Long Term is Not Always Bad

I consider myself a short term trader, but that does not mea
I can’t invest ever now and then. Sometimes the conditions are perfect for investing and you can’t overlook it. This occurs when.

1. There is a “Fire Sale”

A fire sale is just another name for when stocks are cheap. When stocks get low enough, especially strong stocks it is not a bad thing to buy a few and hold onto them for a while. The market goes through cycles of ups and down, there is nothing wrong with buying a few in the down times and waiting for the market to go back up.

After all historically you would have done pretty well by buying close to the end of a bears market and holding onto a position for a little while.

2. When the company is strong

There are many companies out there that are not going to go under. McDonald and Coke a Cola for example have a huge customer base. I would doubt very much that either one of them will go bankrupt any time soon, regardless of how bad the economy gets.

3. When a Company is optionable

Optionable stocks are great. By selling the options you can pull out a monthly income from the stock and make it easier to be profitable on a position. There is nothing wrong with selling options on your stock if you do not mind getting called out on them after all.

4. When a Stock Offers Dividends

If a stock is offering dividends so much the better. Dividends allow you a way to make cash flow from a stock that you already own without having to assume the risk of getting called out of your stock. While dividends are nice to have it probably should not be the most important thing you look for when taking a trade.

For more on Finding Good Stocks Visit http://www.stocks-simplified.com/fundamental_analysis.html

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