US Investment Advisor | Raleigh Investment Consultant, LLC

Dear investors:

In today's article, we'll discuss how to invest in stocks and the factors that can help in selecting the best-performing stocks.

Investing in stocks is similar to buying anything in our day-to-day life (electronics, utilities, grocery, etc.). You should buy only if you really “need” something and when it is at the "lowest price". You should buy at the discount level and not at a retail level (which a common investing mistake). A smart investor would only focus on buying a stock (or any security) of a good company, at the most discounted price level. Essentially you are buying a piece of a good company when it’s truly undervalued. As the price goes up, the value of your investment will go up as well.

Invest using online trading platforms, which provides you more control in managing your investments.

You need to learn 2 things before investing in stocks:

1. The Fundamental Analysis

How is the company performing? Will the valuation of the company increase in the future? This is determined by the fundamental analysis of a company. Fundamental analysis is a method of measuring a security's intrinsic value by examining related economic and financial factors. This includes examining the company's balance sheet, income statement, statements of cash flow, business model, competitive advantages, etc. Some mathematical calculations that can help understand the fundamentals of a company include price-to-earnings ratio, market capitalization, earnings per share (EPS), return on equity (ROE), the debt to equity ratio, and working capital ratio.

2. The Chart Analysis

Is the price of the equity or stocks truly at a discount level and would only rise from that level (rather than going down). This is more important! This is determined by the price chart analysis. The price chart tells us the momentum and direction of the price. It provides us with clues as to where the price will change the direction. When the price is up-trending you may want to buy a stock. But if the price is down-trending you need to wait for the price to reverse before buying that stock. The price of stock takes into consideration all the financial aspects of any company. You may want to buy a stock of a great company, however, you cannot understand the most discounted price level unless you examine the price chart. That is where we should buy the stock.

Real Example: Disney Co. (Ticker: DIS)

We are going to show you an example of a recent investment that we made in Disney. Although Disney is a good company with great fundamental analysis, we waited to buy it when it was at its most discounted price level.

Our proprietary analysis showed that Disney stock should be bought around $114. On July 30th (Picture#1 below) we bought 100 stocks at $113.91 (That is ~14K investment)

Within a week the price of the stock was up to $130 as you can see in picture#2 below. That is a ~14% profit in 1 week.

The important question is not “HOW to buy a stock” but should be “WHEN to buy stock”. Because when you understand the concept of ‘time” you have greater profit potential.

Visit us to learn more.

US Investment Advisor is here to guide you in uncertain financial markets.

US Investment Advisor | Raleigh Investment Consultant, LLC

Delivering comprehensive investment advisory and educational services across the U.S.

Independent, Fee-Only, Fiduciary

Call: 919-373-5454


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