Stock Investing Tip Of The Day
Anyone and everyone who is considered a trader or an investor can always use a stock investing tip. The question is, where can you find some good tips? Investment tips can range from many different things, but to know which ones are right for you and your goals in life. So here’s a few tips for you to consider.
First thing you have to ask yourself is, how old are you? Depending on your age will determine what kind of risk you should take. Starting young in your financial future is the best thing you can do to secure your later years. If you’re in your twenties then you can take a little more risk than a person in their forties. If you experience a setback in your portfolio, you’re have time to make it up.
What about if you’re going to retire in just a few short years? You need to start moving your retirement account into “safer” investment. When you reach the time where you are soon to be retired, you should have built a decent looking portfolio, so you’ll want to secure what you have than risk a good chunk of it if something goes wrong.
Where can you go to find reliable stock tips? In my opinion, you should only trust yourself and the research you do on each of the stocks you are going to invest in. I find many of my leads by just following the daily blogs and media sites. I’ve found some great leads on twitter and Facebook as well, but just because someone gives me a “good stock tip” doesn’t mean I just jump into the stock. I follow up on each of these leads myself by looking into the company’s financial reports and balance sheets as well as listening to their conference calls and earnings report. More times than not, you’ll receive some bad tip and lose a bunch of money in the process.
Learn how to read the technical charts as well. Many traders and investors learn to do technical analysis. Technical analysis is looking at a stocks performance by studying the charts. history repeats itself and that holds true in the stock market as well. It’s too much for me to get into here in this post, but I will in a later one.
Never buy all your shares at once. when you decide to build a position in a company, you need to do it incrementally. This way when the stock price drops, you can buy more on the temporary weakness of it. This will help reduce your cost basis and increase profits.
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What Stocks To Buy
Everyone is looking for what stocks to buy in today’s market. That is why it important to do your research on a regular basis to keep up with what’s going on. The stock market is changing everyday and to make sure that your portfolio is growing, you need to stay informed. In today’s economic environment it’s hard to make sense of most of what goes on on Wall Street. No matter what report is released for the day (retail sales, unemployment, existing home sales, GDP, etc.), it seems to not effect the markets the next day.
Just recently during earnings report season, Bad economic data was coming out through the week, but the earnings reports were beating the street’s expectation. The DOW’s closings for the week were so erratic which swung over 400 points. Bad news came out on Tuesday, but the DOW finished up 250+ for the day only to come down 300+ on Wednesday.
So when it comes to knowing what stocks to buy, you need to do your research and your due diligence. If not, you’re not going to be able to make profits in your portfolio. It’s been said many times that for each stock that you invest in, you must do at least one hour per week on researching the company as well as the sector it’s involved with. What may be a good solid company when you first bought the shares may not be a few weeks or months later. Stay informed and you won’t get taken by surprise.
I never buy all my shares at once. I buy incrementally to help lower my cost basis (average price per share). I know before I buy any shares of a company how much money I’m willing to invest in total. If I’m going to invest $20,000 in a company, my first purchase will be for $5000 in shares. So if the price per share is $50, I buy 100 shares. If the stock drops 5%-10%, I’ll purchase another 100 shares. But if it drops more than that for no apparent reason other than it was dragged down by the entire market, I’ll buy 200 shares instead because I know that the company is still solid and doing the right thing that when Wall Street realizes that the stock was oversold, the price will be right back up to $50 or better.
A lot that goes on with making money on Wall Street has to do with timing. you need to be in the right place at the right time. To make sure of that, you need to do your research to know what stocks to buy.
Tags: average price per share, cost basis, dow, due diligence, earnings report, earnings reports, gdp, Stock Investing Basics, stock market, Stock Market 101, Stock Market Basics, stocks, Stocks To Buy, stocks to buy, wall streetRelated posts
Stock Market Guide
Even after years of trading stocks and investing in the stock market, I could still use a little help in improving on growing my portfolios. In today’s economy I have no idea where the stock market is going. How can the DOW be at 10,000? With so many people out of work along with the government spending as much as they have in bailouts and taxes about to go up across the entire board next year, how can anyone have confidence in the stock market. Everyone is looking for a reliable stock market guide to help them understand what’s going on. It can’t be because of Washington’s new regulations on Wall Street. We’ve learn from the past that when the government enacts new regulations on anything, it causes less growth for the private sector.
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When I started trading stocks I knew who I was investing in, typically a once private company that grew to trade publicly on one of the exchanges. I would do my research on each company I wanted to invest in. After reading their financial reports and their balance sheets, I would decide if the company can and would make a profit as it grew even bigger. At that time I would build a position in the company stock in hopes of making a profit for myself.
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So with the way things are today, we can all use some help. My advice to you is not to just stick with a narrow range of places to get the information. There are so many legitimate websites that you have to your advantage that investor of twenty years ago didn’t have. One of the sites that I use is Yahoo finance. Since they are no small presence on the internet, I can find up-to-the-minute information and news releases on companies that I’m invested in or ones that I’m still researching.
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Many seasoned investors and traders know about TheStreet.com, a website site that Jim Cramer help start a few years ago. Jim Cramer has been active in the stock market for many decades and knows what he’s talking about. He also predicted the bottom of the stock market (6500-6700) just weeks before the stock market started plunging. Click the above links, or the banner below to start your free trial of Action Alert and start taking charge of your investments.