Wednesday, May 6, 2009

An opportunistic strategy for creating wealth in the stock market

What are the opportunistic features of a strategic investment plan built on a concrete foundation that would actually allow the shareholder to profit through all the upheaval of a stock market? The answer is simple. The opportunistic strategy for creating wealth in the stock market is based on two significant point and they are a plan and a goal. The plan must be a definite and concrete that would benefit you and your family for the rest of your lives and your goal should be clear and specific.

Begin your opportunistic investment plan with a mindset of not allowing anyone else to profit except a stockbroker, a mutual fund or a financial advisor. Another opportunistic trait that will create wealth for you is by investing in those companies that have an ability to raise its dividend every year, paired with stock appreciation. 
Investment is a statistics game and to stay ahead, make sure that your gains are more than your losses. According to several shareholder Fundamentals analysis is the best way to anticipate the future trends of a stock. After calculating the theoretical value of the company by using cash flow analysis, recent dividends and earnings, future dividends and earnings projections plus a host of other economic numbers the fundamental analyst would definitely buy this stock if he finds that the current stock price is lower than the calculated value. It is also said that fundamental analysis is difficult to learn for it to be useful as a forecasting tool. Understanding and analyzing balance sheets and profit and loss accounts is not enough to increase your revenue in the stock market but analyzing the micro and macroeconomic picture is also equally important. Another opportunistic strategy for creating wealth in the stock market is by opting for Technical analysis that employs graphic representations for prices and makes uses of various quantitative techniques to forecast price trends that tells us to buy when the trend is up, and when the trend is down, then look to sell. 

It is also recommended for the users of stock charts that only focus on daily charts, to pay equal attention to weekly as well as monthly charts, to achieve better results because it will give a clear picture of how the short, medium and long-term investors are viewing the markets. Remember that no single method of analyzing is sufficient for real-world investing but you can improve your investing skills by acquiring knowledge from other disciplines and sources.

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