A Guide To Good Stock Investment With Strategies To Beat The Market
What are the secrets to good stock investment? This is a question which has perhaps perplexed many of us time and again. How does one find the time to study the many stocks which make up the market? Is it at all possible to get market beating returns from investing? The answer is in "The Five Minute Investor" by Braden Glett.
Surprisingly enough, the answer is selecting stocks which have made all time highs to invest in. This is momentum trading at its best and therefore best applied at the start of a new bull phase or even better, only when the index is itself making a new high. Stocks which have made all time highs have done so for a reason. Remember the market is always right. Of course, caution demands you select stocks which have a fair market capitalization and a fair volume - you will find more on these in the book.
Then there is the reverse scale strategy which alone is worth its weight in gold. Essentially, you will be adding investment money to the winners and getting out of losers. Which is what you should be doing anyway - but which most of us do not. We take profits too soon and hang on to the losers in the hope that they will recover. Which is quite obviously all wrong. You just have to read this book to get all the details. The devil is of course in the detail.... but once you have read this book and internalized its concepts (which by the way should not be so difficult), I am sure even a ten year old could master investing, if he were so inclined. Statutory disclaimer: I do not personally know any ten year old who has mastered stock market investing.
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