Thursday, 27 October 2011

Investing in stock market




Investing in stock market
If you have good income and enough  money to invest, did you need to learn how to invest in stock market. Unfortunately most of people lean investing in it by hard way ;by trial and error.

My experience in trading in stock market since 1970.with advice of my broker I made my first five investments. Little amount of money I made on one of stocks and the other four turned out to be loser . year after year from working with some different broker i learned that brokers not only sales men that are make an recommending to the stocks that their company or firm is recommend. Consistently most of this recommendations will outperform the S&P 500 benchmark. The broker much tell you what to buy but little tell you this is time to sell.
Some people invest depending  on the basis of  rumors they have heard . this is the worst way to invest . and others to come up with their investment  ideas watch CNBC, but actually it's like the rope in a game of tug-of-war . one guru tell buy and the other after ten minute tell sell.
Obviously , there are many other ways make  people make their investment decisions . I believe that the best way to invest in the stock market is to trade Exchange Traded Funds or No Load Mutual Funds. These investment vehicles provide excellent diversification since each ETF or Fund holds an entire portfolio of many different stocks. The firm that manage the ETF or Mutual Funds have large staff of analysts that make big studies on the companies. They examine market research on the companies' products, visit factories and interview key executives . they have real time computer and have worldwide source of information and data .Since I began to invest on ETFs I note that my investment performance is improved , in fact by a wide margin I consistently outperform S&P 500. My robust trading system is the key to Rebound Mutual Fund Trader , I generated annually rate of return 32% this is triple of S&P 500 for the same period. The subscribes in this system can doubled their money in 32 month.
You will take all of emotions out of trading if you trading with trading system that has stood the test of time. Two powerful forces we are torn between them greed and fear. There is no emotions controlling in trading if you use a robust trading system , system say buy we buy system say sell we sell.no guessing the system , we sure that it ignore the signals that may be make a mistake.
Using losses stop and profit protect aid you to make relativity small loss and take you profit if the profit protect level is hit .

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