7 Tips in Stock Investing (Part 2)

September 15, 2009 by  
Filed under Financial Tips, Investment, Stock Trading

OK, lets continue our discussion from part 1. Now, we are going to talk more about 4th tips:

Tip No. 4 – Do you have sufficient knowledge about Stock Investing?.
Before “you start”, ie to invest you must go through several operations that are needed.

They called first priority and training and information, choice of investment capital and an investment broker and finally “in real” on the market.

You have to train you. Investing in Exchange can not be improvised. The Exchange is not a casino or a game like the Lotto! There are specific rules you must know. You need all the chances on your side. You learn to master the tools that you know little or more or less well as graphical analysis or certain special investment products such as warrants, for example. You must also imperative to know and control the market orders.

You must then inform you. Information is somehow the “sinews of war” of the Exchange. It is important to know what are the operations that prepare (IPOs, share buyback by the company issuing them, etc..). Do not neglect to inform you. For this, Internet is a source of information especially that you are irreplaceable difffusées practically in real time (in most cases with 15 minute delay) or even outright in real time through your broker one-line.

Tip No. 5 – choose to invest capital and intermediate.
You must also choose a lump sum to invest. In this case, obviously, nobody can choose for you. It may well be that you have only 1,500 euros in savings to spend on the stock exchange or over 150,000 euros. In one case as in the other, remember that this amount should represent for you the money you do not need. You must also choose a broker, or if you prefer a stockbroker.

A broker is an intermediary that manages your stock portfolio. Through him you must go to buy and sell shares, you receive dividends, etc.. A private individual has in fact not allowed to work directly on the Exchange. Whether a bank (which is not recommended because of its lack of responsiveness and its high cost), a brokerage firm or broker on line (most recommended because of its quick response to your orders and its price has dropped dramatically), your broker provides the services you need to go around: training services and advice, fee, various tools (eg trading room on the Net, technical analysis in real time pricer warrants, alerts, etc..) possibility of his orders on the Internet, by phone, fax, etc..

Tip No. 6 – “go for it” and invest in the stock market.
You finally, after all this determined, you “take the plunge, so to speak. A concern must always guide you, the preservation of your capital. In other words, you must always keep in mind the idea of placing what is called the “stops”, that is to say, values which, when they are affected by the medium in which you invested, you must exit the market, especially downward. In other words, he must, before even investing a penny, you determine the maximum loss that you authorize. Understand the importance of these stops and the art of asking. Often, 5% of the purchase price appears to be a good limit