Your neighbor enjoys watching financial news, and sometimes he buys or sells a number of shares of ordinary public company shares. How does he do it?
He knows why he does this before planning how to do it. It seeks to invest in a growing company before too many other investors sort it out and raise the price of common stock. But he also likes to win at what he does, and this aspect of investing can go from plus to minus. “How” starts with getting relevant, relevant and effective investment information. Such information is provided by various free television and Internet resources.
Your neighbor records the morning and afternoon investment TV shows “CNBC.” After he comes home from work, spends time with family and enjoys dinner with family, he spends thirty minutes – an hour watching CNBC daytime shows to learn investment news about the financial markets that day. It is possible that he will collect information about a certain company, whose shares have increased or decreased according to the news. He searches the internet for the name of the company to find out its symbol.
He gains access to the “Big Charts” to learn about the company and its performance to date, as well as over a period of time, paying close attention to the size of the company and whether it pays quarterly dividends. By searching for shares, paired with the words “dividend payout schedule,” he may learn that the company will pay the next dividend to shareholders who own the shares soon.
Your neighbor is not a gambler. He invests money. Rarely will he invest in news stocks. Instead, according to research, he may decide to add this stock to his watch list to do a deeper analysis of what caused the stock to move up or down in the past. Over time, he has compiled a list of about 30 stocks, some in all ten sectors of the S&P 500. From the CNBC show, he learns which sectors are evolving today.
He trades stocks with a well-known online broker who charges $ 6.50 for a trading commission. He trades only using the limited amount of money he has set aside for this purpose. He prefers to buy no more than 100 shares of any stock, and at times increases the purchase about a month before the ex-dividend date of the company, when the volume has risen in the auction of this stock, and he sees that the price has begun to rise. He sets the purchase price as a “limit” order (since he doesn’t want to buy when the price is rapidly rising above his target price), and he supports that order by choosing “good to cancel”.
When breaking news changes settings, it cancels the purchase order. Selling is a big problem. After the purchase, should the shares rise rapidly, tempted to sell them for a quick profit, but suppose the company’s business began to rise to a new core level (the shares to keep and pass on to grandchildren)? He pays more attention to the news on the stock before deciding what to do with their sale. When stocks fall on unexpected bad news, he usually sells without hesitation, as this can limit losses, and he can account for losses compared to earnings in other stocks for the tax year.
No. a qualified, licensed investment professional, also your neighbor it’s not you. Do research, limit risks and be careful about the investments that may go your way. Your neighbor never invests money in something he doesn’t understand, and never listens to specific investment trading tips. # TAG1writer