Friday, 5 December 2014

Key Factors To Became A Successful Stock Investor

The milestone to become a successful stock investor is to identify and recognize the good investors and bad investors. People think that good and big companies are good to invest, but it is not all time necessary to invest in big companies. Even big companies sometimes make  wonderfully bad investments.

Stock investors might be of two types in terms of investment styles i.e. based on value and based on growth. Value investors used to emphasize great companies at good price over good companies at great cost. In this type of investment, investors emphasize on the key factors like price to book ratio, price earnings ratio, divided yield and attractiveness of an investment. 

On the other hand, the growth investors invest in those firms which emphasizes on the raising on their earnings and revenue rapidly than general stock market. This type of investment pays little or no dividends and prefers to use earning and profits to finance future growth and success in future.
The major difference between these two types of investment is that, value investors always favor to their own companies at very good price while in case of growth investment, investors pick great companies as well as price too which the secondary option.

Now, question arises that which type of investment to be owned? Well it is totally depends on the investors.  If you having lower risk then you must go for high investment in value investment style but if you having high risk then you must go for high investment according to growth investment.Overall, the value can be exceeded in long passage of time, but sometimes that growth can be achieved in short passage of time. So always prefer the best stock signals and recommendations to become a successful stock investor.

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