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How to use the 4-Stage Cycle for Successful Stock Market Investing - a Portfolio Management Guide
Whether it is a personal shareholding or a SIPP portfolio it is important that it is not left to the vagaries of the stock market and that some degree of ‘management’ is applied to the list of shares held.
It would be a mistake to be over active as that is always expensive and often self defeating but it would equally be a mistake to be inactive and to hold on to all stocks irrespective of performance and market direction (the list of personal pension funds that have been decimated by holding on to the “-90% club” stocks (RBS etc.) is too long for comfort).
There is one, really quite simple, method by which the stock market investor can manage his, or her, portfolio of shares which requires but a few minutes each month and that is to recognise and react to the 4- stage cycle.
A Portfolio Management Buyers and Sellers Guide to the FTSE 350 stocks is published each month by ShareHunter.com. This Guide allows the investor to immediately recognise if his/her stocks are likely to be progressive or regressive with the Report then highlighting what action it would be advisable to take on each individual stock.
This can be invaluable information as it serves to identify not only those stocks about to move upwards but also, and more importantly, those which maybe about to plummet in value.
The Portfolio Management Report is predicated on the fact that there are four main cycles of movement applicable to all stocks and market indices. Once this basic concept is understood the investment into shares, investment trusts, unit trusts, or market indices becomes a simpler, more risk controlled and more profitable exercise.
The four phases of the market cycle are (1) The basing area (2) the advancing phase (3) the top area and (4) the declining phase.
It is a basic fact that any share or market index has to be in one of these four market phases. Identify which one and you will know whether to invest, hold or sell - it is that simple!
Except, of course, it isn’t that simple; there are always complications and it takes a trained eye to be able to identify the characteristics of the four phases and to then apply technical indicators designed to establish the likely future direction of the share price - and that is where the Portfolio Management Guide from ShareHunter Technical Research is so helpful.
Each month it lists all of the FTSE 350 stocks and pinpoints what action (‘buy small’, ‘buy more’, ‘hold’, ‘sell some’, ‘get out now’ etc.) the investor should take in order to maximise the effectiveness of the portfolio holdings.
A free copy of the latest Portfolio Management Report is available on request to admin@sharehunter.com
[Sponsored article by ShareHunter.com]
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Author: LifeTalk Admin (Bella)
Posted: Monday, September 10, 2012 | 4:17:40 PM
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