Short, medium, or long term: Think about whether you are looking, in particular, for short / quick, over, medium, and / or, long-term results? Know, and remember, why you bought? Is it your goal, growth, or your income, or a combination? Are the goals / objectives / expectations, somehow - reasonable?

Before investing, fully understand, what the main ideas are, what they could be, and your comfort zone! Always think about this, and the potential for risk / reward!