The Stock Market is like a day at the horse races, the state fair, and the gorilla exhibit rolled into one event. Nearly each hour of each day with the exception of some holidays the Stock Market is open somewhere in the world. Stock analysts determine stocks based on graphs, moving averages and mathematical formulas the strategy for their investors.
The analyst takes into account not only market news, but the probabilities of certain events impact on a unit or the entire market. The analyst is in many ways like the fortune teller at the circus with a crystal ball armed with a Hewlett-Packard hand calculator. Use your cupboard as a stock picker There are experts in the field of making predictions on stock performance.
But another expert in the field of some stocks may be you the consumer. Think about it, you pick products that for various reasons are your favorites. Your kitchen cupboard or shopping basket may be a very good prediction on the long term performance of the company stock. A cautionary note is that even the best company may have a down year.
The reasons could be management changes, and other economic pressures. The product is still good, but the internal structure of the company needs a quick fix. In these circumstances make a decision whether you want to weather the storm or wait until the company gets its act together. Sometimes the stormy days of a company can be a buying opportunity. The blue chip stocks The fact is that we take for granted the Blue Chip stocks both in our familiarity as an end user, but often times in the stock market.
The Blue Chip stocks make up the S&P500 index. These stocks as a whole can be purchased as an index fund. Some Blue Chip stocks make up the Dow 100. These stocks on the whole are a bell weather of how the overall market is doing. In blue chip stocks, the investor can pick and choose a Blue Chip stock and buy it through a stock broker or on-line with a trading company like Scotttrade or E*Trade. This gives you access to the companies performance on the short term and charts going back at least 10 years.
The investor can access the company's financial reports and quarterly earnings on-line. The investor can ask the company to send you a company prospectus. The variety of ways to invest in Blue Chip stocks is endless, spiders, index funds, and hybrids in between.
There are option contracts and some tricky investments that only a really savvy trader can advise you about.
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