Online Stock Trading Tips

Selecting the correct stocks are important. It is because no matter how big your capital or how clever you are in managing risk and money management, a poor stocks is poor. You cannot do anything to increase its value, it is because it’s beyond your control (its the control of the company owners by the way, except if you are a giant shareholder and you can do something to revive but this is rare for most stock investors)

Therefore as an investor, you need to know a few sets of important things in choosing how to buy good stocks. If you are planning to have a well diversified portfolio(recommended), you can have different mixtures of “good” stocks in different sectors.

Assuming you still have to buy a single stock and you are planning to create portfolio, the following are the detailed steps:

Step1. Write down the sectors for which are very important in your day to day living (like you cannot continue to live without them) and you know them very carefully because you are a long term customer/user of that sector. (more…)

Normal stocks rate of return annually is around 10%, the worst that happen in the stock market over the last 65 years is around 8.5%. And the worst rate of return for a stock portfolio is around 6%.

Question: Can I invest in stocks so it can finance me by the time I retire old?

There is no quick Yes and No answer to this question and it needs to be analyzed based on a realistic data.

Supposing, you are planning to start a stocks portfolio at age of 30. This stocks portfolio is highly diversified which is a good strategy (so you have energy, IT, food, and health stocks) to make it more stable.

Now, supposing you use direct stock purchase plan list as your investment method because you are doing this for a long term (retirement plan).

And then on the financial side, supposing you are planning to save $100 per month and invest it in stocks. Then your initial investment in direct stock purchase plan is $5000 (example only). (more…)