Many people ponder the same question when it comes to investing in individual stocks. How much capital (cash) should I allocate to a particular stock or exchange traded funds (ETFs)? This guest post might be able to answer some of your questions about risk management of stock investment.
Now your local financial advisor might show you dozens of pie charts featuring “model portfolios” and throw in a little personal opinion, which very well may satisfy you. For now.
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At this point of time, in mid thirties and, having a stable job, I do not look for income from my shares. I rather re-invest the dividend I receive each quarter. I own almost 20 different stocks right now and more than 80% of those stocks are dividend paying. 
If you are aiming for higher return from your investment, stock and dividend investing is probably in your list already. But stock investment inherit greater risk compared to other form of investment. You should have some clear strategy and game plan to secure higher return with lower risk. These are some of the best practices that I tend to learn and adapt over last few years.
Let’s see them, very briefly.
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Investing is one of the most celebrated theme here at One Cent at a Time. Where we discuss everything about investing, including where to invest my money, real estate investment, Gold and silver investment, etc.
Its time now to talk about a new investment choice called Motif. Motif is perhaps named after “Motives”, the reason behind doing things. A Motif is an investment vehicle where you accumulate stocks as per a particular motive or idea, the set is called a “Motif”.
Hope you haven’t frowned seeing the title. There are many who invest in stocks out of compulsion or impulses. This article is for those. I generally tend to write about people who are like me, middle class, having some money to enjoy life but, mostly trying hard to maximize money’s worth.
People like us, do not usually have money for buying stocks on impulse. Still, it almost happened to me last week. I was on the verge of buying into Facebook on the opening day.
In the end, I did resist myself against buying the Facebook stock. Not that Facebook is a bad investment but, the whole affair was nothing else than impulse buying. I didn’t study the valuation, I wasn’t reading analyst reports. I was just buying it, for the sake of it. Giving in to the hype and hoopla.
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Tired of traditional trading on the stock or commodity market? Welcome to the world of spread betting. While having the same risk as with the stocks, it’s tax free, and offers the opportunity to take profit whether the market is in green or red.
It covers a wide range of alternatives to bet on; Indices, individual shares, commodities and currency rates.
So, what is the Bet? Unlike traditional share trading, you never own the actual share or commodity. You only make a call on whether you think it will go up or down in value. You stake a certain amount of money per point movement; the more it moves in your favour the more money you make, the more it moves against your prediction, the more you lose.
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