Thursday, December 14, 2017

So You Decided To Invest.....What Are Your Options!

Inside the NYSE New York Stock Exchange

    You finally have it in your heart & head. That the future of your remaining days will indeed be better off when you invest in the businesses that you support every day. That the products & services you use day in and day out. Things you love so and spend your hard earned cash on can actually be returned to you in the form of dividends and compound interest. Providing you a comfortable retirement lifestyle.  You've realize that the rich, when investing wisely into stocks, bonds, ETF, & mutual funds is what keeps them wealthy.

Stock Market Flow Graph Charts
 In the long run, you and yours will be better off financially. Will it be easy, no! There will be continuous improvement as you move forward. Your knowledge base will increase as well, which will lead to better trades that will eventually grow your yield's & gains therefore increasing your bottom-line. You can ride off into retirement bliss.

    Well, we now have the simple short version. Sweet right?  Reality, is nothing worth while is ever easy. Point blank! The world of stocks & trades can be a complicated one if taken in to fast. So our first endeavor is to take a few baby steps into your start-up. 

Let's take it slow!

   The most essential tool at your disposal will be research. Every piece of information about the companies you are interested in and how world events relations to that business should be scrutinized. In the business world as I mentioned in an earlier post. An event clear across the world can have a effect on the future business that you have shares in.

Traffic sign Investment
   You may have an interest in "oranges".  In Florida, one year you can have a outstanding crop production and returns are impressive. The next year a freeze can accord, causing a low product output. Which in turn will affect the industry as a whole including the cost of oranges.

So, let dig in.......

Several steps that can be implemented immediately. 

  1.  Check your own 401K, mutual fund participation  
  2.  Pretend trading
  3.  Trade plan
  4.  Picking a broker
  5.  Prepare to make a long term investment. 
#1)  Check your job for 401K, mutual fund participation:

401K Retirement  Money saved in a bag

    Do you currently contribute to a retirement fund?  Are you getting out of it what you expect? Should you increase or decrease your contribution? What is the cost of your plan? Check what your employer's matching contribution is. Some companies are quite generous in their employee contribution.

Will it meet your retirement goals?

#2)  Pretend trading:

   I have found that virtual investing apps can dramatically improve your strategy skills.
This Mock Trading has been highly rated. Step by step video guide. 

   Worth the efforts & actually fun. You can play the markets without risk. Find something that works......transport your strategies to your broker or real life tactics.
Surprise your broker with some of your own advanced trading skills.

#3)  Trading plan:

Trade Plan Strategy

Out of the strategies in your mock trading. 
Create a TRADE PLAN.

#4)  Picking a broker:

   What type of trader are you? Long term (hint), day trader, swing trader, binary, futures, commodities.
   Of the skills and knowledge consumed, heavy research broker firms. You can DIY trade with numerous online trade firm. Which have become pretty competitive in cost efficient per fees and trade limits. And if you are starting out small $500 or less. It's great hand-ons lessons down this avenue. However, this is your money we are playing with. So I would at minimal seek an  professional finance advisor.

#5)  Prepare for a long term investment strategy:

  • Less stress  
  • Compounding Interest will be your best companion.  
  • Blue chip companies consistently add value to your portfolio over time. 
  • Taxes & broker fees cut 

   Not that one can't make a substantial profit in the short term, swing trade or day trading. Because you can and people do. Yet, this type of trading involves a different kind of mindset along side an intense risk management strategy.  Thereby, requiring a whole new level of skill sets.

Investing is an investment in your future. If there was someone truly vested in my future and had mentored me into investing earlier in my life I would have. Now that I'm a bit older......It just makes plain good sense. Just wish I would I gotten it back then when I knew it all.

To build wealth, you must invest. Simple!

   If you are considering investing and in your 20's - 30's, began now with long-term investment into blue-chip companies

   In your 40's, you really should sit down with a personal finance advisor to discuss your current assets & options. Play the markets as your skill set permits. Of course, with the assistance of a broker, if you have the guts and finances, some short-term invest

   I must say that if a person really does their due diligence. They would find that this can be an interesting time to invest. Not to mention industries the likes of:
   Many more industries, businesses & start-ups are emerging.  Any one of which will make brand NEW millionaires out of the right investor, at the right time with the right amount of patience.

Jim Cramer's Members Only Investing Club

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