Dodge money losses in the stock market with our tips! Before making your first investment, take the time to learn the basics about the stock market and the individual securities composing the market. There is an old adage: It is not a stock market, but a market of stocks. Unless you are purchasing an exchange traded fund (ETF), your focus will be upon individual securities, rather than the market as a whole. There are few times when every stock moves in the same direction; even when the averages fall by 100 points or more, the securities of some companies will go higher in price. The areas with which you should be familiar before making your first purchase include: Financial Metrics and Definitions. Understand the definitions of metrics such as the P/E ratio, earnings per share (EPS), return on equity (ROE), and compound annual growth rate (CAGR). Knowing how they are calculated and having the ability to compare different companies using these metrics and others is critical.
Buy in thirds: Like dollar-cost averaging, “buying in thirds” helps you avoid the morale-crushing experience of bumpy results right out of the gate. Divide the amount you want to invest by three and then, as the name implies, pick three separate points to buy shares. These can be at regular intervals (e.g., monthly or quarterly) or based on performance or company events. For example, you might buy shares before a product is released and put the next third of your money into play if it’s a hit — or divert the remaining money elsewhere if it’s not. Buy “the basket”: Can’t decide which of the companies in a particular industry will be the long-term winner? Buy ’em all! Buying a basket of stocks takes the pressure off picking “the one.” Having a stake in all the players that pass muster in your analysis means you won’t miss out if one takes off, and you can use gains from that winner to offset any losses. This strategy will also help you identify which company is “the one” so you can double down on your position if desired.
Borsen Newsletter – Paid instead of free? Stock exchange newsletters meet us almost every day while surfing the internet or online. They give us short, concise and compact information about a wide range of issues in almost all areas of life. Often they contain advertisements for certain products, sometimes they are also inadvertently added, if one has accidentally overstated the odd cross after the completion of an online purchase in an online shop. Mostly you will not get rid of these newsletters until you read exactly between the lines at the end of the newsletter. Most newsletters have one thing in common: they are usually free. Read extra details on Stock exchange newsletter.
Diversify your portfolio with a healthy balance of low-risk, moderate-risk, and maybe some high-risk investments. Play it safe with the majority of your investments in tried-and-true stock options that always return a profit and continue to invest in them. Now the profit margin may not be massive by any means with these, but it’s a safe bet that long-term investment will yield a healthy ROI. You should also invest in some moderate-risk options that show some promise of yielding a greater ROI percentage than the safer and more stable stock options. It is important to be careful; do some research on these investments and try to get a sense of whether it’s worth investing in or not. This is especially true for the high-risk investments.