How to successfully pick stocks using a growth investment strategy
Free Online Articles Directory
Why Submit Articles?
Top Authors
Top Articles
FAQ
ABAnswers
0 && $.browser.msie ) {
var ie_version = parseInt($.browser.version);
if(ie_version Login
Register
Hello
My Home
Sign Out
Email
Password
Remember me?
Lost Password?
Home Page > Finance > Investing > How to successfully pick stocks using a growth investment strategy
How to successfully pick stocks using a growth investment strategy
Posted: May 08, 2010 |
]]>
If you are not comfortable with calculated risks, or for that matter any risk whatsoever, than investing in high growth stocks that are hailed as the next Apple may not be the right investment strategy for you, but if you are willing to take a chance in order to gain a mind-numbing return next year there is no better strategy than growth investing.
Most of the large cap top 10 stocks today all began as small or medium startup companies that showed a large potential for growth, but in order to purchase a large amount of stock in them back then you would have needed the courage to ignore more practical investment advice, ignore the pricey valuations, the ability to see the gold at the end of the rainbow, and believe that these businesses had the right business goal and strategy to make it.
Of course, many businesses that meet these criteria can crash and burn within years leaving them the same place in stock history as a one hit wonder on the top of the billboard charts, however the ones that do succeed have paid investors off past their wildest dreams. After all, imagine how the people who tossed in the first hundred in shares for Apple feel now.
To get down to the basics, growth investing essentially is a strategy that involves making your stock picks based on high predictions of growth rates that will soon escalate over former leaders on the stock market. In order to identify which companies will be able to do this growth investors look for new technologies or market niches that have the potential to change the way people live or look at a specific type of product. The earlier referenced Apple is a great example of such a company as well as Google which virtually has single-handily revolutionized the internet browsing experience.
For those who are unable to conceptualize this, growth investing is almost the stark opposite of value investing in which investors are concerned with what is happening at this moment instead of what can happen in the future. Growth investors thus play on the other side, looking at what can happen in the future without much notice of the current share price or the intrinsic worth of the company with the belief that both of these figures have the potential to grow.
Those who follow growth investing look for growth stocks that they feel will grow at a large substantial rate making an initial large share purchase well worth the investment. There are of course risks to this theory, since if you choose the wrong company and it flops instead of becoming a market success you will likely lose a large portion of your investment. On the other hand, if you are right than as the company reinvests their capital gain earnings without paying a dividend the stock shares quickly jump in price.
Although new products and technology are the most common areas of the stock market to find growth stocks, there are plenty of opportunities for those who are interested in growth investing in other areas as well since any company that is about to make a full recovery such as McDonald’s did five years can also be a great grab at the right time.
Retrieved from “http://www.articlesbase.com/investing-articles/how-to-successfully-pick-stocks-using-a-growth-investment-strategy-2326154.html”
(ArticlesBase SC #2326154)
Start increasing your traffic today just by submitting articles with us, click here to get started.
Liked this article? Click here to publish it on your website or blog, it’s free and easy!
Alan McKnight -
About the Author:
Alan McKnight is a successful trader and an author of many articles devoted to stock trading. His deep expertise in technical analysis, fundamental analysis, investment and stock picking strategies has made him a well respected member of the financial community. As consultant, Alan has participated in developing various stock screening tools including Technical Stock Screener. Alan has frequently been published in national publications, and he is always glad to share his years of experience and knowledge with other stock traders and investors.
]]>
Questions and Answers
Ask our experts your Investing related questions here…
200 Characters left
What are compression stockings used for ?
I want to make a small investment in penny stock, i cannot do analyses, do you pick them,if you do, suggest some and your charges
Why the people always fall to the trap of Free Stock Tips given by their stock brokers and finish mostly with an loss in their investment?
