Research
To say that research is important to investing is like saying air is important to breathing. The strange thing is that research is often overlooked by the amateur and the professional alike. Instead they look for today’s action. What is moving ? Where is it going ?
Ideally , the investor knows ahead of time what is likely to be moving , where is it going , and why. To have a relatively small group of stocks that one follows well is both wise and often fruitful. If following the group is not fruitful , change the makeup. Find different stocks to follow.
Getting the basic information before the investment is made can do absolute wonders for saving the investor money. A sudden price increase should never be the only reason to buy a stock. An increase in either price or volume might call your attention to a particular company , but also get the background on what is happening.
In recent times one only need look at the fortunes of WorldCom or Enron to see …
