Tag: good investment

  • Biotech Stocks Are A Good Investment

    Biotech Stocks Are A Good Investment

    Biotech Stocks Are A Good Investment
    The biotech companies have strong earnings growth
    The Nasdaq Biotech Index (NBI) has slightly outpaced the S&P 500 over the past 12 months.

    Biotech stocks are the most impressive, exciting and, at the same time, one of the trickiest assets of the stock market. Biotech firms use technological methods based on science to produce products. The majority of biotech companies are focused on clinical research and the development of new medicines. 

    But the whole industry has a lot of different purposes, the drugs are just a part of that. You can find biotech stocks on genetic experimentation, food modifications, health care, almost everywhere. One thing is common for every single producer: they have to go through a harsh, expensive and intensive experimental process before getting approval for the market.

    The biotech companies have strong earnings growth 

     Discovering the best biotech firms to invest in can be difficult. Laboratory ideas don’t always come to success and frequently biotech stocks are subject to strict regulations and rules.

    What you have to keep in mind is earnings growth. Biotech stocks are giving exactly that. If you are looking for great rewards, the biotech stocks are for you. One thing is important to be noticed here: these stocks carry a big risk too.

    Biotech stocks have great potential

    Well, there is an explanation of why that is. Every company needs time to develop its business, operations, presence in the market. Biotech companies frequently depend on the success of several trials of their products. During that phase, its stock isn’t expensive. Contrary, it can be very cheap. When the company gets approval for a drug or some positive news about testing comes, the stock price can skyrocket. Refusals or bans, though, can cause a disaster. So, for normal investors, it can be difficult to gauge how the testing of some drugs or anything from the field of the biotech industry will end. Well, here is one suggestion. Stay tuned on what the analysts who are well informed in the biotech industry are saying. If you see a stock that is frequently surrounded by bulls, it is a sign that something worth is nearby. 

    Recognize your biotech stock better than anyone

    We will show one example of how to do so.

    Axsome Therapeutics is developing new drugs for the treatment of CNS disorders. Yes, it is clinical-testing stage and biotech stocks can be uncertain for investors. But this stock is remarkably fit for any investor with an aggressive approach to investment.

    AXSM stock has increased over 1.200% in this year. The investors are excited about the upcoming clinical study results. Axsome Therapeutics is in a late-stage study for its AXS-05. It is innovative and important in treating a depressive disorder, so-called MDD. The company is expecting results from another study, a drug for treating treatment-resistant depression, by the end of the first quarter in 2020. Also, the company expects positive results from a study of AXS-05 for Alzheimer’s disease in the first six months of 2020. And stock market analysts are predicting a huge revenue for the company and the shareholders. So, the hint that some biotech stock is a good investment is coming from the news.

    How to pick the best biotech stocks

    Over the past year, the Nasdaq Biotech Index (NBI) has kept up with the market.
    This year has been a hard ride for everyone. But the biotech sector, with its large firms, is definitely catching its pace. The index is rising. We were witnesses of interesting mergers during the past several years that starting to be profitable. Some new technologies are starting to gain excellent results which boosts hope for many patients. The cost of their tests is enormous, it is around $2 billion approximately. Also, it takes almost 10 years until some drug gets permission for distribution and human usage.
    It sounds like a lot of responsibility. Moreover, producers need to form a strong base for future growth.

    If you are focused on biotech stocks you should find biotech companies that are driving cutting-edge therapies. The brands that are well-positioned provide big premiums.

    Traders-Paradise recently wrote about one of them, but stay tuned, there will be more.

  • How To Avoid Bad Investment?

    How To Avoid Bad Investment?

     

    2 min read

    To avoid bad investment can be very tricky.

    ‘Human beings have certain innate tendencies that don’t always lead to the best investment choices,’ says Mark Riepe, senior vice president at the Schwab Center for Financial Research.

    What is a good investment? Or How to avoid bad investment?

    Both are very tricky questions. At the same time, they are quite simple if you follow a few steps. Why?
    You can see, there are always several important events happening at the same time in the global economy and the capital markets.

    Earnings reports, inflation readings, central bank decisions, trade deals, geopolitics with weighty implications.

    Altogether, these factors hold some influence over the direction of stocks and bonds. It makes sense that investors would want to consider each one closely when making an investment forecast. 

    Being analytic and detail oriented makes sense and is very positive in my opinion. If you want to avoid bad investment

    Where is the catch?

    Investors too often overemphasize the negative, more fearful or worrisome factors, while giving less consideration to the pricing power of the positive factors.

    But it’s kinda human nature to be stressed and captivated by uncertainties.

    The cryptocurrency market, for example, attracts investors into the possibility of making huge sums of money quickly, without any clear mechanism for understanding or measuring the risk of the investment.

    And other examples, 2008 financial crisis, the front page of the Wall St. Journal featured an article stating that economic decline, the collapse of the dollar, and moral degradation would lead to civil war in the United States by 2010.

    WHAT?

    That madness and hysteria surrounding the financial crisis gave many investors no choice than to take these forecasts seriously.

    When the world becomes chaotic, any prediction can make sense. But many of those predictions are bad ones.

    You can count on knowledge and experience to help you make smart decisions in most areas of life.

    Investing doesn’t always work that way.

    Even professionals in financial and market fields, often fall prey to the same unhelpful reflexes that are present among investors.

    Fortunately, you can put controls in place to help you set aside harmful impulses. In order to avoid a bad investment.

