It’s A Good Idea To Follow Tips When Investing In The Stock Market?

It’s A Good Idea To Follow Tips When Investing In The Stock Market?
When a person has the willingness to invest in stocks, he or she usually seeks to find something about it. He looks at some articles on the Internet, ask his friends if they have already invested and sometimes even buys newspapers and magazines to learn more. But unfortunately, some people do not want to be informed, they believe it will be easier to skip that part and go directly asking for anyone who understands the issue, the so called experts.

I like to call experts, tipsters. The only thing they do is distribute guesses. Some well founded, most not. Often, even if these guesses make sense, just don’t work when they should. The problem is that many experts do not know exactly what they are doing. They think they know where to invest but in reality, they themselves do not invest in anything. They talk about something they simply don’t understand.

Moreover, the few who are really good (rare) and give hints that really work, have a serious flaw, the lack of availability. And that may end up with money from any investor neglect.

To illustrate, suppose that Michael receive a tip to buy some GOOG of his friend, a specialist named John. Once you hear the tip, Michael invests his savings in the indicated stock. Soon, the profits of his investments increase greatly. Soon after, they begin to stabilize and then go down. Down slightly and slowly, but soon begin to go down a lot and with speed.

Desperate, Michael calls John asking what to do but nobody answers. When he finally manages to reach his friend, he discovers that the he should have sold the stock a few weeks ago. But now it’s too late, because the profits are all gone.

That is, if you’re investing in the stock market by following cues from other people, it is very likely that you will lose money because in most cases, these guesses are wrong, even if those were offered by a specialist. After all, if their tips were really good, he would not be distributing them freely. And even if he is a super nice guy, that does not mean that his tips will be always right.

The other point is, if your source of information is very good and reliable, you still need to keep up with it all the time. If you received a tip from purchase of Peter, you should wait for the sell tip from that same guy. But what if at the time of the sale Peter is on vacation? Then you will feel the pain of not knowing what to do and therefore will be forced to depend on the decisions of others.

So as I always say, if you want to buy stocks, you must first learn how to invest in the stock market. Must know the markets, assets, procedures. Need to understand how it works so you can take the reins of your own investments without relying on wrong guesses of others or advice from people who are not always available. Remember, to invest properly, you must learn to invest in yourself first, you need education.

Peter Corrs is a brazilian blogger who writes about the Bolsa de Valores in posts like Como Investir na Bolsa de Valores Passo a Passo and Como Investir na Bolsa de Valores Pela Internet (both in portuguese).

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Let’s Talk Money – Investing in a Way That Actually Makes You Money

Let’s Talk Money – Investing in a Way That Actually Makes You Money

Let’s talk money, shall we? There is a financial epidemic that is taking hold of a certain type of people. It’s not so much a problem with the rich nor is it a problem with the poor. This epidemic is after a certain type of victim: the middle class.

The advent of electronic trading has opened up a new portal for the everyday person. I’m talking about the person who has a full time job, works hard to earn a reasonable living but isn’t exactly excited about the amount of money they’re making. It’s simply not enough for the lifestyle that they want but their current job doesn’t give them the option of being in the high earning category.

These people do the right thing. They start a savings account and rather than spending every dime of their check, they start to save. Over time, that large amount of money begins to stare them in the face and they take the plunge in to the world of investing. These same people heard that others were getting rich by investing in the stock market. They smell the sweet scent of freedom and dive in.

Now that we know the type of person we’re dealing with, let’s get down to it. Let’s talk money. The epidemic is this: the stock market is stealing peoples’ savings at an alarming rate. It’s not because the stock market is rigged, it’s because these well meaning people are uninformed and uneducated.

The stock market isn’t exactly a fast track to riches. Why not do the same thing with medicine? Medical specialists are making a lot of money. You don’t have any formal training as a specialist but why not take the plunge and go for the millions? Start practicing medicine? You’ll need a license to do it formally but you could hand out advice.

Of course that doesn’t make sense. If you agree that taking the plunge and being a for hire specialist doesn’t make sense, why not apply the same logic to the stock market? You don’t have any formal training so why do so many people think they will strike it rich with no training?

Let’s do it. Let’s talk money. More money! It’s possible for the outsider to make money in the stock market, though. It involves being safe. Invest with the idea of making money over time. Do a lot of reading, take a class or two, learn everything there is to know. It will take a lot of time, though. If you look for the companies that have a proven track record of success you will make money. Find stocks that have a dividend. That means that you are guaranteed a payout simply for holding the stock for a longer period of time.

It comes with a price, though. The price is your time. Learning enough to make money is going to take at least an hour per week for every stock that you own. If you want five stocks, that’s at least five hours per week just learning about those stocks.

The people who lose the money are the ones who invest in risky stocks with no training. These are the people that talk about penny stocks, startup companies, and things called levered etfs. These are stocks for the pros. Those with a lot of training and a team of research professionals. Unless you have both of those, stay away.

If that’s not enough, let’s talk money. Smart money! If you don’t believe me, believe the statistics. The stats are clear. Those that chase the fast gains may win today but not over time. You may win the battle but you will lose the war. The statistics prove it.

There’s money to be made as long as you’re in it for the long haul. No getting rich quick! It rarely happens. Let’s talk money. Not today but tomorrow. Read more entries in our let’s talk money series. Check out our No hassle portfolio for stocks that represent a responsible investing approach.

There’s money to be made as long as you’re in it for the long haul. No getting rich quick! It rarely happens.

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Stocks – Investing in the Market is a Winning Proposition

Stocks – Investing in the Market is a Winning Proposition

Looking back over history, it’s safe to say that if you had been a diligent investor in the stock market over the past 25 years and invested in some decent companies it would have fared pretty well.

