The exception to this rule is for cyclical stocks. These are stocks of companies whose welfare depends on the whims of the company. The cycles are well known and are generally heavy industries, including durable machine tools and consumer both producers of goods such as cars.
They feel the effects of recession and depression more than any other industry. In a recession, which take advantage and instead get more. To play you need to observe the cyclical business, like a hawk, the New York Times Index, the index of the Federal Reserve and other measures, and read the business section of The Times, The Wall Street Journal and Business Week, among other periodicals. You can not wait for the turning points either up or down, but you can recognize the beginning of a trend when you see them. It needs a little examination of stock price charts to see which move cyclically, with general economic conditions, and if we return to the recessions of 1957 and 1960 we can see that. These actions are proof of the cycle.
Bethlehem Steel, U.S. Steel, General Motors Black and Decker Clark Equipment Bucyrus Erie Watch noncyclicals Aluminum Company Kennecott Copper price charts, and we are just a few examples: New York State Electric Gas and Potomac Electric Power Company Standard Oil of New Jersey
Of course, if things are bad in business, it is better to be in a non-cyclical, and if things start to improve, it is best to leave them in a cyclical and fell during recession. During the 1960 recession, I bought no action whatsoever. In July 1958, I bought like crazy, and spring 19,611 spent about half my time picking Buys. I could not see the trend at the end of the fall of the 1960th I was too conservative, but when I invest, I was very confident that the recession was over, and therefore my chances of success were good .
Before you get used to the best sources of information storage. If you do not want to use constantly, so you do not buy shares. Stock markets are the most popular investment targets. Everyone has all the experts and the illusion of knowing the last word. To reach out and try to make a decent return requires constant work and constant attention.
We must also take care not to place an excessive proportion of our money when we invest money in the currency. We can be sure that we know how a currency that is happening, but if, say $ 10 000 investment in Forex, it is better not to invest more than 5%, some even say Forex professionals, no more than 1% of our pot must go in another currency, at a time.
My own investment system is simple and lacks any purchase requirement. I only know of one company in depth and how much of the author and the amount of projection on the market in the form of options or shares of the founders, I'm not used to investment. I found that without more information in a society all I can, I run a big risk. Within the information directly from management or management phase. hearsay information is of little use, especially coming from the corridors, unless the agent knows the management and get their information directly from it.








