Beware of “cheap” stocks

We are all looking for cheap stocks. Because if they are cheap, they will soon rise. So say our logic. But when is a stock cheap? Here are a review of  the most common tripwires when speaking generally about cheap stocks.

The best that could be desired as a private investor is to buy a cheap stock. To buy cheap and sell expensive is what we all dream about. But just wanting to buy a cheap stock unfortunately opens for a whole series of errors that may come to cost much money.

What determines the price of a stock?

This article explains what controls the price movement of a stock. There are three driving forces: economic growth, industry trends and the company's management. More than half of the share price is determined by external factors, which management has no control of.

When you invest in stocks, it is important to do some analyzing to find the attractive stocks. And let it be said at once: It is not an easy task.

7 investment tips in times of financial crisis

No two crises are the same. Therefore, it is limited what you can learn from individual crises, but you can learn something of how you feel and react in individual economic and financial crises as an investor. Often we make the wrong decisions in crisis situations. Here are seven tips, which should lead you around the bumpiest situations.

Defensive stocks for the more cautious

If your investment horizon is several years, it is perhaps not so important whether you invest in cyclical stocks, or the more defensive stocks. Yet it may be worth to take a closer look at the defensive stocks as you get closer to the time when you plan to make use of your savings.

But let us clarify that there is no scientific evidence that one type is better than the other type of stocks over many years. The discussion goes on whether you have the ability to jump on and off cyclically trends before anyone else, and it is a decision you must make for yourself.

Cyclical stocks for people with confidence

As you might know its smart if you buy a stock cheap and sell expensive. It’s even smarter if you can buy rapidly rising stocks in good times and then replace them with stable when the stock prices start dropping.

It's easier said than done, but it is still a discipline that every equity analyst will try to convince you that he is the champion in. Before you even begin to trade shares on the stock market peaks and valleys, it might be useful to note that private investors indeed constitute a significant proportion of trades on the exchange. But when it comes to volume, it turns out that private investors represent only a marginal proportion of total trade. Put another way: The professionals roll you down, if you're venturing out into a showdown with them.