Wednesday 21 October 2009

Good stock selection and timing works well in any stock market

The stock markets are very unpredictable.  It can collapse in the midst of prosperity just as it can zoom upwards in the midst of recession.  Some stock markets are often subjected to manipulationsThe small investors can lose a very large percentage of their capital if they invest blindly.  On the other hand, if the small investors can pick the correct stocks at the correct time, they can make a great deal of money.

Good stock selection and timing works well in any stock market, whether it is American, British or Malaysian.  However, good stock selection usually requires careful and meticulous work.  Some of the masters of the art take more time while others take less but they all have to work at it consistently.  The amount of work they need to put in would depend on how gifted they are.  Even the great Warren Buffett works onit on a full-time basis.

Many are very interested in buying shares as an investment.  However, many do not have the time or inclination to spend a few hours on it every day.  Even if they have the time and inclination, some may not have the necessary training to read company or economic reports and understand what has been written. 

It would be much easier for them if they can just pick up newspapers or magazines and follow their advice and recommendations.  Almost all newspapers have a columnist or two writing on business or stock market affairs.  In addition, there are business magazines which also carry regular features on the stock market and individual companies. 

However, experts are also not immune to making serious errors of judgement.  In the final analysis, investors will have to draw their conclusions regarding the usefulness of relying upon professional advice.

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