Conservative Stock Investing

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Conservative Stock Investing

For the stock investor still hurting from the 2008 market crash conservative stock investing is attractive. Each of the world two largest economies, the European Union and the United States, is dealing with its own potentially disastrous debt crisis. There may not be enough time for the US congress to switch from posturing to passing the necessary legislation to avoid a debt default by the USA. As European officials drag their feet the so called PIIGS debt crisis spreads from Greece to Portugal, Spain, and Italy. How would the world economy respond to twin debt defaults on opposite sides of the Atlantic? How would such a situation affect stock investors and traders in the USA? Is conservative stock investing the route to take? A number of US companies, like Microsoft with $50 Billion in offshore reserves, have heaps of cash that amount to a significant margin of safety . In considering how to stock investing today we should first consider just what is conservative stock investing. What does conservative mean and is a conservative approach always the best choice? Where do the basics of stock investing , fundamental and technical analysis and the use of time honored tools such as Candlestick analysis fit in this story?

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Conservative Stock Investing

  1. 1. Conservative Stock InvestingBywww.CandlestickForums.com
  2. 2. For the stock investor still hurting fromthe 2008 market crash conservativestock investing is attractive.www.CandlestickForums.com
  3. 3. Each of the world two largesteconomies, the European Union and theUnited States, is dealing with its ownpotentially disastrous debt crisis.www.CandlestickForums.com
  4. 4. There may not be enough time for theUS congress to switch from posturing topassing the necessary legislation toavoid a debt default by the USA.www.CandlestickForums.com
  5. 5. As European officials drag their feet theso called PIIGS debt crisis spreads fromGreece to Portugal, Spain, and Italy.www.CandlestickForums.com
  6. 6. How would the world economy respondto twin debt defaults on opposite sidesof the Atlantic?www.CandlestickForums.com
  7. 7. How would such a situation affect stockinvestors and traders in the USA? Isconservative stock investing the route totake?www.CandlestickForums.com
  8. 8. A number of US companies, likeMicrosoft with $50 Billion in offshorereserves, have heaps of cash thatamount to a significant margin of safety .www.CandlestickForums.com
  9. 9. In considering how to stock investingtoday we should first consider just whatis conservative stock investing.www.CandlestickForums.com
  10. 10. What does conservative mean and is aconservative approach always the bestchoice?www.CandlestickForums.com
  11. 11. Where do the basics of stock investing ,fundamental and technical analysis andthe use of time honored tools such asCandlestick analysis fit in this story?www.CandlestickForums.com
  12. 12. The dictionary defines conservative ascautious, practical, and averse to rapidchange.www.CandlestickForums.com
  13. 13. The traditional conservative approach toinvesting in stock is long term investing ,dividend stocks , and large cap stocks ina balanced stock portfolio .www.CandlestickForums.com
  14. 14. The problem is that long term, buy andhold investing in large cap dividendstocks is not always profitable and canlead to significant losses.www.CandlestickForums.com
  15. 15. A classic example is IBM in the early 80when it saw the value of small personalcomputers too late and missed the boat.www.CandlestickForums.com
  16. 16. Like it or not we live in a world of rapidchange and closing our eyes to that factis a recipe for stock trading and investingdisaster.www.CandlestickForums.com
  17. 17. Even conservative investors need tofollow Candlestick stock charts and stayabreast of market sentiment.www.CandlestickForums.com
  18. 18. Conservative stock investing can be arecipe for safe stock investing in todaysfast paced world.www.CandlestickForums.com
  19. 19. However, we need to add the wordsthoughtful and based upon experienceto the description of conservative stockinvesting.www.CandlestickForums.com
  20. 20. Thoughtful stock investors look for amargin of safety and intrinsic stockvalue.www.CandlestickForums.com
  21. 21. They avoid a stock with an inflated priceto earnings ratio or price to sales ratio.www.CandlestickForums.com
  22. 22. In conservative stock investing the focusis in reducing investment risk whileretaining profits.www.CandlestickForums.com
  23. 23. With the use of technical analysis toolssuch as Candlestick patterns the investoror trader can assess market sentimentand profit from buying at the bottom ofa price curve.www.CandlestickForums.com
  24. 24. With the use of Candlestick signals theinvestor can learn to buy stock or sellstock at the most opportune andprofitable moments.www.CandlestickForums.com
  25. 25. Where buy and hold investing canresemble an ostrich sticking his head inthe sand,www.CandlestickForums.com
  26. 26. conservative stock investing with soundfundamental analysis and the use ofCandlestick charts can give thethoughtful and conservative investorsound profits.www.CandlestickForums.com

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