    We live in a society where many seek to keep up with the Joneses.

    Only a few individuals are resistant to the urge to make a fast dollar.

    It is highly recommended to overcome emotional and personality-driven faults.

    Yeah?

    Honestly, it’s hard to achieve, almost impossible.

    But, one of the keys to success is recognizing that a problem exists, and then devising mechanisms to control or limit bad decisions or risk.

    Investing is all about risk, but the calculated risk is important.

    The first key: avoid bad investment by avoiding confusing investments

    You are more likely to make a bad decision when you lack understanding or knowledge.

    If you just don’t understand the investment or the opportunity sounds tricky then you have to do two things: Ask more questions about it and consult with someone who has more experience than you in the field or product.
    Frankly, when you don’t understand it, don’t invest your money in it.

    Do your own independent research on any potential investment. If you someone offers you an ownership stake in a business, don’t feel pressured to make a decision right away. Demand two to three weeks to make a decision after you’ve received all the details that they can provide. Meantime, you will be able to research similar companies and be assured in your answer as to why or why not you select to invest in this business idea.

    You should diversify your investments.

    Never put all your resources into one investment.

    Don’t put all of your eggs in one basket, is an old saying.

    This rule is valid for investments. If someone recommends you put all of your money in one specific investment is giving you bad investment advice! You must spread your resources through financial products and probably some real estate.

    You have to find a competent investment advisor.

    Make sure that you seek professional help from someone who is educated in the field you’re looking to invest in.

    Don’t take financial advice from someone who isn’t a financial professional.

    The advisor is skilled to analyze a business idea and financial instruments.  An advisor can review fund and stock history. And can give you guidance on the possible projection of the investment, based on market indicators. They can properly explain to you how to avoid a bad investment.

    Bad investment decisions can devastate all your investment, all your capital.

    Don’t be rush or make a quick decision. Investing is a smart and methodical process that cannot be made in a hurry.

    You must take your time and evaluate before making any investment decision to avoid a bad investment.

    A wise man once told, “Measure twice and cut once.”

    Risk Disclosure (read carefully!)

  • Good And Bad Investment

    Good And Bad Investment

    2 min read


    When you work hard to earn money and you earned a surplus that you can invest, you want to make sure it isn’t going to disappear on you. Take your time to carefully understand an investment prior to putting your money into it. It is a very important concept. 

    Sometimes it’s better to miss out on a great investment than it is to be involved in a bad one.

    Of course, there are good and bad investments, but the question is how to tell if something is a good or bad investment.

    The act of accumulating and investing wealth is a dangerous proposition.

    The hardest part of the process isn’t picking the right investments, but rather, guarding our hearts from the greed of money.
    We need to always be aware of the desires and possibilities, especially when money is involved.

    While supposedly ”market-beating” brokers and advisors tend to profit in all market conditions. On the other side, we have the performance of the typical investor over the past 20 years. But we can precisely describe them as shockingly poor.

    There is a lot of confusion surrounding investments, but truth is that investment is anything that you can buy and hold on to in order to gain value.

    Literally, the investment can be anything you can buy and sell.

    The key is to realize there is no such thing as a naturally good or bad investment.

    What I mean is if you make right timing, you can be wrong about valuation and strategy, and still come out with a profit.
    Or if your valuation is strong, you can be wrong about timing and strategy and still come out with a profit. You may have a

    positive expectation with good risk management. In other words, your strategy is good.

    But your profit is assured over time even though any single investment can fail on timing and valuation.

    Successful investing is all in the process: risk management, strategy, and timing. It takes work and effort.

    There is no one-stop solution. There is no magic pill. If you’re looking for instant solution and asking what is a good investment, your thinking is in the wrong direction.


    Everything, but literally everything can be a bad or good investment, depending on the moment you enter, the strategy, the trading plan, investment plan.

    For someone who is trying to identify solid investment opportunities from among various available choices, it would be helpful if you are able to identify financial opportunities as distinctively good or bad.

    However, it’s not always a black-and-white task.

    Some of the processes depend on your own good perception. There are some red marks that forewarn of a potential losing bet. However, as well as some positive signs that could lead to a profitable investment.

    The average investor’s investments underperformed the returns of almost every asset class. Part of the reason for this is the tendency of investors to buy high and sell low.

    In times of market volatility, many investors panic and dump their stocks. They often make poor investment choices. They are seduced by the promise of high returns from investment products. That is difficult to understand and hampered with high fees.

    A good investment is one that meets your goals and objectives.

    A bad investment is one that doesn’t meet your goals and objectives.

    To find good investments you must have an understanding of what is realistic. What kind of return should you expect on an investment? If you have a good sense of what is and is not possible you are less likely to get scammed.

    You must be able to keep your eye on your chosen investment, and this is something that can be hard to do. Not all investments are easy to track in this way. The best thing to do is to make sure that your focus is primarily on material assets, as these are the kinds of things you can easily see, and they are more likely to be easily tracked too. As long as you can keep an eye on your investments, you can be sure that you are doing with it what you should be doing in order to make money.

    I presented you a few essential rules you can use to avoid bad investments and recognize good.

    Those are not must-follow rules. You can think of them more as guidelines. Especially if you’re a new investor, using these rules to stay away from bad investments can help you to make better choices.
    And never look for the big, fast wins. You’ll be crushed.

    Risk Disclosure (read carefully!)