Sunday, May 11, 2008

Business Portal

Business Portal

Does Your Stock Investing Earning Suck? You Don’t Have To Suffer Anymore

Posted: 10 May 2008 10:28 PM CDT


You may have come across newsletters by Marl, a stock trading robot, who provides constant recommendations of stocks that offer an opportunity to double your investment. Marl is basically a robot who works automatically by picking up stocks with high growth opportunities, but it needs to be used with utmost care.

Most people prefer a stock trading robot due to the unavailability of time or even skill on their own part. A few of the trading systems are difficult to operate in, and need sufficient training for optimal results. But in case of newsletters for Doubling Stocks, you are spared from doing the work yourself and you are spoon-fed with great stock options.
The normal return generated by the stock trading robot Marl is cent per cent, but some people fail to use it properly, and hence disbelieve the system due to improper returns.

I can tell you by virtue of my own experience that the average returns generated by Marl from the stock investing newsletter mentioned above is greater than 100%. This is no mean feat and has become a point of reference in stock investing industries. But many people are just tempted by the “double” return and do not understand what “average return” implies. They sincerely believe that the double returns are generated weekly. So if they invest $50 now, they will be getting $100 after one week, $200 after a fortnight, $400 after another week and at the end or the month, they would have turned their$50 to $800. Really amazing calculations we have here!

Now time for a reality check. People need to understand that not all stocks double their value. The word “average” has its usual implication. If you prefer to invest all your bank balance on a given stock, its crash might crush you as well. Many people are aware of it, but just due to the emotional attitude, fail to consider it at that point of time. Just foreseeing a great fortune by virtue of double returns, common sense simply fails to prevail!

Still, with proper planning and thinking, the process of doubling your investment based on newsletters is not a farce at all. When you start trading, you need to have a heart of steel to brave the odds against your stock or even stocks if they fail to perform as expected. Here, if you have invested all your money in one particular stock which has fallen down, then you won’t have enough opportunity to participate in the rewarding stocks in this game and will simply be thrown out of the market.

I recommend that you invest only up to 20% of your money in one stock, and since any given stock won’t drop to $0, it means that the risk factor is certainly minimized. This may sound contrary to the doubling of money theory, but in real, this is a crucial factor for success. These are very risky ventures, to be dealt with in the short-run. If you profit from it, sell it off and exit the market. High risk, high rewards. For beginners, this might be a bit difficult to absorb so they learn only after getting hurt. But as long as you take a smart investment decision, the above calculations may actually come true!
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