Focus Your Investments on the Long Term

"All human power is a compound of time and patience!" Honore de Balzac (1799 - 1850)

Long term investing or "Buy and Hold" is not about hunches, emotions, stock tips, market timing or making quick profits! It's about using proven long-term strategies to accumulate wealth over time!

A large part of the daily volume on the exchanges is due to traders who hope to make a small profit by taking advantage of small discrepancies in the pricing of securities, or who are able to buy a stock as soon a favorable analysts report is issued and who hope to profit before the inevitable runup.

The instantaneous access to information that financial institutions have gives them an enormous advantage over the individual investor when it comes to short-term trading.

How can an individual compete?

Most people don't have the time necessary to be a trader, watching the market every second, able to react instantly to changes in the market.

Analysts use their computers to chart a stock's price and volume over a period of time, in an effort to find patterns that indicate when to buy and when to sell a stock.

Sometimes, though, it seems that interpretation of these charts is more of an art than a science, and sometimes the patterns are more easily discernible in hindsight rather than in real time.

Diligence is also required to know when the signals are right to sell a holding. Some investors rely on tips or they buy and sell merely on hunches. This is usually one of the fastest ways to lose in the market.

The average investor just doesn't have time to devote hours a day to following the market. Fortunately, they have an alternative. By spending just a few hours a month, investors can build a successful stock portfolio, one that will stand up over the long term and deliver excellent returns.

Over the history of the modern stock market, one trend is clear: the overall market keeps growing and growing! The setbacks have been relatively minor and short-lived, compared to the tendency of the market to grow year after year.

Statistics have shown that even if you invest at the peak of the market year after year, you would still show a decent return on your investment, much higher than nearly every other kind of asset.

That's why most individual investors should focus on growth for the long-term, and concentrate on fundamental analysis in building a portfolio of stocks. Fundamental analysis is simply buying hot companies, instead of hot stocks!

Using fundamental analysis, and with a long-term perspective, it's possible for any individual to identify a diversified and balanced portfolio consisting of the stocks of quality companies.

Once selected, these stocks can be held year after year, and any downturn in the market would likely signal a buying opportunity. Maintaining a portfolio like this would only require a few hours a month.

Here are some guidelines for long-term growth stock investors:

Buy good, strong growth companies with proven track records.

Don't buy concept stocks, but select quality stocks, and always keep your portfolio diversified.

Keep on investing regularly and don't try to make a quick profit, slow money is worth just as much!

Invest with a long-term perspective and reinvest any dividends you receive.

Don't place your trust on tips, do your homework and find out all the facts you can before you buy a stock! Above all, invest, don't speculate ...

And don't try to compete with the professionals!

Copyright © 2005 I.E.C. Haramis
haramis@greekshares.com
http://www.greekshares.com

Ioannis - Evangelos C. Haramis was born in Greece in 1951 and he studied in Greece, USA and in Belgium. He has been active in the stock markets since 1972. Since 2002 he is New Business Development Managing Director at an Investment Bank.

---

Art Investing for a Financial Future

When we think of investing we probably conjure images in... Read More

Retirement or Financial Freedom?

In the past most people never retired. They died. The... Read More

Discipline in Investing and Trading

Discipline can be simply defined as your ability to follow... Read More

The Myth of the Earnings Yield

AbstractA very slim minority of firms distribute dividends. This truism... Read More

Asset Location ? Increase Investing Returns & Reduce Your Taxes

Location ? Once the holy grail only for real estate... Read More

Getting Started Investing is Often the Hardest Part

There are several reasons people give for not investing their... Read More

Getting Started In Investing

Are you ready to open your pathway to financial independence?Well... Read More

What Is A Fair Market Value, Really? If Youre Going To Trade, Be Sure Its Worth It!

I've been involved in online trading, specifically with stock and... Read More

Holy Grail Investments

Every year I go to the Money Show in Orlando,... Read More

The Realities Of Market Timing

Market timing systems are based on patterns of activity in... Read More

Finding False Gold in Penny Stock

As far as traders go, many do not see the... Read More

The Economy Is Not The Stock Market

Several days ago, the Commerce Department reported that May's factory... Read More

Need To Trade!

You don't HAVE to be trading.As a novice trader, you'll... Read More

Critical Investors Business Daily Responsibilities - If not Followed Could Cost You Millions!

When thinking about the investors business daily responsibilities in today’s... Read More

Investing As A Sport?

I said last week that money doesn't generally buy happiness,... Read More

How To Find An Investment Advisor

Do you think you need an Investment Advisor? Hold on... Read More

Gold; What Type of Gold to Buy

JewelryThe advantages are:? Gold Jewelry is the easiest of the... Read More

Keep Stock Market Investment Profits

Have you had one of those huge investment winners ?... Read More

Find a Methodology and Minimize Investment Madness

There are many reasons to be investing these days, and... Read More

Looking For a Safe Investment? Try a Certificate of Deposit

If you are looking for a safe investment and you... Read More

Investing in New Zealand - Learn how to Find Unique Investment Opportunities

Investing in New Zealand might be much easier than investing... Read More

Mutual Fund Returns May Not Be As They Seem!

Arthur Levitt, during his tenure at the SEC, experienced many... Read More

Investing Online Has Its Rewards: Find Out How To Take Advantage Of Them

Computerized investing. Online investing. Have you taken the next step... Read More

Economic Survival in the 21st Century - the Three Key Questions to Ask

In this "special report", I want to pose a few... Read More

Learn How to Lose and Risk Management

One of the leading traders on Chicago Mercantile Exchange, because... Read More

Global Markets: A Window on the World Economy

Expectations drive the market. Every stock price is driven by... Read More

Larry, Moe and Curley, Investment Brokers

Larry, Moe and Curley were sitting in their favorite restaurant... Read More

California Deparment of Corporations and Franchise Opportunities Law

What CA Needs To Do To Address Issues in FranchisingWe... Read More

How Do I Start Investing Online and What Are Some Basic Tips?

If you are new to investing online, don't put your... Read More

Wit and Wisdom on Money, Wall Street and Success - Part #2

Here are ten more WISDOM packed GEMS that ooffer very... Read More

A Gadfly On A Dinosaurs Butt, Or The Hood-winking Of The American Investor

Have you ever noticed how some words in the English... Read More

Before You Start Investing

There maybe several reasons why you to want to invest... Read More

Day Trading the SP Futures with Initial S/R and the NYSE TICK

For instance, if the market moves up in the first... Read More