Sitting back and watching your money grow only sounds like a dream

in Here is your first Forum Tue Jul 16, 2013 2:18 pm
by chainsaw • 299 Posts

Sitting back and watching your money grow only sounds like a dream, but the truth is, it doesn`t have to be just a dream to you any longer. This article is going to inform you about the stock market and how you can become successful with it, so that you can put your money somewhere and watch it grow with confidence.<p></p>

<p>When picking stocks, find a strategy you enjoy and stick with it <a href="http://www.ivyganerator.de/jerseys/2013/...obs-anuj-kumar/">ivyganerator</a>. For instance, you may choose to ignore the market`s behavior for the most part and focus only on a company`s earnings potential. Once you settle on a personal set of rules, you can seek out prominent investors or financial gurus who share your philosophy, and you can learn from them.</p>

<p>Aim for investing in stocks from companies that are financially sound and have earning growth that are above the market average. There are over 6,000 publicly traded companies in the United States stock markets, available to choose from <a href="http://www.nbyukon.com/Accessories-Series-_c10">cheap Accessories Series</a>. However, applying these criteria reduces your target pool of stocks to just around 200 choices to invest in.</p>

<p>When trading stocks, think of them as your own companies instead of just meaningless symbols. Take time to review financial documents and analyze the company`s performance. You will need time to decide whether or not to invest in certain stocks.</p>

<p>Look for stock investments that can return higher profits than 10%, as this is what the market has averaged over the last 20 years, and index funds can give you this return. To get an idea of what the return on an individual stock might be, find the dividend yield, as well as the stock`s projected earnings rate of growth and then add them together <a href="http://www.chinese-printing.com/chinese_...contact_us.html">offset printing</a>. A stock that yields 2% and has 12% earnings growth might give you a 14% return overall.</p>

<p>Use a discount brokerage rather than a full service firm for your trading of stocks, bonds and mutual funds, and keep more of your money. Discount brokerages usually charge lower fees and commissions. There is no point in paying unnecessary fees. The only downside is that a discount brokerage will not give you advice about what to buy and sell. You must make those determinations on your own <a href="http://www.tophanddryer.com">jet hand dryer</a>.</p>

<p>You should never invest all your money into one business. It does not matter how much you love a particular industry. In order to build up an excellent investment portfolio, you have to diversify. Diversification is the proven method of greatly increasing your chances of profiting from your stock purchases.</p>

<p>Do not set price targets for your stocks. Instead, you should set a stop-loss limit. It is always wise to plan for the worst, while hoping for the best. Because of this, whenever you purchase a new stock, set a stop-loss value at about 15 percent below your purchase price. This is the point at which you should cut your losses and sell your stock, before it becomes completely worthless.</p>

<p>Rebalance your portfolio quarterly. If you started with an 80/20 mix of stocks and bonds, the stocks will likely outpace the bonds, leaving you 90/10. Rebalance to 80/20 so that you can reinvest your stock earnings into bonds. This way you keep more of your earnings over the long run. Also rebalance among stock sectors, so that growing sectors can fuel buying opportunities in bear cycle industries.</p>

<p>You should now feel confident when you think about the stock market and investing. Your hard earned money will be earned through knowledge, wit, and skills, in predicting which stocks are going to be worth more in the future. Apply the knowledge you read in this article and you should have no problem at all, finding success <a href="http://mensjewlery.ucoz.com/blog/it_96_s.../2013-07-15-127">ucoz</a>.</p>

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