Knowing the potential volatility of the Valentines Day holiday, Im going to skip the candy and flowers and head straight to the heart of the matter, for lack of a better metaphor. Everyone can get behind the concept of money, right? As in, more money in your account? More money to console your lack-of-date-having self in Cancun for the weekend? More cash on hand for that inevitable ice cream/shoe-buying binge triggered by Mr. He Whos Name Will Not Be Mentioneds aversion to calling? In this sometimes cold, cruel world, its good to know that good stocks can sometimes replace the warm, cozy blanket of human interaction. Weve all heard the adage Buy and Hold. But what does that mean? Should you buy and hold regardless? How long is a good time to hold? Do you have to act like a day trader, checking ticker symbols every five minutes and acting like an over-caffeinated loony? If you are interested in getting involved in the stock market, a good place to start is Jim Gards The Small Investor Goes to Market. Its simple, easy to use, and wont throw any weird jargon at you. It gives step-by-step information about how to get involved in the market without reaching for the Tylenol, and provides a great jumping-in place for the novice investor. But what about that question of holding? Like all good relationships, a buy and hold stock has to be permitted to develop. Remember those first-date jitters, wanting to make a good impression? Thats like your stock, moments after you buy it. It may fumble the silverware at dinner (lose a few points in the market), take awhile to call you back (underperform), or even fail to hold the door open for you (definite downgrade). But imagine the huge smile on your face when he not only calls, but brings over two dozen roses. That could get Mr. He Whos Name Will Not Be Mentioned a buy rating, and a one-way ticket to Luckyville. Most stock analysts will not advise holding a stock for any particular interval of time. Instead, its important to observe the stock within the scope of the market. Is it considered a premium or recognizable brand? If so, its far more likely to have legs. How does the companys approach make this stock different, and more likely to succeed? Are they known as a stingy company, or somewhere people are proud to say they work? Seemingly small things like a companys image, or the perception consumers have, can drive the price of a stock, and determine its long-term worth in your portfolio. On that note, if youre looking for a helpful investing tool, try Black Box Investings subscription service. Subscribers receive conflictfree research (meaning Black Box has nothing to gain or lose by providing the information) on over 7,000 stocks. They provide technical analysis, using a stocks performance record to determine whether its likely to make you money in the future. I find this service absolutely invaluable to making some of my own stock decisions, and perhaps it can help you, too. Unless youd like to renew that Bitter, Table For One reservation for next year. For more stories, visit http://www.FindYourProsperity.com Copyright 2006 Find Your Prosperity.com |
