Investment Articles

Hello, my name is Sam and I’m going to teach you guys the importance of investing. What risks are involved and whats the profits that you could inherit. About a year ago I was in my economics class when I was truly introduced into the stock market (Senior Year). My teacher made us play a stock market game with “virtual money”, and divided us into equal teams. We both had $50,000 to play with and only 2 – 3 stocks to pick. To this very day I don’t remember what stocks I picked, but at the end of the school year my team was the winner with $100,000+ more in gains. I was in shock.

How did “I” win the market game? Easy I research the stocks that interest me the most. At the time it was computer and technology companies. This was fun to research since I was a big fan of technologies, so I focused all my attention on those types of stocks. As for you, do the same by finding you best market. It could be from clothing lines to energy corporations. Just find your niches, then do research on the companies. So while doing I came across many; in not hundreds of virtual stock market games online. This is where I became the master at such young age and actually taught myself. I signed up for one of the virtual market games which I quickly learned and began trading with the stocks I research. I kept a daily tab on news information about those stocks and spotted where I needed to sell out.

So here are the steps you need to follow.

1. Get a paper and pencil out, or notepad and start writing what your favorite categories are.

2. Start looking for Companies in your categories. Start with a minimum of 5

3. Look for a virtual stock market trading game. I prefer Wall Street Survivor.

4. Bookmark Wall Street Journal, and keep tabs on your stocks. ( News + Press Releases)

5. Keep, trading your account about 3 – 5 times a week to keep up. Watch your profit and losses.

6. Every Saturday keep a record of how much you gained or loss.

Now once you’ve master the stock market or feel confident, go ahead and open a trading account with any brokerage. I prefer Scottrade since their commission on trades are only $7 flat. Also start your account with only $100, and only use money you can afford to loose. The more confident you feel, the more money you’ll be able to risk. Never jump the gun.

Manage your profits! I’ve seen young people my age blow away their profits and don’t think about the future. Upon gaining your profits don’t use them to party or brag. Instead save them for later use, or on something much more valuable; your first house, car..etc.

Example:

You bought XYZ @ $3.50 a Share, you bought 500 shares.

2 Weeks later XYZ went @ 19.50 a Share and you sold.

You gained $7000-$8000, Save it or re-invest at least 35% of it.

Thanks For Your Time.

Top eBooks on Investments

Investing your money is a good way to put it to good use for your future. This means that you need to invest wisely, and you will need to learn all you can before you start. There are many different ways to go when you start out, but here are some tips to help you save money as you start investing it.

Learn From the Experts

As you start out in the investing world, you want to make sure that you are doing so as an informed investor. These are the only kind that make any money in the long run, and you want to be sure that you are one of them.

Many books are available in your library on the subject, as well as much information can be found online. Be sure to do more than just a little reading, because only knowing a little will most likely be of little profit. The more you know the more you can profit from being able to make the right choices.

Know How to Trade

Knowing how to trade will save your investment money as much as possible and enable you to make a profit from it. Study the tips available from professional day traders and online investors, as well as the well-known traders like Warren Buffett. Their tips are invaluable when to comes to making a profit, or knowing when to sell or buy stock, or other investments, too.

Trading effectively and safely means that you will need to learn all the terms that apply to trading. Be sure also to know how the system works so you can use the system to your advantage. If you work through a broker, know how it works and where there may be weaknesses in that approach. Online trading may be one of your best methods if speed and results in real time are necessary for your trading technique.

Choose Your Investments Carefully

Knowing what you are looking to do with your investments will help you to determine what type of investments you should make. There are many different ways to invest. Investing includes markets like real estate, stock market, mutual funds, Forex, bonds, metals, and much more.

You also need to choose whether you want fast-moving markets, which you need to watch as the trading is taking place, or the slower markets where you simply let your money sit. You also could invest in both to provide a greater overall stability in your investments.

Balance Your Investments

Wise investing will also include a balancing of your investments – developing a balanced portfolio. This is necessary because a market may crash unexpectedly and you could lose all of your investments in that area, or sector. Divide up your investment money into 5 or 6 parts and place each part into different types of investments, and in different sectors. One sector may be in electronics, or communications, another in metals, another in business start-ups, etc. If they are all in one sector, you could lose them all at once.

You also want to have a balance among your investments in the sense of time. Place some of your money into long term investments such as bonds, CD’s, or mutual funds. Other money can go toward long term stock investments, and some towards short-term investments where money can be made quickly.

Learn how to invest in shares at http://www.i-tradeoptions.com

James McInnes is a professional share market trader and investment entrepreneur, with many years experience trading the Australian Share market. You can visit his site to learn about Trading Options In Australia.