This Blog is also available as an RSS Feed

Markets - Editor, 20 March 2008 - 1 Comment

The A, B, and W of Stocks



Editor
» About this writer

Adversity makes us return to basics. This seems to be an appropriate juncture to revise stock investment basics. Are you an alpha or a beta person? Sure, all of us do a little bit of both during pitches on a stock market mound. However, it is like an intimate preference: you have to prefer either the alpha or the beta approach.

Let us go to the other end of the alphabet. Buffet is also a Warren. So let the W choose between alpha and beta. The stock Guru is clear on his personal preference (for stock investing). It is the alpha route for him. Now that could be because he has hot shots from the top business schools on his payroll. Are you condemned to sit it out on the stock exchange ring and pick beta scraps?

It is not so. You can become a stock market analyst to match the best. You will probably need time and loads of practice. However, you will find from one week to the next that your sense of timing keeps improving. You will get strong impulses to short some stocks, while buying others with at least a year in view. You could form an investment club to put some high octane gas under the stock market hood. Read about it at: Best Stocks to Sell Short

China is a great training ground for learning the alpha way to stock market gains. That is because government leads are clear. You get a concrete idea about which way the economy is headed. The news is not great all the time, but at least you can navigate away from stormy stock areas. We have an entire web site dedicated to China business: Chinatrade.com

What if you do not know the A and B of the stock market? You do not need access to W. Buffet for that. Simply join our forum and ask.

Markets

Comments

1. On Friday 21 March 2008 at 03:40, by Zeus

T is the most important alphabet for stock investing. It stands for the time horizon. Online stock trading, day trading, and stock investment are sometimes thought of as one kind of activity. The reality is that even chalk and cheese are more similar to each other than time horizons of investments. You should buy stocks like mad if you are young and have surplus cash at this time. However, you should go to Hawaii and stay away from the stock market if you are a day trader. Short term trading is a minefield during times of stock market volatility. Investing against the stock market trend is the Mantra of stock Gurus. There is no point in discussing any financial planning subject without a time horizon in view.

Add comment

To add a comment, you need to log-in below using your Forum account or click here to register.

Recent Videos

Recent Articles

Recent Comments

Article Archive

Related Sites