How 20 Minutes of Research Puts You Ahead of Other Investors
Timing is everything when it comes to investing. The only way that you'll be able to make any money is to know when to move before the stock prices react. A little time upfront could set you up for investing success...
What if we told you that there was one easy step that could put you at an advantage to other investors? And even better, it’s not going to take months and months of studying…and it’s not something that’s going to cost you hundreds of dollars.
Over our years and years of working in the investment realm we’ve found that sometimes a little extra time spent upfront can make it easier to profit from news and events in the future.
If your strategy is to watch the price movement of shares and then react, you’re not going to be able to profit as much as you could. By the time a piece of news affects the movement of a stock, you’re too late. Even if you manage to get in before the stock has hit its new high, you didn’t lock in the amount of gains that you could have. Being ahead of other investors is everything.
In order to make sure you’re not a victim of just simply following the price movement of a stock, you need to have a slight change in mentality. Too often investors forget that a stock is more than three letters trading on an exchange. When buy shares of a stock, you’re buying a portion of a company. This is a key point to remember when you’re looking at how much a share of a stock is actually worth.
This mentality is more common for long-term investors. But that doesn’t mean that this mentality can’t help investors who are looking to profit during shorter periods of time.
So, what is our 20-minute secret to staying ahead of other investors? It’s quite simple: Know what the business does and a little about how performs that business.
Too many investors can’t tell you anything about a company that they have put money in. It’s not that hard to find out.
We’re not saying that you need to become an expert on the business. There are plenty of analysts and writers to do that for you. And it’s always worth it to have some of those on your side. But, if you know a little bit about the business, then you will be able to see some of the news impact before it reaches the point that it is affecting the movement of the share prices.
For example, if a company has part of its operations in a particular country, you might have a news alert set for what’s going on in that country. Once a small story about political unrest hits your news screener, you can set up a few options trades to take advantage of the price slide once that news has hit the major news outlets.
The financial news outlets probably won’t pick it up until those share prices start to slide. Then it’s too late for you to profit. It doesn’t have to be a daunting task to learn about what a business does. Even if it’s in an industry that you know nothing about.
A good place to start is on the company’s website. There are two main things to read. First is the About Us section of the site. That will give you an overview of the company from a consumer point of view. It is a quick and easy way to see what the company is presenting to its customers.
The second place to look is under the investor section of the website. Here you should be able to find a section for investor presentations. The most recent one will be a quick way for you to see how the company is being presented to investors. It’s a quick overview of where the company is with its goals and where it’s headed over the next year.
It’s that easy and it usually takes less than half of an hour.
Now you can set up your news alerts with a completely different mentality. You can be looking for things that affect the company instead of just waiting to be alerted that the price is moving. You can instead look for issues with getting raw goods, a change in the price of raw goods, or talk of a contract available in that industry.
So next time, you’ve got a stock sitting in your portfolio or even sitting on your watch list. We recommend that you take a few minutes to set yourself up for trading success.
That’s just the very tip of what we do around here at Net Growth Media. If you haven’t checked out the Financial Freedom Formula, we lay out all the details here…it’s the place where we break down the catalysts that we’ve found before the market has.