Those who want to invest are advised to practice before committing anything, no matter what strategy they use. Before risking your money, you should use stock market simulation game as it will help you to sell or buy stock in the real market. Trade or research as a person does normally, but it can save you to lose money.
In order to be successful investors, you should have the right experience and the right knowledge. There are many online investing games available that you can play to learn and practice in stocks for free. Not only these games, but an investment course can also help you a lot to understand as well as master investment strategies.
Investment is not something that an ordinary person can do and earn from it. Rather, it requires a proper research and analysis before putting your money at risk. The two general investment techniques are value investing and growth investing. The followings are some of the fast and easy tips to pick a stock on the value investment method.
This method is all about determining underlying assets of a company, their real wealth and to determine per share price. Value investors know that the value of underlying assets will fall for a few days, but in the long run, prices will be higher than their buying price.
Choosing stocks on such investment technique is one of the most effective methods. This strategy is not a fad and in our times Warrant Buffet is considered a successful and greatest investor and he proved this strategy always works. Buffet applied the strategy of his own company known as Berkshire Hathaway and his success turned the price of a share from $12 in 1997 to more than $218,010 per share. Yes! The price of one shares from 1997 to today in 2016.
Here are the 3 fast tips on value investing technique.
- The price of stocks should not be more than two third of their intrinsic value.
- The price of stocks should not be more than their book value.
- The growth of the company’s earnings should be positive for at least 3 continuous years.
Although there are some other tips as well, but the above mentioned 3 tips are very useful to motivate, guide and to learn a lot about the subject. You are advised to simply buy any investing course from Amazon or from a bookstore and then start learning about different strategies of investment.
Learning such courses will certainly lead you to become a successful value investor. There is no reason to wait and work for other companies if you can start earning more by investing in stocks by yourself. Read about the success of Warren Buffet and other famous investors as their success stories will motivate you to work hard on different stocks.
All you need to do is, read the financial statements of companies and do fundamental as well as technical analysis. These analyses will help you to determine above mentioned 3 points.