Stock trader types
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This document outlines three main types of stock trader: growth centered, value focused, and income oriented. Growth centered traders invest in companies expected to experience above-average earnings growth. Value focused investors search for underpriced stocks compared to competitors, though the company's dealings must not be manipulated. Income oriented traders take a conservative approach focused on capital preservation and steady returns through large, stable companies or industries like certificates of deposit.
Stock trader types
- 2. Growth Centered Trading • • • • • • • Buying a stock from a company that will grow Investing in new companies Dragon’s Den Company grows = Value of stock rises RISKY but could be quick money Lots of research in company Earnings grow at an above-average rate
- 3. Value Focused Investing • Look for underpriced stocks • Trick to finding them: Look for company’s stocks that are priced lower than competitors • NOT VERY RISKY • BUT make sure that the company has not manipulated the dealings to make the stock fall ▫ They can do this by “pumping and dumping” through promotion
- 4. Income Oriented Investing • Very conservative • Capital preservation and low stock price fluctuations • Relying on a “slow and steady” rise • Investing in BIG companies or industries (i.e. Certificates of Deposit they are boring) ▫ Deposit money into a financial institution for a limited amount of time with a fixed interest rate
- 5. Good Websites to Check Out: • http://www.forbes.com/sites/lawrencelight/201 3/01/07/how-to-find-low-risk-high-returninvestments/ • http://en.wikipedia.org/wiki/Market_manipula tion • http://www.rense.com/general86/MANIP.HTM • http://www.investopedia.com/university/introd uction-stock-trader-types/