Monday 28 November 2011

stock market expert

How does one choose the best stock? How does one time the stock market to make maximum returns? How does one double their money quick in the stock market? Volumes can cover trial and error methods of stock market investing and still not address these questions. As an investment adviser these are just a few questions that I came across on a daily basis. If I knew the answer to these I would be tanning in the Bahamas rather than spending a mundane workday answering the same questions day after day!The next important factor in determining what kind of stock to invest in is to identify the objective of the investment. Is the investor looking at companies that pay high dividends or companies with a high growth potential? Companies that do not pay regular dividends are not always undesirable as these usually plow back profits into expansion plans and other growth potentials resulting in more aggressive returns than a high dividend yielding stock. This decision would depend on the investor’s appetite for risk as taking higher risks have the potential to earn higher returns.
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