Everybody of course, would like to find the big blockbusters that go up 300, 400 or even 1000%, over time. You might be one that bought Microsoft or Nike or some other leading companies stock in its early stage and then sold it off after it went up five or ten dollars. If only you could have gone back and just made a simple investment of $ 5,000 and let it ride for 10 years, you’d be set very nice right now.

The fact of the matter is stocks have proven to be a better investment than many real estate deals or any other type of investment.

So what about when the stock market starts crashing in prices are dropping drastically than what you do? Well, the key to this is how you’ve originally set your portfolio up in the first place.

Every portfolio should hold at least five to ten nice dividend paying stocks. A dividend is simply a small percentage paid back to the stock owner. Some dividends are paid on quarterly basis, some semiannually and some annually.

The smart way to do this is to reinvest your dividend payments back into buying more stocks of that company. It’s basically like playing with House money. The company pays you a small percentage usually around two to ten percent. With the average been around four to five percent paid out in average.

Investing in stocks can be a very risky endeavor. Make sure that you have proper research and can afford to lose the money at your investing. The nice thing about stocks is that your loss is limited to the money you invest. However your profit is unlimited. If you by $ 2000 worth of stock – The worst-case scenario are that you could lose $ 2000. However, it’s highly unlikely you’ll lose all of that money. That same investment could earn you tens of thousands of dollars invested into the right stocks.

For more information on investing online try visiting a website that specializes in providing helpful investing tips, advice and resources to include Stocks and more.

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New Advice on Investing For Novices – Anyone Can Get the Hang of It

New Advice on Investing For Novices – Anyone Can Get the Hang of It

Education on investing isn’t a hard task. There are plenty of resources that are available both offline and online that one can make use of to gain some fair amount of knowledge on how to make investments. This is very important to a novice that is starting his stock market career anew. But what matters most for a novice is the advice on how to trade, what to trade and what not to trade. Gaining information on Hot to trade is really easy but it is hard to get a good advice on what to trade and what not to trade.

Top advice 1: “Do not place all the eggs in a single basket”

It is not wise to place all the eggs in a single basket. This is the basic tip in “investing for novices”. The same rule can be applied for the stocks too. It is not good to trade your money to buy stocks from a single entity. Rather invest some in bonds, some in stocks and some in other investment areas.

Top advice 2: “Think before you act”

Do not buy stocks without a thought. One should have a reason for buying a stock. A reason for buying a stock can help you decide your next step in the trading process. Any unwise decision in buying a stock can put you in a total mess.

Top advice 3: “Know the right time”

This is another important tip in ‘Investment for novices”. As an investor, one should know the right time for making the trade. One should know the right time for purchasing a trade and at the same time he should know when he should sell the stock. Right trades at right times can work miracles and generate huge returns to one’s investments.

Top advice 4: “Have a right financial advisor”

Taking the advice from a trustworthy financial advisor can be of great help in times of need. Always seek the advice of an expert financial advisor before you make the trade. As the financial advisors are well versed with the terms of investment market, they tend to offer highly efficient and highly accurate advice that can save you a fortune.

Top advice 5: “Keep yourself informed with the updates”

As an investor, one should frequently be updated with the things happening in and around the investment business. Doing so will trigger necessary strategies to enhance one’s chances of generating higher returns for one’s investments.

Proper education on investing for novices is highly essential as it is this group of people who are likely to fall prey to the wolves in the market. Proper education can help the novices to be aware of what happening around them and design their own strategies to withstand the things that happen in the investment market. All that a dummy needs is not just the information on how to invest money but the tips and tricks that help him to stay away from unwanted pits in the path.

Learn more about investing for novices or follow the links to an archive of closely related articles to inesting for novices.

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Stock Investing in the Right Market

Stock Investing in the Right Market

Stock investing is not really a very popular term in this day and age, and when you consider the possibilities of this, you need to know why more and more investors, seem to be deathly afraid of the stock market. Fortunes were wiped out overnight and large investment firms that commanded billions of dollars in assets were then brought to their knees in a financial crisis that they could not see coming. It is a lot like a meteor in space that is beyond the sight of the many telescopes and massive observatories all over the world.

Do you know the funny thing about space? No matter how much technology we throw at it and how many mechanical eyes we point towards the vast expanse of space, we are now at the capability of looking at no less than 15% of actual space, and when you think about this, this is really a tiny amount. I use this as an example to compare the stock market to and when you consider the whole stock market and the thousands of companies registered on it and the millions of combinations of things that could go wrong that you did not know about, the fact is that most of us in the stock investing game are trading blind and this is really the problem with the whole concept of it all. Enron is a great example, and insider trading has been happening with more frequency over the past few years, as CFO’s and CEO’s have been caught with their pants down and their hands inside the till, moving millions of dollars in profits to their own private bank accounts in Monte Carlo.

So what you need to know is that when you are trying to see what you need to do to make some money for yourself, you should know that if you do choose stock investing, you need to know which markets you are getting yourself into, and when you do this, you can more than be able to make your money online. For one thing, most people do some preliminary research on the market and that is the first mistake that they are making. What they need to do in actual fact is to be able to do some more in depth research on the market and the potential that it has.

See the trading volume and the curve of the graph over the past year or so, and read what forecasters are saying about the activity in the market. You need to know what you are getting into and diving into the deep end of the pool and feeling the water out is not really an option you should be taking when talking about investing your money in the right place. You could end up with a few options, and they can come either with you having an empty trading account, or rich beyond your dreams, being able to do whatever you wanted to. So stock investing comes together only when done in the right market.

John H. Anderson is a specialist in Forex Trading with more than a decade of experience. He owns where he provides his Forex Trading Review!

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