Believe it or not, one factor that could easily define your level of investing success is the your ability to capture timely market information. Having a strong mechanism for picking timely market information could get you miles ahead of the market and ensure that you enjoy continuous bouts of profitable investment outing. That will come from two key sources. One is your ability to move in quickly and position for bull price drives that will explode your profits. The other is in the head-start it gives you to move speedily out of specific stocks or the market, when significant price slide is imminent. That way, you optimise gains and hold losses to a minimum. That's a super formula for exceptional market success.
The Market and Information
The above-painted super success formula is hinged on the key role of information in the markets and in particular, the stock market. The market is highly information-driven: market sentiment is largely driven by information that hits the market. When a stock suddenly begins a price drive of the type that could mean huge gains or losses, some critical information has filtered into the market that has implications for the earnings and returns profile of the company. Unfortunately, not many investors gain access to such vital market information, and many others will learn late. The implication is that the early birds make all the money and the rest simply support the market or take losses. If your are hoping to dramatically change your fortune investing in stocks, the next big stepping block apart from researching your investment targets carefully, is access to timely information. Get those right and you will rake in outrageous profits, many times over.
What Market Information, Really
Okay, let's get on the same page by getting to understand what market information we are referring to. Your investments are in specific stocks, traded in the market. Those are stocks of particular companies, whose business fortunes could go up or down from period to period. Daily occurrences could also affect them: think, for instance, of the impact of a major factory fire or a huge award of damages against a company by a court. Some could amount to a temporary setback, others may be substantially damaging. On the positive side, it could just be a breakthrough new product. Think of a pharmaceutical company that suddenly finds an effective cure for HIV/AIDS! Some developments relate to the larger economy or the entire industry to which a company belongs. Some others come by way of results published by companies. Sometimes, these results are impressive, at other times, shockingly disappointing. Equally powerful is information on cash dividends and bonus issues companies are proposing for investors. All of these developments, and more, underpin the fortunes of companies and therefore have implications for market response to their stock. You must realise, too, that different investors come into contact with those market-defining information at varying speeds: some, just as events occur or decisions are made ny companies, others, only when it's public knowledge, while there are yet those who may never get to know. Reactions also differ. Some interpret developments deftly and act quickly, while there are those that may not appreciate the implication of events on the investments they have made. There lies the difference in individuals' ability to make money from the market. Those that have effective systems to gather, interpret and respond to market developments are the ones that cream off the market!
How to Be a Winner too
It's time to resolve to become a winning stock investor too. One key step to that end will be to begin to refine your information tracking system so as to follow market developments as closely as possible. You must now realise that your success partly depends on how well and quickly you capture information on developments that have the potential to affect the fortunes of companies you invest in or have interest to invest in. One way to track information is through the media. You must realise, though, that before information finally gets reported in the media, many front-end market operators and investors have known and possibly acted. So, seek to position yourself to know certain things even before they become public knowledge, especially when you have serious investment in a particular company. Relating with market operators like stockbrokers, shareholders' associations leadership, company executives and key staff, key industry players, etc, will give you additional edge. Simply bear in mind that the more you know and the earlier you do, the better you are positioned to take actions that could, from time to time, results in healthy profits.
Also, don't overlook the quarterly results that companies release. Often, price movements, whether upward or downwards, are triggered by market reaction to published results. If the results point to good returns for investors, the market is likely to greet it with price gains. The reverse is the case when results that are published point to a bleak period for investors. Be one of the investors to quickly analyse results and take a position on what they imply for the company's stock. That way, your stand a better chance to make money from the market and minimise losses. That's how to assure your financial growth.
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