Growth, Value, and Momentum Investing Styles
* At the time that the Dow Jones Industrial Average (DJIA)
reached a record high, individual investors are turning
away from foreign stocks and investing in U.S. stocks.
* The average price/earnings ratio of the DJIA was 22 and
that of the Nasdaq composite was 35 as of October 2006.
* For the first eight months of 2006, value stocks outperformed
* In overnight trading on November 3, 2006, Whole Foods
Market’s stock price fell by more than 20 percent and
Electronic Arts’ stock price increased by 11 percent.
* In 2005, growth stocks outperformed value stocks.
* One investment style is usually dominant at any given
The preceding three chapters covered fundamental and technical
analysis methods for selecting stocks and an evaluation of the different
investment strategies, respectively. Armed with this information,
you are now ready to construct a portfolio using an investment style
that is suitable for your particular needs and circumstances.
* Investment style
* Selection of stocks using a value equity style
* Selection of stocks using a growth equity style
* Selection of stocks using a blend of growth and value styles
* Momentum investing style
Categories in Trading Mistakes
Lack of Trading Plan
Planning plays a key role in the success or failure of any endeavor
Using too much Leverage
Determining the proper capital requirements for trading is a difficult task
Failure to control Risk
Refusing to employ effective risk control measures can ensure your long-term failure
Lack of Discipline
A lack of discipline can destroy even the most talented and best prepared trader
Useful Advices to Beginning Trader
You can control your success or failure
All about Stocks
Encyclopedia about Stocks. That you should know about Stocks before starting
All terms about Forex market