Why Buy and Hold Investing
Investing in growth stocks can be a great way to earn life-changing wealth in the stock market. The key, of course, is to know which growth stocks to buy - and when. To help you get started, heres a handy guide to growth investing. With these tools and strategies, youll be able to position your portfolio for long-term success with growth stocks. Growth Investing Guide: These stocks represent companies who have shown a strong trend for higher revenue growth. The stocks are expected to grow and expand in the foreseeable future. While this is exciting, it also means that this stock s not going to make a new record. However, it does mean that you can earn good money off this stock by following a few strategies. Growth stocks are usually large, blue chip companies. They are generally companies with large deals behind them. Some examples of these companies from the past are Sony, Nokia, and Citigroup. This is a simple strategy to invest in because you can pick out winners in a big deal without needing the whole company. There are companies that are undervalued that you can scoop up with this strategy. You can also pick winners by doing fundamental analysis. This is another way to pick out companies to invest in (as in picking the winners from a whole lot of deals). This strategy looks at the fundamentals of the sector/company to determine how sustainable they are. It is not enough for them to have a strong price position. To make money, you have to believe that the company will have a healthy future. This takes time and experience. For beginners, I suggest that you start with ETFs. ETFs are Exchange Traded Funds. There are now several ETFs that track specific groups of stocks. For example, SPY has tracked technology stocks. MWMY has tracked smaller stocks. The above approach is simple. It takes a lot of time for a beginner. But, it is doable for a beginner. If a beginner wants to buy and hold for the long-term, they can invest in the above approach. You can also buy and hold for the long term but it will be a lot more time consuming. That is why I recommend starting out with ETFs. It is easier to add to (see the above example) and it is faster. I hope that I have helped you in understanding the meaning of Growth Stocks and investing in them without having to invest in whole companies.