/Lydia Wanjiru/ -- How do you identify the best and the most suitable stocks to buy? Majority of investors buy stocks based on a few things that they can understand such as the price of the stock. A group of other investors tend to invest based on a given emotional attachment to the company like them or their close relative is a client or an employee of that company. However, there are more variables that you should take into account before committing your money in a particular stock.
/Lydia Wanjiru/ -- Stock investments are a lucrative opportunity that anyone can venture into even with little money. Investors looking for cheap stocks to buy today can consider buying these 5 stocks: 1. Buy a mutual fund A mutual fund is an investment platform that is funded by the shareholders that trades in diversified holdings usually run by an asset management company. A mutual fund pools money from various investors to purchase securities such as stocks, bonds and more. Shares of a mutual fund are bought and sold by a fund family like the Fidelity, Vanguard or Charles Schwab. Buy a mutual fund with the lowest possible fees.
/Lydia Wanjiru/ -- A mutual fund pools money from a variety of investors to create a portfolio of stocks, bonds, real estate, money market instruments or other securities. Some mutual funds concentrate on a single asset class such as stocks or bonds while others invest in a variety. Mutual funds are bought directly from the fund companies such as Vanguard, T. Rowe Price or Fidelity and more, unlike stock market where shares can be bought from one investor to another. A professional manager for the fund invests the money in different types of assets including stocks, bonds, commodities and other assets. Investors earn from the mutual funds through dividends on stocks and interest on bonds. You can invest in mutual funds with as low as $100 but the majority of mutual funds require a minimum initial investment of between $500 to $3000 and the institutional class funds and hedge funds require at least $1million or more. Mutual funds trade once per day, unlike ETFs.
/Lydia Wanjiru/ -- One sure way to build wealth is through stock investments. A stock is a share or a portion of a corporation’s ownership. Choosing the right stocks to invest in is a key factor to ensure that you get a solid return on your investments. Investing in shares requires a basic understanding of how stock investments work so that you can make an informed decision when you invest. You need to know how the stock investment will help you make money.
/Lydia Wanjiru/ -- Diversification is a risk management strategy and a key parameter to consider before you invest in stocks. It is a technique that plays a major role in mitigating risks by allocating investments among various securities in industries, geographical regions and more. Diversification mitigates unsystematic risk events in a portfolio. It is basically compared to “not putting all your eggs in one basket” and aims to maximize returns by investing in different stocks that would react differently to the same event. US stocks are exposed to market and economic forces in the U.S and they will react differently when exposed to the same events. To build a diversified portfolio, you need to know the various types of diversification available.
Oct. 19, 2017 /Lydia Wanjiru/ -- Investing in stocks is one of the best ways to build and grow wealth. Although all investments carry some degree of risk, investing in stocks can result in great gains if done appropriately.
Sept. 28, 2017 /Lydia Wanjiru/ -- According to a recent survey by bankrate.com, only 26% of Americans below 30 years are investing in stocks. Lack of financial knowledge was a topmost reason why most millennia’s are not investing in stocks besides lack of finances. Lack of information was another reason cutting across all age groups.
There are a numerous number of stock trading articles available on the internet. Will you rely on any articles online? Probably you will not do that because you have a brain. When it’s about trading it’s obvious that you will have to face both profits and losses. The ‘risk tolerance’ is the crucial part in trading in the competitive world. You should be able to increase your average profit per trade, so here is the best way to do it. The best way to increase your average profit is by calculation. We consider that the calculation would increase the average profit of your stock trading if you do it properly. Moreover, you should understand the ways to manage your money while trading but how can you do it? Let us help you with few unique concepts.
A plan is a must for any kinds of activity, if you do not have a plan there is a high chance for you to screw the work. A better plan will always take you higher. Even if you are not a plan-type person if you want to trade then having a plan is a must. To be more specific having the plan is as if being on the safe side. Are you planning to analyze the market for 24 hours a day? Are you planning to sit in front of the PC, or laptop from the time you work up? Obviously, it will be insane if you are planning to do such thing. Looking at the PC or laptop to spot a trade is not the right way to do it; in fact, it will drag you down to an inappropriate trade. You must use your brain to have a plan before you trade.
Trading the stock market is very much popular in today’s world. There are many professional stock traders who are trading different stocks and making millions of dollar in the financial industry. But if you think that trading the stock market is a pretty easy job and consider it as a get rich quick scheme than bad days are waiting for you. Trading the financial market successfully requires an extreme level of patience and dedication. If you truly want to become a professional stock trader in the financial world, then you need to adapt the traits of the professional stock traders. In this article, we will be sharing the top traits of the professional stock traders in the market.