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How to keep you return on investments high and minimize risks
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According to the Yardeni Research report on bull and bear markets, over the past eight and a half years since prices bottomed out during the financial crisis, the stock market has returned an annualized 19% or so. But it's also clear that stocks go into periodic, prolonged slumps, falling nearly 40% on average over a period of a year in the 20 bear markets since 1929. With so many people getting accustomed to shares, the stock market and learning the trade, there are even more rising to the opportunity of getting a feel of the stock market through trading. Many also opt for trading as an opportunity to get the best return on investment in an easy and timely manner. However, being a trader today is anything but easy. Talk about the high risks, huge amounts of money being added by the minute and even bigger frauds that are constantly heard about. Even with so much online security and caution, traders who have been trading for a good number of years are also duped for large sums of money. While this obviously does not mean that a newbie should totally refrain from it, it just means that one should be a little extra cautious when it comes to investments and stock trading. These excellent short-term investment tips are apt if you are looking out to keep your investments high and risk low: Move past the smaller stuff: Don’t let small losses impact you. Look at it as a game: There will be some winners and some losers but that doesn’t mean you stop playing. Make sure you keep the bigger picture in your mind while moving ahead. Move a little past the P/E ratio: “The P/E ratio must be interpreted within a context, and it should be used in conjunction with other analytical processes,” says Investopedia. While many investors may look at the P/E ratio as a hard and essential concept when it comes to shares, it is vital to look at the entire experience as a whole picture rather than sticking with a fixed stigma. Go forward with a strategy: Don’t become the “jack of all and master of none.” If you constantly switch instead of sticking with one strategy that works well for you, you will soon get confused and the chances of results will be slim. Pick your style and go forth with it. Keep an open mind: Do not judge a book by its cover. While most large companies may be profitable, it is not a completely bad idea to restrain fully from the smaller ones. In the past, many small companies have struck gold for their investors so be wary before putting off a company simply because it is small or it’s a start-up. Know what others don’t know: Want to really get ahead in the game? Then start learning more about what you do. Research, learn and get ahead. Start trying new methods, don’t lose focus, get in touch with those who have good experience in trading and refer to the internet. Learning never stops and in this case will definitely give you the much needed upper hand.
Apart from all of the above, it goes without saying that the biggest risks and highest ROI happen only with time and a ton of experience. Going forward, you can choose to invest slightly over a period of time or get so fascinated with the concept that you do it with larger sums. Either way, do what suits you, get comfortable with it and make sure you give it your best shot each time! To know more visit us: investing in stocks,Investment Opportunities,best investment Options,Best Investment Options for Retirement,Peter Lynch investing Secrets,Become a Private Equity Investor