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Stock Market Tips That Will Truly Change Your Life
Is owning a portion of a corporation something that appeals to you? If ...
Follow the dividends of companies where you own stock. Older investors who are looking for stable,
dividend-paying stocks ...
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Stock Market Tips That Will Truly Change Your Life

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Is owning a portion of a corporation something that appeals to you? If so, then stock market investm...

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Stock Market Tips That Will Truly Change Your Life

  1. 1. Stock Market Tips That Will Truly Change Your Life Is owning a portion of a corporation something that appeals to you? If so, then stock market investment might be for you. Before you go take your life's savings and buy a lot of stock, there is some important information that you need to know about investing in the market. The following article contains this advice. When you are investing your money into the stock market, keep it simple. Your philosophy of investing should be easy to understand. The stocks you pick should be things you understand. Do not take on undue risk, much like you avoid blowing your whole paycheck on lottery tickets. Keep things simple. Be realistic about your expectations upon investing. There is no such thing as overnight success with the stock market if you follow sound trading techniques which focus on long-term success. Avoid this kind of unrealistic thinking, which can lose you a fortune, and invest for the long-term. A good rule of thumb is to invest a maximum of 10% of your total earnings. If the stock declines rapidly later, the risk you may experience is reduced. If you are new to investing, make sure your investment strategy is simple. It can be tempting to diversify right away and try everything you have read about or learned, but if you are new at investing it is best to find one thing that works and stick with that. This ends up saving you a whole lot of money in the end. Don't over invest in the stock of the company you work for. It's important that your entire portfolio isn't based on a single company's stock. Your risk of loss of a large amount of money is greatly increased in the case of poor performance or company failure. Cash does not always mean profit. A bank account balance is always essential, whether it be for your personal needs or investment portfolio. It is good to reinvest or just spend your earnings, but keep enough money on hand to pay your immediate bills. Keep 6 months worth of living expenses stored away to be safe. Do your research about a company before investing in it. Lots of times, people hear about some new business that appears like it's going to be very successful, and then they decide they should purchase some of their stock. If the company fails, you stand to lose a substantial amount of money, so a little research is worth the effort. If you plan on using a brokerage firm for your investments, make sure they're trustworthy. A firm may promise high returns on your market investments, but they may not back up those claims with credentials or education. Research brokerage firms online before settling on one. If you're a United States citizen, get yourself an IRA account and put as much money into as possible. Most middle-class citizens qualify for this opportunity. This type of investment is definitely long term. It's important that you realize that an IRA is an investment for the future and not a quick tool for profiting.
  2. 2. Follow the dividends of companies where you own stock. Older investors who are looking for stable, dividend-paying stocks will find this particularly important. When a company is profitable it usually pours the money back to the business or offers dividends to shareholders. The yield of a dividend is easy to understand: The annual dividend figure is simply divided by the current stock price. It is important to consider a company's voting rights when determining if you'd like to invest with them. Sometimes, corporate management teams hold only five percent of your stock, but the voting power control can be around 70%. If you see a company such as this, skip it. Expect to hold your stocks for the long term. If you plan on staying in the market for just a short period of time, you will most likely lose money. If you have invested in solid companies for the long- term, a few temporary setbacks will not affect your eventual success. Sound portfolios can generate returns in the area of 8 percent, while terrific ones may bring 15 or 20 percent. However, you must remember that no matter what the perceived risk level the stocks in your portfolio can suddenly change, for the good or bad. Choosing your investments is not easy, but with research, diversification and discipline, your portfolio will start to reflect your decisions positively. You should think about buying some good investment software. It will make it easier for you to track stocks and better understand your investments. You definitely want to re-examine your portfolio at least quarterly to verify that your diversification remains the same. There are many choices for investment software. Research them to find one that works for you. Now that you've read this article, are you still interested in investing in stocks? If the answer is yes, then get ready to take the first steps in trading in the stock market. Keep all of the information you learned in mind and you should be selling and buying stocks soon without losing all of your money.

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