Rules for having an investing plan will help you make some money in the stock market. If you are a long term investor you need to have a plan to help conserve your portfolio and profits.

Most of the time you cannot lose with blue chip stocks over a longer term. You will need to diversify into several markets. Make sure to use a broker that is well established and has low commissions. If we are in a recession wait for about 6 months and start to buy stocks that are at there lows. A good stock at a small discount is a better buy then losing stock at a big discount. If you are not experienced at stock options you will lose all your money.

The most money you will make is when there are major moves in the markets. Keep an eye on support levels and buy or go short at these levels. News releases are a good thing but normally are already built into the price of the stock. Many times a stock will sell off after good company news has come out. Two keys to successful investing are to diversifying and hold your quality stocks for a long time. You need to learn from your mistakes when investing. Start off with small amounts of money and buy stocks at there low support levels and hold them for a few years.

Stocks will go up when interests rates fall and increase in value on future earnings and if the stock pays a dividend. Anything the increases the risk of future earnings will hurt the price of a stock. If a investment has short term price fluctuations you can make more money but the risk is higher. Your portfolio should have several different risk levels.Look for high yield stocks that increase the dividends over time. Companies that deal well with inflation are the ones to put some money into.

Bad news can make a stock's price fall. This is part of the risk in trading stocks. If a companies stock price is high then investors will watch for bad news and short the stock. The largest group of millionaires made their money from shorting stocks. Its better to buy a mediocre stock the one that is high priced because bad news will make it sell off. Remember you make money from the prospect that the company is going to have profits quarter to quarter.Look for value stocks all brokers will have a system in place to evaluate stocks.

Start out slow and do your research before investing money. You will find that your profits will be much better for it.When you select a stock look for excellence in share price and return on your investment.