Six stock market tips to save yourself a headache

2018/4/14 23:18:10

Learning about the stock market is like diving into a business world salad. Here are six hacks useful for the budding investor

 

 


By  Robert Cordray by Born2Invest, Apr 14, 2018

 

The stock market is well-known as a venture that makes money, but few really understand the true essence of it, which is finding and investing in value. What sounds as noble and good intentions of making some money soon turns out to be a day-to-day gamble at the mercy of the stock market. To help save you from the headaches of holding losing positions and seeing your account balance gradually drop, here are six tips that will make you a more effective investor in the stock market:

 

Start with enough capital

 

With minimum account deposits starting as low as $50, it’s tempting to open an investment account and start growing your petty cash into next month’s rent. But an underfunded account can indirectly increase risk, with the investor buying and selling more frequently to try and catch the daily ups and downs of the stock market. This could work for the first few trades opened, but over time it only serves to increase your risk of losing money. Not only do you stand to lose from your positions depreciating in value, but you also have to pay your broker a commission fee each time you open and close a position. Start with at least $1,000. If you don’t have the money yet, save up for now.

 

Pick a good broker

 

It might not make that much of a difference, but a good broker can complete orders faster, offer more competitive fees on round-trip trades, and overall make investing easier for you. Pick a broker who is also financially stable to avoid any account turnover or refund issues that result when the company goes under. If they do, your money could end up being lost in a sea of paperwork and legal proceedings. Good brokers should also be reachable whenever you need them. Make sure your broker can be contacted either via phone, email, or better yet a website support chat window.

 

Pick a strategy

 

There is no need to reinvent the wheel. Dozens of strategies exist and whatever you think is a unique approach may have already been done in several variations by other traders and investors in the past. Strategies including value investing and credit spread trading are few of the examples that you can adapt and use. Of course, strategies are more of a set of guidelines rather than rules. You can adjust parameters of the strategy to better fit your investing style and personal circumstances.

 

For the complete list of suggestions, link below:

https://born2invest.com/articles/6-stock-market-tips-save-headache/

 

 

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