Picking Stocks – The Basics The most challenging aspect of starting to invest is picking the first few stocks to add to a portfolio. Every investor has their own techniques and strategies, but we want to give you the tools you need to place your first trades, and get your portfolio off to a running start. Establish Goals Before choosing your first stock, the first … Continue reading How To Pick Stocks
How Do I Build a Diversified Portfolio? Understanding what it means to build a diversified portfolio is one of the first concepts a new investor needs to understand. When talking about stocks, diversification means to make sure you don’t “put all of your eggs in one basket.” What Does It Mean To Diversify? Simply put, to “diversify” means to make sure pick a variety of … Continue reading Portfolio Diversification
The most challenging aspect of starting to invest is picking the first few stocks to add to a portfolio. Every investor has their own techniques and strategies, but we want to give you the tools you need to place your first trades, and get your portfolio off to a running start. Establish Goals Before choosing your first stock, the first step is deciding what your … Continue reading Getting Trading Ideas
How Do I Build a Diversified Portfolio? Understanding what it means to build a diversified portfolio is one of the first concepts a new investor needs to understand. When talking about stocks, diversification means to make sure you don’t “put all of your eggs in one basket.” What Does It Mean To Diversify? Simply put, to “diversify” means to make sure pick a variety of … Continue reading How do I diversify a portfolio?
There are a couple of different strategies that you can employ to build a stock portfolio: 1) You can take the risk that the products will not be good, and buy the cheapest brands of everything on the list; 2) You can buy half the things on the list from the discount aisle, while splurging on good brand names for the other half; or 3) You can avoid the risk of disappointment and buy just big brand names.
A portfolio is a collection of assets that contribute collectively to an overall return. There are many different reasons you could create a portfolio, and you need to define your reason or objective from the very beginning before adding stocks and other securities to your account.
The question of when to sell stocks is not easily answered. On the one hand, you know a correction is coming but the question of “when” isn’t so clear. Anyone who has ever sold early only to stand by and watch others reap in huge profits have felt the pain of premature sales.
It is impossible to predict what the market will do today, tomorrow or next year, but there is one thing that is definite: markets go up, they go down, and they stay the same.
The golden rule of stock investing dictates cutting your losses when they fall 10 percent from the price paid, but common wisdom just might be wrong. Instead, use some common sense to determine if it’s time to hold or fold.
Buying what you know takes advantage of your familiarity with a product or market and translates that knowledge into potential earnings. Think of it this way; good investors understand opportunity and risk.
Small cap stock investing is volatile. That is one of first things you should know and understand. So, why risk your money by investing in what is typically considered risky business?
Diversification to reduce risk should seem obvious to most investors but a surprising number of people follow their instinct rather than intellect when it comes to investing.
The buy and hold strategy is essentially just what it sounds like: Purchase stocks and then hold them for an extended period of time. The underlying assumption for the buy and hold strategy is that stocks tend to go up in price over extended periods of time.
Learn the classic market cycles of accumulation, mark up, distribution and mark down so that you can time the market -consistently – and make steady profits any time.
Stock market prices are affected by business fundamentals, company and world events, human psychology, and much more.
Day traders buy and sell the same stock (or other investment type) within a single trading day.
The following strategies are used to trade ETFs.
A stock investing tactic where you purchase the ten DJIA stocks with the highest dividend yield at the start of each year.
There are many research tools available and many of them are free. Of course, there are some very sophisticated tools that come with hefty price tags; however, for most investors all the research they’ll need is free or available for a modest subscription.
Steps to consider as you make your first trade.
Factors that contribute to selecting your trading strategy include: personality, goals, amount of investment capital and comfort zone.
Traders, investment firms and fund managers use a trading strategy to help make wiser investment decisions and help eliminate the emotional aspect of trading.