Researching investments
If you're investing to accumulate wealth by
buying individual securities, there are two questions you need
to answer in order to limit your risk while seeking a satisfactory
return: |
| 1. |
What investments should you buy? |
| 2. |
When should you buy them? |
|
| The only sound way to make these choices is
to research the possibilities until you know as much as you can
about: |
| The overall market |
| Various sectors
of the market |
| The company issuing
the individual stock or bond you're considering |
| The supply of and
demand for the securities you're considering |
|
| For a thorough investigation, you need to do both fundamental
and technical analysis, either on your own or working with an
adviser. Some of the techniques may seem intimidating, and the
details overwhelming. But the information you need is readily
available. |
Thomas J. Dorsey, President and
co-founder of Dorsey, Wright &
Associates 
