Long Term Investment                                   Candlestick Chart Profits Training Series                          ...
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Long Term Investment

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Long Term Investment

  1. 1. Long Term Investment Candlestick Chart Profits Training Series www.CandlestickForums.com – Long Term Investment A long term investment is typically thought to be a stock, bond, or other equity held longer than five years. For income tax purposes a long term investment is one that is held for a year or more and is commonly subject to a different, and lower, tax rate than an investment held for less than a year. Good long term investment stocks will typically have a strong cash flow combined with reasonable stock prices. Investors use the price to earnings ratio as a guide to whether or not stocks have been priced above their intrinsic stock value. If the market has driven a stock price too high its forward looking earnings will not be sufficient to justify its current price. Investors also look for a margin of safety in a long term investment. For example, a company with money in the bank, a low debt to asset ratio, and salable assets will be able to weather stock market crashes when other companies will go bankrupt. If such stocks are well paying dividend stocks as well, they will provide a good return on investment in quarterly dividend checks and appreciation of stock value over the years. In long term investing as well as day trading the use of technical analysis tools such as Candlestick pattern formations allows both investors as well as day traders to anticipate market trends and market reversal in buying stock and selling stock at optimal prices. A long term investment stock portfolio is normally diversified. Diversifying a … Tags: Candlestick Charts, Investment, Long, Term Read More: 1/1Powered by TCPDF (www.tcpdf.org)

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