Stock Trading Tips For Beginning Investors
These stock trading tips help keep it simple, especially if you have little money to start with.
Stocks can offer the best returns on your money if
you invest wisely and use common sense. The market is always fluxuating but if you invest for a for a moderate amount of time the financial rewards can be great.
First off you need to decided what kind of investor
you and and what kind of investment plan is best for you. You should take in to account how much money you have to invest, how much you can afford to lose, the length of time you plan to invest and which stocks are right for you.
There are three types of investors. Conservative
investors cannot afford to lose more than six percent of their yearly income. Moderate investors can lose up to 15 percent and high risk investors can lose 15-25 percent of their income.
There are two types of stocks. Growth stocks tend to
earn money quickly but can lose it faster than income stocks which yeild steady returns. Bonds are another option that offer a stable means of investment. They usually offer a seven percent return rate. Mutual funds offer another alternative to investment. People pool their resources into a fund organized by brokers. The return rate varies on how much you invest and how long you leave the money in the fund. The rate of return varies between 8-10 percent. The final option is personal stocks. These stocks are incredibly
profitable on their way up but keep in mind they could go down just as quickly. You have the option of setting a call price( a set price at which you buy the stock) and a put price ( a price to unload the stock) to minimize some of the risk.