There are no shortcuts to stock trading success. You cannot find a magic bullet to show which stock is best to trade. There are also no notification systems that can tell when to sell or buy. Sometimes, the market is able to raise the value of a great growth stock beyond what it offers. It is possible to know when a stock’s intrinsic value is very high and it will make a profit but the investment timeline for that stock is far too long. The stock market is full of different options. This makes it difficult to find stocks that work well for you.
The pulse: A finger on the pulse
Reactionary market conditions can be unpredictable and constantly changing. Even small events and announcements made in the industry or politics can have major consequences for the stock market. Likewise, global incidents and significant actions—such as China’s sudden regulatory assault on digital giants like Alibaba Group Holding Limited (NASDAQ: BABA)—could shake investor confidence and cause stock values to plummet. Studies have been done to examine how weather affects traders’ moods and stock market movement. Trader need to learn how historic events have influenced the markets in the past and identify factors that influence current markets. Trading should be seen as an ongoing learning experience that allows you to better understand specific stocks and markets.
Similar to choosing a life partner, being familiar with a company’s financial history is not enough. It is important to learn about the company’s directors, partners and intrinsic value. As mentioned above, the prime example is Hot Stock RoundupXenetic Biosciences Inc. is (NASDAQ: XBIO). Xenetic’s value increased by more than 146 percent after Takeda Pharmaceuticals Co. Ltd. (NYSE: TAK) broke ground on an expansion plan. Unless traders had researched Xenetic thoroughly and were aware of their exclusive license agreement with Takeda, they would not have known that Takeda’s $126 million investment in a state-of-the-art manufacturing facility would mean possible enhanced business growth for Xenetic.
It is worthwhile to spend the time studying how markets work. This will allow traders to be more flexible in other markets, and to develop trading plans that are based on factual information. You can find a wide range of resources online, including podcasts and blogs, that can assist you in determining which stocks are important. This stock watchlist is often compiled and maintained by experienced traders, who are always on the cutting edge of market changes. Traders will be able to get an overall view of market mood and plan when they should buy or sell. While many stocks are not traded, traders can still monitor them and improve their trading skills.
Wealth comes from health
Although there are many industries to invest in, the top three sectors that remain most prominent and trustworthy are consumer staples, healthcare, and information technology. All of us need food, water, and to stay healthy. It is always good to include at least one sector in an investment plan. Despite being challenged by logistical and manufacturing issues throughout the pandemic it managed to gain an edge. Healthcare products and services are in high demand due to ongoing epidemics and the aging population of many countries. The demand goes beyond traditional healthcare. It also extends into other market segments like mHealth or insurance. Therefore, it’s prudent to maintain a top list of healthcare stocks to monitor.
Healthcare investing is a great investment because it’s always relevant. Even though pharmaceuticals are in the limelight lately, they may not be the most profitable investments. Intuitive Surgical, Inc., (NASDAQ: ISRG), is a great example. Intuitive creates precision robotics designed for minimally invasive surgeries. Although it is not well-known, the company is not particularly fashionable. The robotic surgical system is used in operating rooms since over 20 years. Intuitive has also been constantly improving and updating its product to keep it in the forefront of the market. With the decline of the pandemic and the return of elective surgeries, Intuitive’s robots are back in the business and their stock has been on the rise.
It’s as much about your trading style as about the markets. Finding the perfect stock for you is key to trading success, no matter what your preferences are. Even though some stocks are more profitable than others, you will most likely lose if your trading style changes. You can identify great opportunities by sticking with your trade plan, and monitoring key stocks closely to ensure you strike the right stock at the perfect time.
Tips to Successful Stock Trading was originally published by Enterprise Podcast Network – EPN.