Beating the Market Strategy
The goal of many investors is to beat the market. They aim to do this by using their stock investments.
Investors establish different schemes in order to beat the market, making them as secure as possible if this is possible at all.
However, establishing as a goal the beating of the market may not be enough to achieve financial success. This means that other considerations should be made.
Most investors consider the S&P 500 Index as the best result that the stock market should strive to achieve. However, the S&P 500 includes large cap stocks, which makes it a not so suitable choice in some cases.
This is so since large cap stocks don't respond in the same way as small and mid cap stocks to the influences of the market. Therefore, if you are comparing small and mid cap stocks or groups of stocks, you should establish another criteria, different from the S&P 500, toward which to measure their performance.
What is more, if an investor strives to achieve long-term growth for his/her stocks, beating the market may not be the right tactic to use.
In order to achieve long-term growth, most companies focus on investments that do have an effect in the short earnings. However, the value that is added to the stock is reflected in the long-term growth of the company's stock.
Many companies prefer to incur short term losses, but with the aim of obtaining long-term profits. Additionally, there are many cases in which companies have protected unprofitable in the short-term departments, because they see in them potential for long-term profitability.
Finally, we recommend the investment in companies that direct their activities in the achievement of short-term profits if you really want to follow the tactic of beating the market.
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- Investing According to Dow Jones Industrial Average
- Allocating for Investing Purposes
- Stock Trader vs Company Investor
- When to Buy and Sell Stocks
- Before You Buy Stocks
- Bull and Bear Market Strategies
- Electronic Trading vs Stock Exchange Trading Floor
- Long-Term Stock Investment vs Short-Term Trading
- Stock Market Prices and Buying Strategies
- Personal Reasons for Selling Stocks
- When to Sell a Stock
- Direct Stock Purchase Options
- Stock Portfolio Diversification
- Dogs of the Dow Investment Strategy
- Purchasing Your Company’s Stock
- DRP Types and Benefits
- Dogs of the Dow Performance
- Investment Strategy Types
- Common Stock Investing Strategies
- The Warren Buffett Way - Principals for Successful Investment
- Value Investing Basics
- Has the Time for Selling Stocks Come
- Selecting Your Investing Strategy
- Dollar Cost Averaging Benefits
- Determining the Number of Stocks to be Included in Your Portfolio
- Ex-Dividend Date - Why It Matters
- Constructing a Successful Stock Purchase Plan
- Understanding After-Hours Trading
- Strategies to Deal with a Down Market
- Stock Market Day Trading
- Strategies to Deal with a Weak US Dollar
- Buying Stock on Margin
- Stock Price Forecast
- Stock Option Strategies
- SEC Order-Handling Rules
- Stock Portfolio Balance Maintenance Techniques
- Short Interest Ratio Monitoring
- Holding Your Securities: Physical Certificate
- Holding Your Securities: Street Name Registration
- Holding Your Securities: Direct Registration
- Management of Investment Decisions Through Stock Screens
- Direct Stock Purchase Plans
- Down Market and Discounted Stock Opportunities
- What Investors Need to Know about After-Hours Trading
- When to Apply Averaging Down
- What Investors Need to Know about Auto-Trading Programs
- Financial Analysts: NYSE and NSAD Rules and Disclosures
- Insider Trading Tracking
- Asset Allocation – Choosing the Best Allocation Strategy
- Investing in Equity-Indexed Annuities Explained
- The Pros and Cons of Exchange-Traded Funds
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- Characteristics of Variable Annuity Products
- Diversification of Assets
- Rebalancing Your Assets
- Cross-Market Trading Circuit Breakers
- Margin Requirements for Pattern Day Traders