15 Ways Professional Investors “Outsmart” the Stock Market


15 Ways Professional Investors “Outsmart” the Stock Market

High Dividend Stocks

Darren415

Darren415

Want stocks that continually pay you for simply holding onto the stocks? Look towards high dividend paying stocks. There are companies that pay profit sharing dividends with investors, which may be annually or quarterly. Either way, this is an investment you can cash in any time while also netting yourself money throughout the year.

Recurring Deposits

2a recurring deposits

Yellowj

This not only is a way to make money quickly through the market, but it also comes with very little risk. These provide a high rate of interest and you can use it similar to a savings account. You should always have money on hand for your next investment, and putting the money into this kind of an account with grow your money exponentially faster than the other options out there.

Play With Time Zones

3 Play With Time Zones

mastermilmar

Look toward both Asian and Europe to see how the United States market will open. When these markets perform well, there is a good chance the U.S. market will open up. This sets you up for what you might want to do. By knowing the stock market is going to shoot up, you can buy quickly early on, let it ride up and then sell. If you day trade, this can help you outsmart the market by just time zone watching.

Opening and Closing

4 Opening and Closing

who_is_danny

This is similar to the time zone feature. Buying and selling at the beginning and ending of the day is a good idea because most prices for a stock at the start and end of a day are based on sentiment and how people feel about the stock, not based on the company itself. This is another day trading technique

Pre-Market Forecast

pre market forecast

worradirek

The time zone game isn’t the only bit of pre-market information you need to check out. Check how stocks are trading early on. While the price won’t vary yet, you can see how much is going into the market. If European, and more importantly Asian, markets are closing up and the pre market trading is up, you know the market will likely continue up (the same with down markets). However, if the pre-market is up while Asia is down, you may want to hold off and watch to see what happens.

Company News

6 Company News

bloomua

This is almost like insider trading – but legal. Watch company news. When you stay on top of recent developments you can be the first to buy or sell based on these developments. Most traders will not jump on the bandwagon for an hour or more. You need to move quickly, but if the news is good or bad, you can adjust your investment accordingly.

Gauge and Move

7 Gauge and Move

imageflow

To make money on the stock market and to really outsmart the system, you need to gauge and move quickly. You can’t drag your feet on this. Quickly analyze what is going on, look at the market and make your move.

China Small Cap Stocks

8 China Small Cap Stocks

creativa_images

You don’t need to keep your investments within the United States to make your money. China has been a booming economy for some time now and it makes it possible to really make money quickly. With small cap stocks in China, you can pick up strong performing stocks that have a fast turn around value. With the continued stimulus pumping into the economy out of Beijing, you’ll see a nice return on investment quickly.

Look Toward Russia

9 Look Toward Russia

william_potter

Russia is one of the most overlooked investment opportunities on the market and it is why those in the know can turn to it to make sizable gains. The ruble hit a record low against the U.S. dollar at the end of 2014, but it has been performing exceptionally well as of late (after hitting rock bottom many economies turn around and become promising investments).

Save for Risks

10 Save for Risks

almagami

The true way to make a large sum of money off of the market is to invest in risk. The higher the risk the higher the reward. However, a single risk that pays off can make up for a dozen failed risks. Instead of just dumping all your money into safe stocks (you should have safe investments to fall back on), have some cash saved away for that risk investment that could potentially pay off big.

Rebalance and Invest

11 Rebalance and Invest

Andrey_popov

Shift money around and rebalance your portfolio. Move money out of dying stocks that are not performing so when everything is balanced again you have money to move into those risks or other investments. Never just sit on your hands with poor performing stocks. To outsmart the system you need to set yourself up right.

Sometimes Long Term is Best

12 Sometimes Long Term is Best

nonwarit

You can still outsmart the system with a long term option. Consider the long term business bond investments. These bonds come from companies that can pay higher rates than a federal bond. Go with one from a company that has a solid background so there is a greater chance it will be around by the time you are to collect.

Avoid the Herd

13 Avoid the Herd

Nicholas_piccillo

Most buyers flock together. The problem here is they often are just buying because everyone else is buying. Ever heard the saying “you’re either a sheep or a shark?” Don’t be a sheep.

Cut Emotions

14 Cut Emotions

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Emotional investing is probably the worst things you can do and the professionals out there will tell you always avoid using emotion during a trade. It will likely backfire.

Monitor Everything

15 Monitor Everything

SFIO_CRACHO

Don’t just monitor your own stocks. Monitor the international markets, stay on top of closings and openings, and don’t go against your guy. Going against your gut will end up costing you more often than not.