Success in stocks
Straight into it.
How do you attain success with investing in the stock market?
Attaining success within investing in the stock market comes from the ability for you to be able to hold stocks during times of volatility, hold investments for the long term and to be able to select the right stocks which will allow you the best chances at attaining a strong market return. All 3 must be taken into account if you are seeking to attain success within stock market investing.
To attain success within investing, you also need patience in the stock selection process- you should be able to look through hundreds of stock options before pulling the trigger on investing in an option- the ability to not invest quickly, but to be patient in selecting stocks as there is always a better investment option around the corner.
In order to attain success within stock market investing, you need to be able to choose the right stocks through the right methods. A stock is a piece of a business and the piece of the business is only worth the amount of cash that the business can give back to you at a future date, simply put a business is worth the future cash flows in which it is able to generate over it’s life time.
When selecting a stock, remember that the low P/E, low P/B, dirty and cheap stocks are the ones which allow you to beat the market- a value investing approach or a contrarian investing approach will allow you the best chance at attaining success with your investing. The herd is often wrong and you are nor right or wrong because a hundred people agree or disagree with you, it is all a process.
Success in stocks, comes from looking at a stock as just a piece of a business and that piece of the business is simply worth the value in which you can assign to it. The consensus is the price and is often wrong, your job is as the investor is to find a stock which is selling at a lower price than the consensus has marked it at.
To find these businesses can be a challenge but the best value stocks are often the ones in which the business has been cold for a while and was once hot. Finding a business which was once hot as has since gone cold will allow you a simple way in which you can screen and find value stocks. This process is simple yet it is under appreciated within investing.
Thank you for reading and have a fantastic week ahead.