Investing Stock
Stock Investing 101 – How to Start Stock Investing
Investing in Stock
When you start stock investing, you are beginning a long process of learning and experience that you may use for the rest of your life. If you want to start stock investing, you may not be sure where to begin. No amount of book reading will make you an expert stock trader. Do some initial research and settle on a short list of stocks that are interesting to you for whatever reason. Then invest a small amount in one or two stocks – and then watch them.
You have your money and you are ready to invest. Before you start to invest your money, you have to know your risk profile. Knowing your risk profile is one of the most important factor in stock investing.
Each investors have their own characteristic. There are investors who choose high risk investment instrument with high return and there are who likes the safe instrument even though it only gives a little return. By knowing your risk profile, you can invest your money that suit your risk profile.
Beside knowing your risk profile, you have to know time horizon for your investing. Is it short term (below 1 year), intermediate term (1-5 years), or long term (more than 5 years). In determining the time horizon, investors also depend on the type of investment instrument. For example if you invest in bonds or property, your time horizon should be long term. If you invest in stocks, your time horizon should be short term or intermediate term.
Stock Investing Procedures
If you never invest before, here are some procedures to do invest:
1. Determine your purpose of investment
2. Determine your risk profile
3. Determine your time horizon
4. Choose your investment instrument based on your risk profile and time horizon
5. Study carefully the characteristic of your investment instrument (stocks, bond, property, etc)
6. Knowing the risk and return of your investment instrument
7. Prepare your money to be invested
8. Open an account in one of the broker (e.g. stocks and bond) or in property agent (e.g. property)
9. Be conservative with your money when you do your investment for the first time
10. Evaluate your chosen investment instrument, is it give you profit or loss
11. If you got many profit and some or little loss, you are now an experienced investor.
12. Keep studying about investment even though now you are an experienced investor
Stock Investing – Is It For Me?
Stock investing involves understanding and being able to crunch numbers together, and if you don’t possess this talent then you can still invest in stocks but should hire someone to do the investing for you. You don’t want to invest the entire $1000 into one stock though you want to choose either 2 or 3 stocks to separate the money into so that your money isn’t tied up with one company.
In the case your stocks start earning you should reinvest the profits back into either the same companies or new stocks. You don’t need to start investing huge amounts of money, just take it slow and as you build up good earning stocks you’ll notice your portfolio earning great dividends for you.
Also read about penny stocks and investing online
