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Best Ways to Make Money During the Current Stock Market Rally

by gbaf mag
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The current stock market has been on for a remarkable record 10 years now. On average, investors will lose money over the course of each day on the market. September typically performs worse than any other month throughout the year. So it’s no surprise that investors are panicking and frantically seeking some sort of edge or strategy that may give them a slight advantage over the markets. There are a few systems that have been making waves in this market and I am going to highlight just a couple of them below in this article.

One recent innovation that seems to be gaining steam in the current stock market is what’s called a discount broker. These brokers buy discounted stocks from institutional investors (groups that own large amounts of money) at what’s known as a discount. Discount brokers receive their commission based solely on the amount they are able to purchase at that discount, so they are in a position to enjoy great benefits with little risk.

A second method that seems to be garnering some attention is a stock exchange simulator. The stock exchange simulator is essentially an online trading game. It simulates the movement of various stocks through the stock exchange, using actual current stock market statistics and real time quotes. So essentially, it simulates the volatility of the current stock market value, as well as the interest rate fluctuations. Many investors are clamoring for games that provide a good learning experience at no cost, so what’s holding back?

Many large corporations spend millions of dollars every single year hiring investment bankers and corporate strategists to decipher the underlying meanings of market expectations and determine which moves to make. While this may seem like a very worthwhile expense for large corporations, most small and mid-cap companies can’t afford to hire such high caliber specialists. What would a company do with a few hundred or thousand dollars if it invested that money in an analyst who was simply trying to predict the direction of the share price? Most companies couldn’t stand the loss, and would fire that particular stock price prediction expert without another opportunity to try out another hiring.

As a result, it is imperative that small and mid-cap investors diversify their investing options by including a wide variety of safe but highly volatile investments. Among the safest investments are penny stocks. In the last two decades, blue chip stocks have appreciated at an unprecedented rate and are now considered very valuable by many investors due to their reliability and the fact that they do not require much additional management.

Penny stocks represent the best stocks to buy during the current stock market rally. However, it is important to remember that you should never invest more than 10% of your overall investment capital in any one stock. That’s why many savvy investors will hold onto a select number of the best stocks and weather the storm of investing depression. Most people who buy penny stocks during the best stocks are considered to be long term investors who understand how investment value and risk play into their portfolios. If you want to take advantage of the best stocks to buy, it is important to look for solid companies with a good track record.

During the recent economic turmoil, many prominent investors like Allen Stanford and John Mack emerged as big winners because they were able to pick out some of the most undervalued stocks. While it may be difficult to find managers with the right skill set to pick out undervalued stocks, it is easier than ever before to find quantitative analysis tools such as the P/E ratio, price to book ratios, and other tools of fundamental analysis. Many investors will also benefit from using quantitative tools such as technical and fundamental analysis overlays. All of these tools can help you get an edge on the competition.

Perhaps the best way to maximize your investment earnings and take advantage of the current stock market rally is to use high interest-bearing investments. With interest rates being at an all time lows, this represents the best opportunity for savvy investors to profit from rising interest rates. When considering interest-bearing investments, remember that you will always get the most bang for your buck by investing in low-risk, high yield investments. It is best to stick to equities such as stocks and bonds. By focusing on low risk, high yield investments, you will have a much higher earning potential and your portfolio will not suffer when interest rates go up.

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