A Personal finance blog to get rich
Investment can be one of the best financial decisions you can make — or one of the worst. While the basic principle of trading stocks is not difficult to understand, you’ll need to spend some time developing your instincts so that you know when to take the critical steps, like selling shares of Apple or buying into a startup.
Today, let’s look at some of the equations you can use to develop accurate instincts, especially when considering your stocks and their value to you.
Hope you haven’t frowned seeing the title. Many 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 an opening day.
In the end, I did resist myself against buying 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.
If you want to learn how to invest in stocks, you need to get ready for a significant amount of study. And you want to put in a lot of hours before you start risking real money. There is no glory is losing a ton of cash as you figure it out on the job. Teach yourself the basics before you start and you will be that much more prepared to keep your money from running out.
Investing can be seen as a dry boring way to exist in the world. Endless Wall Street talk and the droning on of adults about their portfolios can seem impossibly dull to the average young adult. But learning about it is a way to increase your engagement with the world and your facility for making money. And it can be pretty exciting if you find a way to manage the risk effectively.
As a beginner investor in the stock market, it is critical that you understand the fundamentals. There are millions of investors out there and even more competing theories and strategies about how to make money in the stock market.
However, if I was ever lucky enough to go back in time and be a true beginner again in the stock market, here are the 7 stock market investing tips I would give to myself that I have learned over the last decade.
The two traditional forms of investing when saving for the long term are stocks and real estate. Both have proven to be successful over the past decades and offer a path to financial security, but which is better? Real estate or stocks?
The truth is that there is no one right answer for everyone. Each of these investments has their own advantages and disadvantages in building up a portfolio of assets and the deciding factor often comes down to personal preferences.
I personally trade stocks very rarely and try not to advise my readers to trade. But those who can afford to trade, that is taking on more risk, can do well by reading about the trading first before venturing into the field. it’s always better to do your homework before you start stock trading
There are a lot of stock trading books out there which could already equip you with all the things you need to know about the stock market and the career in itself. In this article, we highlighted the top six books on stock trading that every successful trader has already read – and you should, too!
A lot of investors find themselves encountering severe emotional shifts with the fluctuations that come with stock market investment. In addition, uncertainty may seriously surprise and hit you when suddenly prices drop while elation sets hearts racing with sprightliness when prices rise.
However, people who prefer to invest in long-term dividends stocks, won’t experience the same anxiety as stock prices fluctuate. I can perhaps count myself to be in this category. I haven’t sold any position in last month or so, since dow lost 1000 points in a day. In fact, I bought CocaCola and Johnson and Johnson stocks. They both have consistent dividend paying record over many years.
From the mindset of dividend investors, they are aware that the success of their financial investment is not hinged on the inconsistencies of the market itself, but rather on the long-range prosperity of the company. It’s a historical fact that the dividend, as well as the stock price, will sooner or later ascend, in the long run, resulting in considerable growth over a long period of time.
Every time we see a plunge in the stock market, we feel the need to buy stocks. At least I do. The recent pull back encouraged me to buy a few stocks. As long as you buy stocks for investment, i.e. you hold on to it, it’s fine. In fact , to me, every slump is an opportunity for investment in stock market. But, when you try to trade in stocks then there are some precautions you must take.
Before reading rest of the article, do keep in mind that trading is a risky venture. I strongly discourage people who are in debt from in form of trading. As a rule of thumb, if you can’t generate enough saving to pay off your dues, you should’t spend any money in trading. In fact, at time, trading becomes as risky as gambling. especially when you day trade based on speculation alone.
It is very difficult to make money from the stock market. There is nothing more difficult for an investor than to see mediocre returns on his portfolio. I should know because I speak from personal experience. When I was assembling a portfolio of stocks to save for my retirement I was never happy with the returns that I got.
That was until I learned about an investment strategy that is more than sixty years old but remains very relevant today. This approach is known as value investing and was developed by the late Benjamin Graham, who is known on Wall Street as the “Father of Value Investing” and was the mentor of the venerable Warren Buffett.
Investing in stocks is as delicate as walking on a tightrope—one small mistake and things could end badly. But what makes this rope walking worth the risk are the attractive, sometimes astounding, rewards you get if done properly. Apart from the obvious monetary gain, you’ll also feel a sense of power and satisfaction by being able to accurately predict stock values and make the most of them.
While investing in stocks often involves complex methodology, there are also easy routes – investment hacks, you might say. The 10 tips discussed below can help you kick-start your investment career and turn you into a successful speculator.