Rate this Article
vote(s)
0 vote(s)
Feedback
RSS
Print
Email
Re-Publish
Article Tags:
growth investing, stock screener, technical analysis, investing, trading strategies, stock screening software, technical indicators, stock picks
Latest Investing Articles
More from Alan McKnight
John Calamos Says Growth Stocks Are the Most Undervalued
As the market gets more comfortable looking further into the future, we’ll start to get P/E expansion, which is very significant for capital gains, says the Calamos Investments CEO and Co-CIO. (03:14)
Brent Lynn’s Two Flavors of Growth Stock Picks
2010 International-Stock Manager of the Year Brent Lynn offers examples of his fund’s classic-growth as well as special-situation holdings. (05:35)
The Overlooked Growth Potential of Tech Stocks
The market is not fully appreciating the longer-term growth potential of tech stocks, says Calamos CEO and co-CIO John Calamos. (03:49)
Healthy Growth Prospects for Novartis
Growth from emerging markets as well as launched and pipeline products bode well for this pick. (02:42)
Why You Should Invest in General Electric
After years of defensive moves, GE is beginning to invest in growth and return more cash to shareholders, says Morningstar’s Daniel Holland. (03:29)
How To Identify Stock Market Trends
Much of stock market traders` and investors` time is spent trying to predict what the market will do in the next few days to months. However, the process is not all speculative guessing. If one pays close attention, the market will actually indicate which way it is going. Learning to read the signs of the market takes a little time and patience but the rewards will be great.
By:
Alan McKnightl
Finance>
Day Tradingl
Dec 20, 2009
lViews: 257
Economic Analysis:Doomed by a Sea of Debt
Something is terribly wrong in America today. Just about a year ago, when the debt crisis hit Greece, the uncertainty in Europe caused investors to run to the security of the U.S. dollar and U.S. Treasuries. But now, despite what is happening in Japan, despite the civil unrest in the Middle East, the U.S. is no longer the safe haven it was last spring.
By:
Michael Lombardil
Finance>
Investingl
Mar 22, 2011
Commodity Trading Free Mcx Tips Trial Tips For Tomorrow
On 18th March 2011 (Friday), the domestic commodity markets closed with a positive note. All the indexes, at MCX, closed in the positive zone compared to the previous close price. Yesterday, at MCX future, MCXCOMDEX closed at 3,478.26 (up by 0.11%), MCXMETAL closed at 4,426.67 (up by 0.69%), MCXENERGY closed at 3,209.53 (up by 1.00%) and MCXAGRI closed at 2,814.53 (up by 0.82%).
By:
Sanjeev Singhl
Finance>
Investingl
Mar 22, 2011
Can You Take On the Stock Market and Win?
Are there ways to take on the stock market and win? Many people ask themselves this very question and feel that if only they knew the answer they could become very successful as traders. There are software or e-book products out there that claim to help you in this respect. One such product is John Bell’s video/e-book combination titled How to Hack the Stock Market.
Finance>
Investingl
Mar 22, 2011
Reducing Tax on Investments: Minimising Capital Gains Tax
Subject to certain exceptions, you do not pay CGT on any gain you make when you sell your home. Nor, on the other hand, can you set off any loss against gains made elsewhere.
By:
Matto Raiyanl
Finance>
Investingl
Mar 22, 2011
The BSE of India and NSE of India
Are you a novice all geared up to invest in the Indian stock market? If yes, have you educated yourself about market basics and familiarized yourself with the related terminologies? Well, if it is a no and if you do not know anything about the NSE of India and the BSE of India, the two principal bourses of the Indian stock market, you are only getting ready to see your money wasted.
By:
Nirmal Kumarl
Finance>
Investingl
Mar 22, 2011
Invest in Real Estate Not Stock. Stock Is Much Riskier Than Real Estate
There are two very major differences between investing in stock and investing in real estate. When investing in stocks you are typically investing for capital gains versus cash flow and have no control.
By:
Mathew Owensl
Finance>
Investingl
Mar 22, 2011
Tips To Make Better Options Trades
Buying options by the traders is always being considered while keeping the focus on the premium paid rather than the potential returns. Whereas this is important information in terms of making a calculated trade, many options traders tend to lose sight of the probability of the market reaching and exceeding its position’s strike.
By:
Shirish Shal
Finance>
Investingl
Mar 22, 2011
Share values influence the economy…a myth resolved
Most of the investors continue their operation in stock market with the common perception that share value can influence economy. Know the truth.
By:
vaibhavl
Finance>
Investingl
Mar 22, 2011
Why Financial Crisis is a good time to invest?
Although many people shy away from making stock investments during financial crisis’, the truth is that oftentimes if you use backtested investment ideas a financial crises can be the best time to make a solid time tested investment.
