Sunday, July 01, 2012
Basic of Stock Markets
This is actually BUSINESSES should be, listed so that companies could grow. Unfortunately, MANY stocks traded are CROOKS, run by conmen CEOs, and those of GLCs, managed by in-efficient team of managements. That is why we, as investors, need to be informed ... and taking the calculated risk.
Dividends is a good indicator if the company is earning money and award the shareholders. But, the edge mentioned that consumer-stocks such as Nestle is over-valued. So, we DO NOT buy good-dividend stocks when they are over-priced, and index at the peak.
These are for newbies ... BUY a stock, as a business-wise point of view. DO NOT buy stocks due to speculations. BUY into businesses, growth and sustainable profittable companies. Remember, dividends and cash-flow are two very important pointers to look into.
Do not lose money. How? Never buy lousy stocks. Never buy at the peak. Never listen to forums or tips from others.
Many more "NEVER" rules I could easily point-out. Just listen to the easy cartoon clip to understand a little about why a company listing their companies.