Business Strategy: The Fundamental Analysis Of Samsung Business

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1. Scalping:
The act of selling as soon as the trade becomes profitable, even if it is only a mere profit. Therefore, traders will buy multiple shares from different companies and sell immediately even if it is a few cents higher, because many small profits will eventually turn out to large profit gains. However, traders must have a strict selling strategy, meaning not selling the stocks, trusting that it will go up even more, thus, making the whole strategy in vain.
2. Fading:
A very risky strategy, requiring trader to have a high risk tolerance. Trader would buy a stock when it is failing and sell it when it starts to rise. This might sound very easy, but there are numerous times where the stocks never, or take a long-period of time to
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1. Fundamental Analysis:
It is regarded as one of the best ways to evaluate the value of stocks. The objective is to discover their true value by examining many factors including debt load, profit margins, cash flow and P/E ratio and etc. For example, if a trader was to analyze Samsung Electronics, he/she will look at every single factor that can affect the stock’s value, such as the smartphone market and their management. And in the end, if the company is over-valued, the stock will be sold and if it is under-valued, it will be bought.
2. Past performance:
Simply buying stocks based on past performance. However, many investment advisors don’t recommend this strategy due to one reason. Many people buy high-performing companies simply because they are doing well, and don’t even know why. For example, during 1997 and 2000, Nokia’s stock value skyrocketed; however, it was bound to go down because they lacked the capital and the infrastructures by Samsung and Apple to keep up their value. And this is the
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Value Investment:
A bit similar strategy to the fundamental analysis mentioned above, it involves buying stocks that are under-valued by the market. It is more likely that the majority of these companies will be public companies and very few in the technology industry. The buyer will look for low P/E ratio (high P/E ratio generally anticipates high hopes for the company), high dividend yields (higher dividend yield means steady cash flow and more money paid to you in general) and etc. So, to sum up, it is simply buying stocks that are priced lower than it is actually worth.
5. Dividend Investment:
Dividend yield is a ratio that indicates how much a company pays back the dividends annually compared to its share value. It is a way to calculate how much cash you are receiving from the company. What dividend investors do it fairly simple. They find companies that have high dividend yield and buy them because those companies will provide the share-holders with consistent cash-flow and therefore, prove itself that the company is financially stable, low-risk and healthy. Many buyers, typically people looking to retire prefer this to desire retirement income.
6. Dogs of the
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