Authentic Mountain Hardwear store online sale

Choosing the Right Stocks for Your Portfolio

Modern development of the world financial system allows investors to move their investments easily across borders. It is hard to imagine this situation 30 or even 15 years ago before the age of modern computing. Investors nowadays can easily sell Sanofi stock at Euronext Paris and transfer their money to buy China coal at Hang Seng stock exchange once they see profit.

Financial analysts in general agree that usually it is a good idea to avoid questionable stocks that are not very liquid and concentrate instead on the blue chips. Blue chips are available from all major stock exchanges and are used to construct various stock indexes with Dow Jones Industrial average being the most widely used. However, recent technological advances open the entire world to investors who look for profit opportunities. For example, if investors believe in German reliability she can purchase one or a few stocks that constitute stock DAX index such as Adidas ticker.

If French cognac sounds like a nice gift to you then buying French stocks in CAC-40 sounds like a great idea. If you want to profit on fast Asian growth then you can buy some of the blue chips in Hang Seng index. One should not forget about one of the largest financial centers in London with 100 valuable stocks in FTSE-100. Another strategy that a beginner can choose is to concentrate on one particular industry. For example, if you expect the oil price to go down then automobile giants such as BMW in Germany and Renault in France are likely to gain profits on the expending market. Alternatively, if global warming leads to farm winters then power companies may go down the drain. In this case, short-selling such stocks will make you rich.

Of course, the best recipe for your investment decisions is to do some analysis before you buy or short-sell stocks. You may look at price forecast or some of the technical indicators such as Relative Strength Index. These tools have been used by thousands of day traders and helped them to make wise investment decisions. The stock research that large firms provide can be misleading according to certain securities regulators.

The independent stock research firms provide independent investment advice to the individual investors through their brokerage firms. In particular, they help to answer the question of how to forecast stock price. These firms take lots of efforts in analyzing the trends of the stock markets and determining the various stocks that have the potential for higher profits. The technical analysis of stocks that they provide in their reports is very useful to the day traders.