Stock Market Basics

Useful Stock Tips

Stock tips are a dime-a-dozen, the problem is where can you get some that will actually work out for you and your portfolio. No matter where you go on the internet, TV or the radio, you’ll see or hear about someone else who has the right investment tips for you. Unfortunately there’s more misinformation out there than there is solid reliable leads. Here are just a few stock tips for you that will help your future.

Never take the word of someone else as an investment tip. If someone is giving you the “inside scoop” on a particular stock, you need to make sure for yourself. There are laws against inside trading, so for an average trader or investor to have any good information, it’s highly unlikely.

Never buy all of your shares at once, you should buy into any position incrementally. Stocks rise and fall all the time so to lower your cost basis. Most likely you’ll never be able to buy at the bottom so you need to be prepared to buy more when the price falls. Typically I wait for an 8% pull back from the stock’s recent high or 5%-8% drop from my cost basis before buying any more shares.

If you’re still looking for good solid reliable information, but not sure where to go. I use Yahoo Finance as well as The Street.com. Jim Cramer has been a never-ending resource of good stock leads for me. Not only is he entertaining, but very well aware of the stock market. I listen to his “suggestions” on what stocks or sectors are looking good, but I still don’t buy into the company because he thinks it’s good. I do my own research into the company to see what he sees or doesn’t see.

Diversifying your portfolio is very important if you want to protect your you profits or minimize your losses. If you go ahead and invest of your money into one company or sector, you could lose a big portion of you portfolio in the process. As I said before, all stocks rise and fall and that also goes for complete sector at times. That is why you need to invest across the board (equities, bonds, precious metal and other commodities). Divide your investments into several different vehicles, typically no more than 20% into any one sector or stock.

Look for companies that offer dividends, larger companies are the ones to look towards. Dividends are a return of the company’s profits that are distributed among the share holders. Let’s say the company’s stock is $20 per share and they have a 10% annual dividend. Each year you would receive $2 per share (paid quarterly) for just own the stock no matter what the stock price is. So even if the company loses 5% value on the stock price, you’ve still made 5% on your investment.

In later posts, I will offer other stock tips that will also help increase you gains.

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Need Some Stock Trading Information?

Doesn’t everyone need a little stock trading information? I know even after being involved in the stock market for so many years, I’m still looking on a regular basis for new information on how to increase my portfolio. No matter what it may be, stock tips, a new IPO, or just some other ways to diversify my portfolio during these unstable times. I’m going to share a few pointers for you to help you with your portfolio.

Where to go to get good information? Well that could be anywhere. I’ve learned to take information from all sources to assist me and my trades. The one thing to keep in mind is to make sure you follow up on the information to assure that it’s correct and valid. There are more mistakes made in the stock market than there are not. Traders and Investors make mistakes everyday and that’s just the way it is. To help limit your mistakes, you need to do your own research and due diligence before you invest.

Getting stock tips are not the only information you should be looking at when it comes to buying and selling stocks or investing your hard earned money. What about the condition of the economy? Is it stable? See what’s going on in Washington. If the U.S. Treasury is printing out money like it’s going out of style, then realize that the dollar isn’t worth what it was before the increase of currency. Unemployment plays a major role in the condition of the markets and when you see the unemployment rate climbing, then it’s going to push the overall markets down.

What about the new tax laws (or the end of old tax breaks) that will effect your gains? In 2011, the Bush tax credits will come to an end and traders as well as investors are going to pay more in capitol gains taxes. The will be increases across the board when it comes to investment taxes. There will also be increases on dividends.

Have you given any thought about investing in precious metals? Gold, silver and platinum are a good way to hedge against the falling dollar. No matter what happens to our currency (or any other), gold will always be the investment of choice when the economy is getting worse. Gold has been a great investment during those times of trouble.

Just remember that looking for stock market information, you need to look further than just a bunch of stock tips.

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Stock Investment Software

Playing the stock market is a game of risk. On the one hand, you could make a boatload of extra cash by simply investing in a great company. On the other, if that company falters or experiences some bad sales, you could lose what initially seemed like a sturdy investment. Stock market trading occurs every day with people wanting to get rid of shares and others believing that someone’s loss is their gain. A great way to know what you’re doing and make sure you understand the investments you are making is to invest in stock market trading software. Many different brands are available for sale that are easy to install and will help you on your way to a great financial future.

A great and popular stock investment software on the market right now is the StockPicker RT. Recommended by most financial analysts, it scans the current market status on a daily basis and points out companies that seem to be worth investing in. It bases its data on the type of trading that appeals to you the most. The product has been praised for its ability to help you both earn and save money, and keep you away from potentially bad investments. It was awarded the Best-Selling Stock Picking Software award by Investing Network Inc. in 2006.

Another great piece of software is the Stock Signal Pro, which is available from most retails for an affordable price. It is specifically designed to stop you from buying too early or buying too late, maximizing your overall investment in the long run. It gives you alerts for when it believes you should buy and sell, and tracks all your favorite stocks on a daily basis. It lets you know which stocks are on the way up and which seem to be faltering, and also gives you calculations of how much money you can make or lose depending on the stocks you choose.

Playing the stock market is a risky business, but it can ultimately be incredibly rewarding in the long run. Buying stock in a company shows your support and dedication towards them and your confidence in their stable financial future. You could make serious money by playing your cards correctly and making the right decisions when choosing your stocks. These stock market trading software programs can help put you on the right track. The two products listed here are just a select few of the many different programs that are available to you at affordable low prices. Do some research and decide which program is the best one to suit your interests. Good luck!

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