It’s often a better choice to buy various different stocks that may not all be profitable, such as a food many, a retail company, and an insurance company, as you diversify your stock portfolio and instead Of expecting only profits or only losses in your stock, you can balance them out (Rosemary 1). The diversified portfolio theory helps one make a good investment, while expecting less losses, since there is more variety in your stocks, and so, some stock prices may increase, while some may decrease.
This is a better investment as you may gain profits, or may balance your profits with your losses, and minimize the chances of losses when investing your money. A theory, such as the backup theory can also rove why diversification in stocks is important. I invested in stocks such as the oil sands, telecommunication services, retail, food market, and the hardware stores to have investments in various different fields or industries, so that if one industry is in loss, I can rely on another industry doing well (Hilbert 1).
To make a good investment in stocks, one must also have realistic expectations of a company’s profit, and not only expect profits. Before purchasing the Tells stock, I realized that the company had fluctuations in their dividend as sometimes the dividend would increase, yet sometimes it would fall. As an investor, its better to look at the whole picture and understand that prices will fluctuate, but holding on to the stock for a longer period of time may also increase the value of the stock, depending on whether the value of the stock also appreciates (Rosemary 2).
All in all, many theories can explain when it is a good time to invest in stocks, for which an investor can experience more profits than losses. To make the maximum profit, an investor should sell their stock when the price of the stock is high, and then buy again when the price of the stock is low. This way, you can buy the stock for a cheaper price and make money by ailing it for a price higher, since it is more in demand (Keeper). Many investors should understand that stocks prices vary at different times.
Stocks are often very unpredictable and sometimes, all of a sudden, they may not follow the usual trends. As an investor of the ten stocks, I chose to invest for a longer period in the stocks find are more stable through there trends such as Tim Horror’s and the Canadian Oil Sands. I feel to make some profit out of my investment, it is best to sell all stocks at a time when their prices are high, as this would enhance my profits. To determine when it is a good time the rice is high for me to sell, I would wait for the divided to increase above the average dividend price.