When investing in the stock market, particularly as a novice trader, there are certain guidelines that are generally proven to mitigate risk and drive at least some profit. Though perhaps you won’t wake up swimming in piles of money, the following guidelines are well-tested and developed around historic characteristics of the stock market. Diversify Your Portfolio – In layman’s terms, don’t put all your eggs in one basket. If all your stock is invested in one company and that company goes under, all of a sudden every dollar you have invested is likely gone for good. On the other hand, if you have a smaller amount invested in a variety of companies, if that one company goes under, it affects your financial well being at a much less significant rate. Similarly, it is also best to invest in companies across a variety of industries. Related companies are often affected by similar trends and news developments, meaning if one struggles, Direct TV Current Offers, even their typical competition is likely to struggle as well. Consider the near collapse of the American auto industry. If your stock holdings were limited to primarily GM, Ford and Chrysler, there would still be no potential relief from stable or good performing stocks in other industries. Read the rest of this entry »
Investors have many factors to consider before they create their portfolio. Perhaps the most important factor is the age of the investor. The current age of the investor plays a big part in how risky a portfolio should be.
A younger investor would obviously want a portfolio with more risk than an investor who is nearing retirement. This is because high risk investments, such as stocks, tend to produce higher returns. However, since they are risky, they can also result in no returns or possibly losses. A younger investor will be Read the rest of this entry »
Most importantly, do not chase assets or “hot picks” based on news or fads. Since asset prices do not follow a deterministic path, every price movement prediction is inevitably laced with emotion, uncertainty and guesswork.
Cut discretionary income and funnel it towards a portfolio. The point is to examine which spending habits give a worthwhile amount of entertainment or any other kind of benefit. Whatever problems exist before a momentary diversion, such as a beer, will exist after it. Small Read the rest of this entry »
In this time of great economic uncertainty, dividend paying large caps provide an area or respite that allow an investor to maintain a portfolio that generates a significant amount of income to aide their lifestyle. There is no surprise regarding why dividend paying large caps are so popular right now; for one, they have investments around the world that can offset losses in areas experiencing recessions with areas experiencing growth. In addition, bond rates and interest rates on cash savings are at all time lows, which limit the amounts of revenue that can be produced from other Read the rest of this entry »
Small caps can be extremely advantageous opportunities for people seeking great entries and exits into the stock market for quick and profitable buys or sales. The first thing to know about small caps is what they are exactly and why they can be better than large caps.
Small cap stocks are basically stocks which have a market capitalization between 500 million and 2 billion. These however are not precise numbers and will definitely vary a little bit depending on different brokers, funds and stock analysts. This is just the average and will small caps normally fall into Read the rest of this entry »
Exchange-traded funds, typically referred to as ETFs, have become a very popular investment vehicle for investors in the past several years. This is due to the fact that they combine many of the best aspects of both mutual funds and stocks.
Just like a mutual fund, an exchange-traded fund holds a variety of investment assets like stock and bonds. Typically, these funds are designed to replicate the performance of a specific index, such as the Dow Jones Industrial Average or the S&P 500. As such, they are very similar to index funds, a type Read the rest of this entry »
If you are considering investing into the stock market, but either do not have a lot of money to invest or do not want to pay a lot in brokerage fees, a DRIP account may be a good option for you. A DRIP is an avenue for companies to offer shareholders an option to buy from a small amount to a large amount of shares, and then have the dividends reinvested. Hence the name DRIP, Dividend Reinvestment Plan.
The advantages to having a DRIP account are that you Read the rest of this entry »
If you’re interested in stocks you better be interested in energy. The two are inextricably linked and the more attention you pay to the market the more you know that following things like compare texas electric rate plans is a good move if you’re looking to buy shares. Here is a list of the top three energy stocks to buy now:
ENSCO International – This offshore drilling factor puts its eggs in the oil basket and if you’re interested in return on your investment, Read the rest of this entry »
There’s a season for best pricing on stocks. Like the seasons winter, spring, summer, and fall reflect a change in weather, the stock seasons reflect change in gain and loss. Stocks seem to have reduced activity during a particular time period and will, with time, resume increased activity. Learning when to invest is the key element to making a profit on your invested money.
Stocks are an investment, and like every other investment, there are certain times that are better to buy or sell. Read the rest of this entry »
Anyone interested in investing in the stock market should start by becoming familiar with the major global stock markets. Here is a list of the ten largest global stock markets according to total market capitalization.
New York Stock Exchange (NYSE) – The world’s largest stock exchange is based in the United States.
Tokyo Stock Exchange – Japan’s largest stock exchange is commonly referred to as the Nikkei.
National Association of Securities Dealers Automated Quotations (NASDAQ) Read the rest of this entry »