basics investing market stock

To help tailor your investment strategy, try asking yourself these questions:

Do I usually average down in price, or do I take a small loss?
How many shares do I buy and sell everyday and do I diversify well?
What is the usual size of my trades? 500 shares, 1000 shares, or even more?
When do I take my profits? When I’m up 10 %, 20 % 50 % or more?
If I have a profit in a stock, do I hold it overnight?

When you have considered all the above aspects, you will be well underway to finalising a very valuable and effective investment plan.
The Stock Market: The Second Biggest Financial Scam of the Twentieth Century Part 2 of 2
In steps the Stock Market, promising higher returns than stodgy old bonds, and money market accounts; hence, the stock market became the destination of choice for retirement savings and Wall Street responded by increasing the offerings to retail consumers through Mutual Funds. Before the year 2000 it was not uncommon to hear that the S&P returned 16 % over the previous 10 years. Looking at the returns of one of the best known indexed mutual funds, the Vanguard 500, returns since its 1976 inception are 11. 75 %, impressive until you look at the 1 year return, - 2. 41 %, the 5 year return, 11. 89 % and the 10 year return 5. 06 %. These are average returns not real returns. As an example let’s look at the growth of 1 dollar in the mythical High Fly Fund. High Fly posts a 50 % gain in one year and your dollar grows to $1. 50. The next year it posts a 25 % loss, now your investment is worth $1. 125. The average return for High Fly reported by the mutual company is 12. 5 %, but that is not your actual return. Your actual return or compound annual growth rate ( CAGR ) is in the neighborhood of 6 % per year worse if you factor in inflation.