Market Advisors

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Thursday, March 12, 2009

Team Strategy

1) Gamble it out on the penny-stocks
Principle: Win big in the shortest of time
Buy penny-stocks in large quantities, hoping that selling the shares following a slight increase in prices would produce large amounts of profits.
Suitable for full-time traders who still makes a living through investing in the market during this economic downturn
Pre-requisite: Risk appetite must be huge; there is a risk that a drop in share prices might lead to heavy losses
When To Buy:
a) When share prices decrease with signs of increasing
b) When share prices increase with signs of stagnating/ decreasing
Summary: Strategy for short-term investments

2) Play it safe, buy the blue-chip companies
Principle: To ensure that every dollar invested will lead to profits
Buy shares in huge corporations (preferably with government backing) to make sure that prices will not dip to too large an extent during this economic downturn and might have a possibility of increasing following the economic downturn
Suitable for part-time investors who still have other means to making a living, investing part of their savings in a bid to earn more money during the current economic downturn
Pre-requisite: Sufficient homework must be done to ensure that company will face as minimal financial difficulties as possible and that its share prices will increase following the recovery of the economy
When To Buy:
a) When RSI is below average nearing 30 and company becomes undervalued
b) When prices are at its lowest
c) When short-term MA is above long-term MA
When To Sell:
a) When RSI is above average nearing 70 and company becomes overvalued
b) When prices are at its highest
c) When long-term MA is above long-term MA
Summary: Strategy for long-term investments

Done By:
Alvin Ong
Lee Zi Jian
Lester Mok
Irvin Ho

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