low risk investments

Low Risk Investments

By: www.CandleStickForums.com

http://www.candlestickforums.com/

In times of economic turmoil low risk investments are

attractive. In times of high inflation low risk investments may lose ground to currency

devaluation.



When there are stock market crashes low risk investments are solid ground to stand on

when everything else is quicksand.



Picking stocks that are low risk investments helps

preserve investment capital. Seeking low risk may also cause the investor to miss

growth opportunities.



Low risk investments are often low return investments.

In stock investing a company’s record of paying dividends is often used as a

measure of low risk.



Companies like Archer Daniels Midland have been

paying dividends since 1927, Becton, Dickenson, and

Company since 1926, and Exxon-Mobile since 1882.



One of the low risk investments with persistent

dividend payments is Colgate-Palmolive which has paid

uninterrupted dividends on its common stock since 1895 and increased payments to

common shareholders every year since 1963.By: www.CandleStickForums.com


Investing in dividend stocks with a long record of

uninterrupted payments is a means of limiting risk. It may not be the most reliable route

to the best profits.



While one investor is holding on to a low paying but reliable dividend stock

another is assessing market volatility, using Candlestick analysis to predict market

reversal, and buying puts or buying calls on volatile

stocks.By: www.CandleStickForums.com


There are other ways to engage in low risk

investments besides buying and holding dividend stocks.



Options trading allows one to contain investment risk while gaining the right to buy stock or sell stock at a priced fixed

by an options contract.



Even if one is invested in a stock that has paid dividends for a century without fail that

does not guarantee a good rate of return on investment

going forward.



Long term investing as well as day trading do best with a combination of fundamental

and technical analysis.



Using tools such as Candlestick patterns to

assess market sentiment can alert both trader and investor to when to buy or sell stocks.



Assessment of the margin of safety of a stock and intrinsic stock value are often better guides to whether to hold a

stock than its record of dividend payments.



Investment risk is limited to the price on an options

premium when one buys calls or buys puts on a stock.



The best low risk investments are often those investments that are well understood and well researched. They are not risk free in the sense that the investor can purchase a stock

and walk away.



They are low risk investments because investors or traders

have analyzed these stocks by looking at the fundamentals

and then following stock price patterns with technical

analysis tools like Candlestick stock charts.



An investor who uses Candlestick pattern

formations to guide himself in buying stock, selling stock, buying options, and selling

options reduces his investment risk while

increasing his opportunity for substantial gains.



Traders and investor have profited from using

Candlestick charting techniques in trading stocks,

options, commodities and futures for years. Using

Candlesticks one is commonly able to increase the chance of profits and reduce investment

risk in stock trading.By: www.CandleStickForums.com


low risk investments

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