Why did your buy that stocks, was it the "numbers" or was it the sizzle?"

There is always something about an issue that attracts you to it and motivates you to buy.  For some people, it is the numbers.  They go through the balance sheet, they check the ratios and cash flow and just play with the numbers until they're convinced "this is the one."

Other people don't care what the numbers add up to, it is the "story" about the product or plans or something that puts "sizzle" and excitement into their motivation.  They just want to own that stock.  Hey, look in the newspaper at the long list of company names and when you finally find your stock, think about who else is looking at it also.  There has got to be other players on that issue.  Check the volume and see.

Now ask yourself why did they buy it; what was their motivation, at what price, when and was it the numbers or the sizzle?

Those are too many questions to answer now, but I can tell you that whatever attracted them to that particular issue is most likely that same thing that brought you in as a fellow investor.  Ideally your stock has both fantastic numbers which indicate big profits and future growth, and a hot sizzle of a story to entrance the investing community.  Both are best.

The more buyers that are attracted to that stock the better the chances are that the price will appreciate; and that's what we all want. One more thing.  Pick a stock that is easy to find, get quotes on and research.  The easier it is, the more potential buyers it will  have.  At some point in time after you have taken your position, you want the whole world to wake up and discover what you've know all along is a "winner."  That's when the numbers pay off and the sizzle becomes reality.

Return to Stocks and Shares Learning Room Index