What is Bottom-Up Investing?
Bottom-Up investing is a trading approach which contradict bottom-down investing approach. In bottom-up investing approach the trader chooses company stocks based on merits of companies/stocks not of the sectors/industry.
Bottom-up investors believe that a strong company can provide them profit even if the industry is not so bright. They rely up on the company’s management, business model and growth prospects. Bottom-up investors select companies by through fundamental and technical analyses. They focuses one the companies history, its stock price history, services and products offered, financial stability, dividends provided, price-to-earnings ratio, etc.
The basic features of a bottom-up investing approach are fast return from investments, high visibility, high deployment coverage and higher impact to the organization. The advantages include product/service/user awareness, not need extensive searches and analyses, etc. The disadvantages of bottom-up investing are possible failure in assessing companies and unexpected events can affect your earnings.
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Bottom-up investors believe that a strong company can provide them profit even if the industry is not so bright. They rely up on the company’s management, business model and growth prospects. Bottom-up investors select companies by through fundamental and technical analyses. They focuses one the companies history, its stock price history, services and products offered, financial stability, dividends provided, price-to-earnings ratio, etc.
The basic features of a bottom-up investing approach are fast return from investments, high visibility, high deployment coverage and higher impact to the organization. The advantages include product/service/user awareness, not need extensive searches and analyses, etc. The disadvantages of bottom-up investing are possible failure in assessing companies and unexpected events can affect your earnings.
NobleTrading.com Offers Online Stock Trading, Online Options Trading
Online Futures Trading, Online Forex Trading
Worldwide Brokerage Service, Day Trading Brokerage
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