Marc Cuniberti: Help with stock picks?
Stock prices are the antithesis of perceptive reality.
Since all public stocks trade in milliseconds, how can the stock of ABC Company have buyers at the same time there are sellers?
It’s because each investor can perceive the value of a stock differently. Add up the millions and millions of investors and their perception about what a stock is worth at any particular moment in time and you get a publically traded moving stock market, which is what we have in the markets of the world.
Different and changing perceptions all transpiring at one time. Somebody thinking a stock is a sell while some perceiving the stock is a buy while others choose to do nothing and sit.
How do we then successfully select (successfully perceive) when a stock is a good buy and when it is a time to sell or doing nothing at all?
That is the million dollar question!
Every investor in the world asks that question yet few understand truly that perception is just that, YOUR perception of what a stock is worth and will it go UP after you buy it.
Most investors think information available to everyone is enough to make up their mind to buy a stock.
An example would be to buy a cell phone company stock because they will sell a lot of cell phones. Since that information is a no brainer and everyone knows this, the stock price ALREADY reflects that. Keep in mind everybody has the same information you do, so odds are the stock price is already valued to reflect all the public information available.
To pick a stock that has the potential to go up is difficult to say the least. Most stocks will go UP if the market goes UP but that’s never a given. Bad news or poor sales could make a stock go DOWN even if the market goes UP!
An investor should accept the best he can do is increase his ODDS of picking a winning stock and that starts with asking for help.
This article expresses the opinions of Marc Cuniberti and should not be construed or acted upon as individual investment advice. Marc Cuniberti is an Investment Advisor Representative through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cuniberti can be contacted at MKB Financial Services 164 Maple St #1, Auburn, CA 95603 (530) 823-2792. MKB Financial Services and Cambridge are not affiliated. Website: moneymanagementradio.com
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