5) Take advantage of periodic panics to load up on shares you really like long term. It isn’t easy to do, but following this advice will vastly improve your bottom line. If you have any kind of concerns relating to where and how you can make use of online casino games win real money, you can contact us at the page. 6) Remember that it’s not different this time. Whenever the market starts doing crazy things, people will say that the situation is unprecedented. Or, they’ll bail out of stocks at the worst possible time by insisting that this time, the end of the world is really at hand. They will justify outrageous P/E’s by talking about a new paradigm.

Many people will find that hard to believe. While the market occasionally dives and may even perform poorly for extended periods of time, the history of the markets tells a different story. The stock market has gone virtually nowhere for 10 years, they complain. My Uncle Joe lost a fortune in the market, they point out. If your company is under priced and growing its earnings, the market will take notice eventually.

Day traders and very short term market traders seldom succeed for long. 4) Be patient. Predicting the direction of the market or of an individual issue over the long term is considerably easier that predicting what it will do tomorrow, next week or next month. 1) Consider the P/E ratio of the market as a whole and of your stock in particular. Most of the time, you can ignore the market and just focus on buying good companies at reasonable prices.

Compare historical P/E ratios with current ratios to get some idea of what’s excessive, but keep in mind that the market will support higher P/E ratios when interest rates are low. But when stock prices get too far ahead of earnings, there’s usually a drop in store. If investors can earn 8% to 12% in a money market fund, they’re less likely to take the risk of investing in the market. 2) When inflation and interest rates are soaring, the market is often due for a drop…be alert.

High interest rates force companies that depend on borrowing to spend more of their cash to grow revenues. At the same time, money markets and bonds start paying out more attractive rates. Here’s a simple conclusion If you’ve been avoiding the market because you believe it’s a casino, think twice. Those who invest carefully over the course of many years are likely to end up as very happy campers…notice, we didn’t say gamblers.

2) The individual investor is sometimes the victim of unfair practices, but he or she also has some surprising advantages. No matter how many rules and regulations are passed, it will never be possible to entirely eliminate insider trading, dubious accounting, and other illegal practices that victimize the uninformed. Often, however, paying careful attention to financial statements will disclose hidden problems. Moreover, good companies don’t have to engage in fraud-they’re too busy making real profits.

Read the latest news stories on the company and make sure you are clear on why you expect the company’s earnings to grow.