Sunday, April 12, 2009

Daily Stock Market Recommendations

Daily stock market recommendations are a regular part of some TV talk shows, newspapers devote pages to them, and the Internet has dozens of companies offering advice on where an investor should place his funds for the greatest return. Daily stock market picks by individuals is a common way for investment decisions to be made. For a great many people who want to invest for their future, these decisions are left to a broker they have entrusted with handling their finances so that they don't have to bother with making the picks themselves. Since it takes some study to understand the stock market and how it works, it makes sense for most of us to let someone who has already learned how to get through the twists and turns of the investment maze to do the job for us. 

An investor can find a plethora of books and courses to teach him how to make sound investments via the daily stock market recommendations. Anyone can learn how experts in the field make their decisions by reading these resources, and at the same time, the investor can take time to observe the experts in the field simply by watching the daily price changes. Noticing what's going in in the culture is also a good way of keeping in touch with the markets. For example, a recent ad on national television shows a teen-age girl asking her father for money for a pair of jeans in a certain brand name. He immediately asks her if all her friends are wearing them. When she tells him, "Yes, they are", he immediately goes to his computer, brings up his investment site, and invests in that particular company. This may just be a fictional representation, but on the other hand, knowing where the markets are heading may include keeping a pulse beat on day-to-day buying decisions of consumers. To be successful in the market means knowing when to buy and when to sell. If an investor has contact with someone "in the know" who can guide him in making recommendations, he may have a better chance of doing well than someone who haphazardly purchases stock without considering cultural influences.

Few people actually buy that frequently. Most watch for a while and see if a particular company's worth continues to climb before making a purchase. There are those experts in the financial world who make future predictions based on daily stock market picks. Others will advise the public on exactly how to make money by following their daily stock market recommendations. Many small groups exist who watch the trends and make daily stock market picks for their mutual investments, and some of them are quite successful. 

The existence of the stock market is probably the most conspicuous sign of a free enterprise society. It allows many people to invest in a company's future and share the gains and losses of that company. Daily stock market recommendations are often based on how well a company is being run, and that in turn is often based on the demands of the stockholders when they feel the company needs to change course. Companies normally don't consult stockholders, but business leaders do react to the negative responses of stockholders to business policies. Every company wants to make a profit, and the larger the profit, the better for the company, its employees, and its stockholders. Most companies now included in the exchanges began as partnerships, group-owned, or sole-proprietorship companies. When they reached a certain level of success, they "went public" and sold shares of stock in the company. As a company grows and profits are made, the word gets around and the profitable company looks forward to becoming one of the daily stock market recommendations. 

Some people make a game of trading on the market. They have money to spare and will invest in a new company started by a local businessman who has shown good business sense. This investment gives that new company a financial boost while allowing the investor to share in its future success. That type of investor won't be seriously hurt, however, if he loses his money while taking risks. On the other hand, avoid being the type of investor who risks what he doesn't have. The first rule when investing, whether it is with a group or as an individual, is that the investor must have some money to risk. Never should someone use the grocery money to invest in the markets, even when he trusts an expert's daily stock market picks. Like gamblers, these foolish individuals are more focused on the game than the profits. Psalm 39:6 describes this person like this: "He heapeth up riches, and knoweth not who shall gather them." The stock market is an important part of the business community and is intended to promote the welfare of all participants. But like any other resource we own, it must be controlled under the guidance of God's wisdom.

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