With some luck and good planning you can have a investment portfolio that makes money. Here are some tips on having a winning edge when it comes to stocks.
Things You Will Need
If you are a small investor you need to work harder then the big traders. You need to do better research and level the playing field with the big stock brokers. First off you need to understand that its easier to manage your small amount of money compared to the big accounts that the brokers have to deal with. You have small overhead and can trade out of your home. Buy stocks and bonds directly instead of going through a mutual fund. You can buy treasury bonds instead of buying into a bond fund. You will not have to pat manage fees if you are trading yourself,just small commissions.
Look for stock groups that are currently out of favor you can pick up some great investments this way. Invest for the long term. This will keep you from losing money in the daily chop of the markets. learn to swing trade keeping a position for a week or more. You can also save money on taxes if you keep securities long term. You should only invest long term with money you won't need for 3 years. This also allows stocks that are down to come back for you to maintain profits.
Start out with your money invested in small caps and work up to the big cap market. Most small investors that do research and are careful can make a nice profit from small cap stocks. Money management is nothing more then putting together a solid portfolio of safe securities and bonds. Make sure to diversify your stock selections. Don't overpay keep your commissions low and use a quality broker. Don't get greedy have a stock trading plan and stick to it.
If you can afford it make sure to buy some blue chip stocks. Along with small companies this will help your portfolio be more diversified.You should look at buying stocks in the United Kingdom , Japan foreign markets this is often overlooked by a new investor. Keep your stock investments roughly 30% blue chips, 30% small caps and the rest in safe long term bonds. You can change these percentages but they are a good starting point when investing.Array