Short Term Investment

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Short Term Investment

http://www.candlestickforums.com/

There are two things a person may be looking for in a short term investment.
The other is a way to profit from the ups and downs of the stock market. The first just has to do with checking out interest rates on T Bills, CD’s, and other short term debt instruments. One is a place to park their money that is safe and pays better than a bank savings account. The second is where technical analysis tools such as Candlestick pattern formations can help a person to trade stocks and make a substantially better profit than the bank offers or even what one can gain from long term investing.

Short term investment in stocks can be extremely profitable. It can be more profitable, over the years, than long term investing. This is because the rate of return on long term stock investment is typically not linear. Market volatility, market trends, and market reversal all affect stock prices, even of the most stable of stocks. Doing basic and fundamental analysis of stocks and then reading market sentiment with Candlestick analysis gives traders and short term investors the ability to buy stock and sell stock at the most opportune times. Short term investment capitalizes on buying at the bottom of a price curve or short selling just as a market correction hits. Longer term investment depends upon analysis of intrinsic stock value and a stock’s margin of safety. Short term investment thrives on the precise analysis of stock price changes that Candlestick signals provide.

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Short Term Investment

  1. 1. Short Term Investment www.CandlestickForums.com
  2. 2. There are two things a person may be looking for in a short term investment www.CandlestickForums.com
  3. 3. The other is a way to profit from the ups and downs of the stock market. www.CandlestickForums.com
  4. 4. Before We Continue… Click the links below to get your FREE training materials. Free Weekly Investing Webinars Don’t miss these free training events! http://www.profitableinvestingtips.com/free-webinar Forex Conspiracy Report Read every word of this report! http://www.forexconspiracyreport.com
  5. 5. The first just has to do with checking out interest rates on T Bills, CD’s, and other short term debt instruments. www.CandlestickForums.com
  6. 6. One is a place to park their money that is safe and pays better than a bank savings account. www.CandlestickForums.com
  7. 7. The second is where technical analysis tools such as Candlestick pattern formations can help a person to trade stocks and make a substantially better profit than the bank offers or even what one can gain from long term investing. www.CandlestickForums.com
  8. 8. Short term investment in stocks can be extremely profitable. It can be more profitable, over the years, than long term investing www.CandlestickForums.com
  9. 9. This is because the rate of return on long term stock investment is typically not linear. www.CandlestickForums.com
  10. 10. Market volatility, market trends, and market reversal all affect stock prices, even of the most stable of stocks. www.CandlestickForums.com
  11. 11. Doing basic and fundamental analysis of stocks and then reading market sentiment with Candlestick analysis gives traders and short term investors the ability to buy stock and sell stock at the most opportune times. www.CandlestickForums.com
  12. 12. Short term investment capitalizes on buying at the bottom of a price curve or short selling just as a market correction hits. www.CandlestickForums.com
  13. 13. Longer term investment depends upon analysis of intrinsic stock value and a stock’s margin of safety. www.CandlestickForums.com
  14. 14. Short term investment thrives on the precise analysis of stock price changes that Candlestick signals provide. www.CandlestickForums.com
  15. 15. How one approaches short term investment will depend upon the investor’s time frame. If an investor needs his funds in a few days he probably should stick with a money market account. www.CandlestickForums.com
  16. 16. If his time frame is a month and he absolutely must have his initial capital he probably ought to stay short term and deal with his bank. www.CandlestickForums.com
  17. 17. Short term investment, for those with investment capital, capitalizes on short term movements in stocks and is not simply a means of parking ones money until it is needed for another purpose. www.CandlestickForums.com
  18. 18. That is not to say that short term investment needs to be risky. www.CandlestickForums.com
  19. 19. The investor can choose conservative investments. www.CandlestickForums.com
  20. 20. Short term investment uses options trading to insure against risk while nailing down market opportunity in stocks, commodities, and futures. www.CandlestickForums.com
  21. 21. By buying puts or buying calls on a stock the trader pays for the right but does not incur any obligation to buy in the case of a call option or sell in the case of a put option, should the price of the stock move as anticipated. www.CandlestickForums.com
  22. 22. He will use Candlestick patterns as a guide to where the stock price will go next. www.CandlestickForums.com
  23. 23. He will trade options as a backup in order to reduce investment risk. www.CandlestickForums.com
  24. 24. When the market moves as predicted by his reading of Candlestick stock charts the investor will make short term profits. www.CandlestickForums.com
  25. 25. If the anticipated stock price movement does not materialize the short term investment is only short the premium paid for the option. www.CandlestickForums.com

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