Common Question: "What stock to buy?"

Today let us discuss about this question that we can heard about it all the time.

When come to financial instruments, we need to know: why to use it and how to use it.

WHY??????
What is your intention of using this financial instrument to make money?
Trading?
Investment?
We must have a clear mind about this before enter the market.
So know your purpose first is very important at the beginning.

HOW?????
After found your purpose, then next step is use what method and strategy to reach your goal.

Different goal will need to apply different methods and strategy.

Income?
Accumulating Wealth?
Short term?
Mid term?
Long term?

Financial investment is something we use money to take risk for making more money.

I think this is a goal that everyone want to achieve it (making more money).

There are few ways to do analysis before make your decision such as:
Technical Analysis
Fundamental Analysis
Investment Psychology
Market Cycle
etc....

Today let us take a look on Sectors Vs Market Cycle:

Figure 1

Above figure is a roughly idea which sector is likely to pickup the up move in different market cycle stages.

When "big player" making money they will take profit, after take profit the funds will flow into another sector that got more space to earn more.

I need to make this clear to define where is beginning or ending is not an easy job. This needs continuous monitoring and tracking the market to find better opportunities.

There are many ways to do it. You just need to learn how to do it.

The more homework you do, the better chance to increase the probability of profit.

Hope this information will provide you some sight what to do in different market cycles.

Thank you for your reading.

Have a nice day.

Disclaimer:

All posts and documents submitted by the Admin in this blog are solely for open discussion and education purposes only. All recommendations and opinion provided by the Admin are solely for your consideration only and you should exercise your own judgment in forming your own investment  decision(s). Please also be informed that equity investment is risky and we recommend you to conduct sufficient searches for information in addition to referring our recommendations and/or opinion herein, prior to making an investment decision.

You should take full responsibility of your investment decision(s) and we accept no liability whatsoever for any direct or consequential loss arising from any use of our recommendations and/or opinion provided herein or any solicitations of an offer to buy or sell any securities. Comments and opinions forwarded/provided by members/followers of this blog do not belong to the Admin and we take no responsibility of such.