Tuesday, January 13, 2009

Buying Stocks? Learn the Art of Timing Stock Market Investments

A stock is simply a form of a person's ownership and claims in an incorporated company.


A person who owns stocks in a company has a claim on its properties and profits.


Timing stock market investments affects the value of the stocks that are bought or sold in the market.


Market timing affects the profit returns of a buyer or a seller in the stock market.


It is also a method of strategic importance in the stock market.


Market timing is attributed to logic and can become an acquired skill.


Market timing determines whether a stock seller or a buyer will benefit monetarily or otherwise from his purchases or sales.


However, peaks and lows in the stock markets are unpredictable and irrational.


It is not advisable to ignore the times when there is significant undervaluation and overvaluation in the stock market.


To buy stocks which are guaranteed to peak while they are still selling low; and to sell high value stocks which are expected to fall.


Timing stock market investments can also be compared to stock picking, and the two concepts can go hand in hand.


If a stock market buyer or seller is an expert at timing stock market investments and stock picking, he must focus on sourcing stocks which are guaranteed to outperform.


  



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