Your neighbor enjoys watching the financial news and occasionally he buys or sells a number of common stock shares in a publicly traded company. How does he do it?
He knows why he does it, before he plans how to do it. He seeks to invest in a growth company before many other investors realize it 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 a plus to a minus. “How” starts with getting current, relevant and actionable investment information. A variety of free television and online resources provide that information.
Your neighbor records CNBC morning and afternoon investment television shows. After coming home from work, spending time with family and enjoying dinner with family, he spends thirty minutes – up to an hour navigating CNBC daily shows to learn investment news about the day’s financial markets. Perhaps, he will gather information about a particular company whose shares moved up or down in the news. He searches the internet for the company name in order to learn its stock symbol.
He enters the “Big Charts” to learn about the company and how its stock has worked today, and for periods of time, paying close attention to the size of the company, and whether or not it pays a quarterly dividend. By looking at the stock indicator, accompanied by the words “dividend schedule”, it can reveal that the company will pay the next dividend to shareholders who own the shares on a short-term date.
Your neighbor does not gamble. Ai investon. Rarely will he invest in a stock worth of news. Instead, from research, he may decide to add that stock to his watchlist in order to do a more in-depth analysis of what has caused the stock to move up or down in the past. Over time, he has amassed a list of about 30 stocks, with some in all ten sectors of the S&P 500. From CNBC shows, he learns which sectors are thriving today.
He trades shares with a reputable online broker who charges a $ 6.50 per trading commission. He trades only using a limited amount of money he has set aside for this purpose. He prefers to buy no more than 100 shares of any stock, and he made the purchase about a month before the company’s former dividend date, when the volume has increased in trades in that stock and he sees that the price has started to rise. He sets the purchase price as a “limit” order (because he does not want to buy if the price rises rapidly above his target price), and he keeps that order alive by choosing “good until canceled”.
If the new news changes the settings, it cancels the purchase order. Selling is a bigger challenge. After the acquisition, should the stock price rise rapidly, the temptation to sell it for a quick profit arises, but we assume that the business of the enterprise has started to rise to a new great level (stocks to be held and to passed on to grandmothers)? He pays more attention to stock news before deciding what to do about selling them. If stocks fall into unexpected bad news, he usually sells with little thought because this can limit the loss and he can calculate losses on gains on other stocks for the tax year.
not a trained professional, licensed for investment, your neighbor as well It’s not you. Do research, limit risk, and carefully learn about investments that may work for you. Your neighbor never invests in what he does not understand and never listens to specific investment trading tips. # TAG1writer