By:
Alan McKnightl
Finance>
Investingl
Aug 07, 2010
The Power of Backtesting Analysis
If you want to develop an effective stock trading strategy learning how to utilize the results of backtesting can be one of the best decisions you ever make since backtesting can help you identify an incorrect or correct investment before your money is on the line.
By:
Alan McKnightl
Finance>
Investingl
Aug 07, 2010
lViews: 113
If you want to create a steady stream of income for yourself or your company it may be time to look into how to create a reliable source of income from income investing.
By:
Alan McKnightl
Finance>
Investingl
Aug 07, 2010
How to Make Big Bucks with little risks using Value Investing
For those who want to invest with little risk but eventual large returns, the practice of looking for temporarily low priced stocks from valued companies is a great place to begin. The practice, known as value investing is one that has been practiced for years and can result in great success with only a little background in the practice.
By:
Alan McKnightl
Finance>
Investingl
Aug 07, 2010
William J. O’Neil, an investor, developed the CANSLIM method for stock screening and investing. His goal in doing this was to allow the non-professional investors to get better results from their investments without having to put in the time or effort that is required of a professional investor.
By:
Alan McKnightl
Finance>
Investingl
May 08, 2010
lViews: 118
Ruff up your stock strategy by running with the Dogs of the Dow investment strategy
Not everyone has the time to research the stock market thoroughly enough to make solid stock purchases, and for novice share traders, wadding into the stock exchange can be a frightening thought. However, by running with the Dogs of the Dow strategy investors of all skill levels can make a solid investment based on one simple formula that has been paying out almost 18% returns every year end for the last twenty years making it the closest thing to a sure thing that exists in the stock market.
By:
Alan McKnightl
Finance>
Investingl
May 08, 2010
Learn How to Replicate Warren Buffet’s Genius with Technical Stock Screening Tools
Warren Buffet is without argument one of the most brilliant and profitable stock traders of the last century. Those that want to turn over a reasonable profit in the stock market as well would do well to learn by his example. However, while Buffet had to perform in-depth research in order to compile his next stock trading option, modern technical stock screening tools exist today that allow you to get the same result with considerably less of a time investment.
By:
Alan McKnightl
Finance>
Investingl
May 08, 2010
lViews: 123
Exploring the use of technical stock screening tools
If you plan on investing in the stocks technical screening tools can save you not only a large amount of time, but also help you choose the most profitable stocks based on your trading criteria. With unique specifications and customized stock queries, if you want to maximize your presence on the stock market it is worth taking the time to check out technical stock screening tools.
By:
Alan McKnightl
Finance>
Investingl
May 01, 2010
Submit
Your Articles Here
It’s Free and easy
Sign Up Today
Author Navigation
My Home
Publish Article
View/Edit Articles
View/Edit Q&A
Edit your Account
Manage Authors
Statistics Page
Personal RSS Builder
My Home
Edit your Account
Update Profile
View/Edit Q&A
Publish Article
Author Box
Alan McKnight has 16 articles online
Articles Categories
All Categories
Advertising
Arts & Entertainment
Automotive
Beauty
Business
Careers
Computers
Education
Finance
Food and Beverage
Health
Hobbies
Home and Family
Home Improvement
Internet
Law
Marketing
News and Society
Relationships
Self Improvement
Shopping
Spirituality
Sports and Fitness
Technology
Travel
Writing
Accounting
Banking
Credit
Currency Trading
Day Trading
Debt Consolidation
Insurance
Investing
Loans
Mortgage
Personal Finance
Real Estate
Taxes
Wealth Building
]]>
Need Help?
Contact Us
FAQ
Submit Articles
Editorial Guidelines
Blog
Site Links
Recent Articles
Top Authors
Top Articles
Find Articles
Site Map
Mobile Version
Webmasters
RSS Builder
RSS
Link to Us
Business Info
Advertising
Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2011 Free Articles by ArticlesBase.com, All rights reserved.
Alan McKnight is a successful trader and an author of many articles devoted to stock trading. His deep expertise in technical analysis, fundamental analysis, investment and stock picking strategies has made him a well respected member of the financial community. As consultant, Alan has participated in developing various stock screening tools including Technical Stock Screener. Alan has frequently been published in national publications, and he is always glad to share his years of experience and knowledge with other stock traders and investors.
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
0 Comments.