Focus Your Investments on the Long Term

"All human power is a compound of time and patience!" Honore de Balzac (1799 - 1850)

Long term investing or "Buy and Hold" is not about hunches, emotions, stock tips, market timing or making quick profits! It's about using proven long-term strategies to accumulate wealth over time!

A large part of the daily volume on the exchanges is due to traders who hope to make a small profit by taking advantage of small discrepancies in the pricing of securities, or who are able to buy a stock as soon a favorable analysts report is issued and who hope to profit before the inevitable runup.

The instantaneous access to information that financial institutions have gives them an enormous advantage over the individual investor when it comes to short-term trading.

How can an individual compete?

Most people don't have the time necessary to be a trader, watching the market every second, able to react instantly to changes in the market.

Analysts use their computers to chart a stock's price and volume over a period of time, in an effort to find patterns that indicate when to buy and when to sell a stock.

Sometimes, though, it seems that interpretation of these charts is more of an art than a science, and sometimes the patterns are more easily discernible in hindsight rather than in real time.

Diligence is also required to know when the signals are right to sell a holding. Some investors rely on tips or they buy and sell merely on hunches. This is usually one of the fastest ways to lose in the market.

The average investor just doesn't have time to devote hours a day to following the market. Fortunately, they have an alternative. By spending just a few hours a month, investors can build a successful stock portfolio, one that will stand up over the long term and deliver excellent returns.

Over the history of the modern stock market, one trend is clear: the overall market keeps growing and growing! The setbacks have been relatively minor and short-lived, compared to the tendency of the market to grow year after year.

Statistics have shown that even if you invest at the peak of the market year after year, you would still show a decent return on your investment, much higher than nearly every other kind of asset.

That's why most individual investors should focus on growth for the long-term, and concentrate on fundamental analysis in building a portfolio of stocks. Fundamental analysis is simply buying hot companies, instead of hot stocks!

Using fundamental analysis, and with a long-term perspective, it's possible for any individual to identify a diversified and balanced portfolio consisting of the stocks of quality companies.

Once selected, these stocks can be held year after year, and any downturn in the market would likely signal a buying opportunity. Maintaining a portfolio like this would only require a few hours a month.

Here are some guidelines for long-term growth stock investors:

Buy good, strong growth companies with proven track records.

Don't buy concept stocks, but select quality stocks, and always keep your portfolio diversified.

Keep on investing regularly and don't try to make a quick profit, slow money is worth just as much!

Invest with a long-term perspective and reinvest any dividends you receive.

Don't place your trust on tips, do your homework and find out all the facts you can before you buy a stock! Above all, invest, don't speculate ...

And don't try to compete with the professionals!

Copyright © 2005 I.E.C. Haramis
haramis@greekshares.com
http://www.greekshares.com

Ioannis - Evangelos C. Haramis was born in Greece in 1951 and he studied in Greece, USA and in Belgium. He has been active in the stock markets since 1972. Since 2002 he is New Business Development Managing Director at an Investment Bank.

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Google News Updated : Tue, 30 Sep 2008 20:38:53 GMT Sentiment against the rich, Wall Street, CEOs still a major hurdle ... - Bizjournals.com BBC News Sentiment against the rich, Wall Street, CEOs still a major hurdle ... Bizjournals.com - 1 hour ago Underlying public distrust of the wealthy -- along with Wall Street and Washington -- and the perception the $700 billion mortgage bailout will help big banks and rich CEOs continues to be the main stumbling block and minefield for passage of a rescue ... Michigan Rep. Miller demands that certain accounting practices be ... Detroit Free Press Reporter's Notebook: Meltdown FOXNews Washington Post - New York Times - Politicker Maine - Los Angeles Times all 2,883 news articles Publ.Date : Tue, 30 Sep 2008 19:32:24 GMT Gallardo ready for Game 1 pressure - MLB.com Washington Post Gallardo ready for Game 1 pressure MLB.com - 33 minutes ago By Joe Frisaro / MLB.com PHILADELPHIA -- For a 22-year-old who appeared in just four games this season, Brewers right-hander Yovani Gallardo certainly endured a great deal. NL Division Series Breakdown - Milwaukee vs. Philadelphia Sports Network Brewers Will Open With 22-Year-Old Starter New York Times Bleacher Report - FanHouse - AHN - SportingNews.com all 506 news articles Publ.Date : Tue, 30 Sep 2008 20:05:12 GMT Depression risk high for heart patients - San Francisco Chronicle Calgary Herald Depression risk high for heart patients San Francisco Chronicle - 13 hours ago (09-29) 17:20 PDT SAN FRANCISCO -- Patients with heart disease should be screened and treated for depression because it can adversely affect their health outlook and quality of life, according to a new report by the American Heart Association. Heart Problems And Depression eFluxMedia Guidelines alert heart patients to depression risk Reuters WebMD - Bloomberg - The Associated Press - InjuryBoard.com all 438 news articles Publ.Date : Tue, 30 Sep 2008 07:10:58 GMT So much for those knee supplements -- probably - Los Angeles Times Chatter Shmatter So much for those knee supplements -- probably Los Angeles Times - 2 hours ago Don't go stocking up on glucosamine and chondroitin sulfate just yet. The supplements, often taken by people suffering from osteoarthritis of the knee, don't appear to slow cartilage loss. X-Ray Evidence Shows Popular Supplements Fail to Slow Knee ... MedPage Today Glucosamine and chondroitin don't slow arthritis Reuters USA Today - eFluxMedia - InjuryBoard.com - Austin American-Statesman all 53 news articles Publ.Date : Tue, 30 Sep 2008 17:58:39 GMT Obama, McCain seek political gain in credit crisis - The Associated Press Seattle Post Intelligencer Obama, McCain seek political gain in credit crisis The Associated Press - 1 hour ago DES MOINES (AP) - White House rivals John McCain and Barack Obama combined televised attack ads with statesmanlike appeals for bipartisanship on Tuesday as they vied for political gain in the shadow of the worst economic crisis since the Great ... Video: McCain Faults Obama, Allies for Partisanship AssociatedPress McCain takes hit from bailout collapse CNN Reuters - ABC News - AFP - CNN Political Ticker all 2,630 news articles Publ.Date : Tue, 30 Sep 2008 19:12:18 GMT Bloomberg Called Ready to Announce Third-Term Bid - New York Times New York Times Bloomberg Called Ready to Announce Third-Term Bid New York Times - 47 minutes ago By MICHAEL BARBARO and DAVID W. CHEN After months of speculation about his political future, Mayor Michael R. Bloomberg plans to announce on Thursday morning that he will seek a third term as mayor, according to three people who have been told of his ... NY mayor Bloomberg to seek third term: report Reuters NY Times: Bloomberg To Announce Third Term Run NY1 TIME - The Star-Ledger - NJ.com - Gothamist - New York Daily News all 281 news articles Publ.Date : Tue, 30 Sep 2008 19:51:03 GMT China Detains 22 in Tainted-Milk Case - New York Times China Detains 22 in Tainted-Milk Case New York Times - 3 hours ago By DAVID BARBOZA SHANGHAI - China said Monday that it had detained 22 people suspected of operating an underground network that intentionally adulterated milk with an industrial chemical, melamine. Hong Kong says Cadbury melamine levels acceptable The Associated Press Manufacturing giant recalls melamine tainted tea CNN International AFP - Wall Street Journal - Reuters - GMA news.tv all 2,775 news articles Publ.Date : Tue, 30 Sep 2008 16:50:50 GMT Clickbank Affiliate Work From Home

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