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Stock Worth Investing In
How do you pick a stock worth investing in? Once you have the criteria for a stock worth investing in how do you find stocks that qualify? Once you have a portfolio of stocks how do you decide when a stock worth investing in no longer qualifies?
In looking for stock worth investing in it is important to decide if stock appreciation is more important to you or whether you prefer dividend paying stocks. If you are in your high earning years you probably want stock appreciation and if you are retired you will want steady payment of dividends. If you have stock that has appreciated over the years it may be better to sell and pay taxes on the capital gains when you are not earning as much.
Stock volatility is another matter in deciding about stock worth investing in. When you are younger and have lots time and earning years in front of you, investing in stocks with a possibility of great appreciation but also the possibility of lots of volatility is reasonable as the stock may have time to recover after a drop in value and you may have time to earn back money lost due stock volatility. This is not a situation you would want in retirement when steady income and preservation of capital are most important.
If are just starting out, talking to a stock broker may help you decide about stock worth investing in. After you have more experience you will be able to do your own market analysis, anticipate stock trends, and understand stock market risk.
Balancing risk and reward potential is important in deciding about stock worth investing in. More risk can go with a potential for higher reward. Investing in a set of start up companies with growth potential may be rewarding and it may also result in loss of capital.
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In looking for stock worth
investing in it is important to
decide if stock appreciation is
more important to you or whether
you prefer dividend paying
stocks.
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If you are in your high earning
years you probably want stock
appreciation and if you are retired
you will want steady payment of
dividends.
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If you have stock that has
appreciated over the years it may
be better to sell and pay taxes on
the capital gains when you are
not earning as much.
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When you are younger and have
lots time and earning years in
front of you, investing in stocks
with a possibility of great
appreciation but also the
possibility of lots of volatility is
reasonable as the stock may
have time to recover after a drop
in value and you may have time
to earn back money lost due
stock volatility.
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After you have more experience
you will be able to do your own
market analysis, anticipate stock
trends, and understand stock
market risk.
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Once you have picked a set of
criteria for stock worth investing
in you can get stock advice from
a broker or you can go online and
select possible stocks by entering
your criteria in a search program.
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Anticipating when a stock is at or
near its low point in a cycle will
be more profitable than buying at
market price without regard to
where the stock is in its cycle.