 Stock Market Investment Tips For The BeginnerPublished Date: 2005-08-19 01:50:51 WorkOnInternet.com
>From the beginning, most investors are merely looking for ways to invest a little money and make a little profit. Before your portfolio can really take off, you must research to find stocks that work with your goals. Some investors strive for either a short-term or a long-term investment. With a long-term investment, the investor holds onto the stock five years or more to overcome the volatile market. This is the route most first time investors take. Most investors begin with less than $500 and purchase these stocks through an online broker. In some situations, brokers allow investors to pay in smaller monthly sums like $25 to $50 a month, automatically withdrawn from a checking account. However, if short-term is more to your liking, then investment companies can help you find a less risky stock package with low to medium volatile stocks. Most short-term stocks fall under the mutual fund category and involve an investment period of around 1 year. Many short-term investors are transferring from long-term investments and intend to use this money for some specific plan such as a child's higher education tuition. The stock market never perfectly operates as you might expect. While many investors have great plans of holding stocks for exactly ten years, the market doesn't always function according to plans. Following general rules about the stock market does help in an investor know when to make a move; however, expecting the market to be exactly on your schedule sometimes leads to unnecessary panic or wrong bets. Some general rules that help you decide when to hold or sell involve simple math. For instance, the price-earning ratio (when the price which you paid for the stock is less than the current market price) is one way to tell if you should sell for a profit. Sometimes an investor just has to ride with the tide. Deciding when to sell or buy a stock isn't as easy as it sounds; hence, many new investors decide to purchase and sell their stocks through online brokers such as Ameritrade.com and E*Trade. Joining an investment club is another way to feel better about your trades and a place to discuss stock performances. If you plan to trade a large sum of money, you should consult a big investment firm like Charles Schwab to handle your investments in a highly attentive way. Lots of information about starting in the stock investment world are available online at places like Yahoo!Finance or WallStreet.com. Copyright 2005 Miriam Amiro. All rights reserved. ----------------------------------------------------------- Miriam Amiro is the author for FCL Investment Inc whichis the #1 resource for investment information on the Internet. Please visit her complete archive of articles at: http://www.fclinvestment.com/
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