Tuesday, August 23, 2011

Why You Should Buy Cheap Stocks


Are you looking to increase the net worth of your portfolio? A lot of people have problems with doing this and the reason is because they don’t know the best way to do it or who to learn from. If you are a somewhat experienced trader then you know that in order to add to your portfolio there is only 2 ways to do it. Those 2 ways are to add more money into your portfolio or wait for the share prices to increase.

Why Buying Cheap Stocks Make Sense

Easier to manage – Something that you need to understand is that cheap stocks are much easier to manage than higher priced ones. The reason they are easier is because they don’t put a lot of stress on you because they don’t have such big up and down days. When you start to trade stocks that are over $100 you will quickly lose sight of all the movement because of how often they move and by how much.

Can accumulate more – One other reason why buying cheap stocks is a better idea is because you don’t have to have a lot of money to accumulate them at a quick rate. Most people don’t understand what accumulation can do to your portfolio but just know that the more shares you have the faster your portfolio will increase. When it comes to stock trading it is very important that you accumulate as many shares as possible because doing this will help you and your portfolio more than you will ever know. All you need to do is buy a certain amount of shares each week or month and you will see your portfolio grow consistently.

More volatile – Were you aware of the fact that cheaper stocks are trader more, mostly because regular investors understand them better and this is what makes them so volatile? This is important to know because if you don’t realize how volatile a stock is then you will not know how quick the share price can change on you. Although higher priced stocks are very volatile as well, they are just not as volatile compared to some of the cheaper stocks out there.

As you probably already know, stock trading is a risky business but if you can do it right at least 75% of the time then you will have no problem increasing your portfolios net worth. When it comes to increasing your portfolios worth the best thing you can do is stick to buying cheap stocks while they are still cheap.

Saturday, August 20, 2011

Why Online Stock Trading Is Not As Hard As You Think

Are you tired of never being able to make money in the stock market simply because you are always at work or doing something else when the stocks drop to record lows? A lot of people have this exact same problem but to be honest you don’t have to be by your computer to trade stocks as long as you know how to setup an order prior to the day starting.

What most people don’t realize is that they don’t have to know where the price is going in order to buy it at a great price. If you are like most people and want to buy from the long haul then you can set a buy order at a price that is somewhat low and just sit back and hope that the price gets there and goes back up. The reason this works is because you never have to be watching the market, you don’t have to be on the phone with a stock broker and you don’t even have to be by your computer. All you need to do is setup your trades the night before, weeks before, and months before.

Everybody wants to trade stocks online but they don’t all know how it works. Trust me when I say that setting up a trade for some time down the road is a great way to make money and for a lot of investors that is their strategy.

For example, if you want to make a lot of money in the stock market over the next couple of years then you should really consider putting more money into your shares right now that the prices are still rather low. This is the time to buy and for all of those people who are selling off what they have, they are just giving you the opportunity to make money off of them. This is what I try to do every time the market drops and time and time again I keep on making money.

I don’t make millions of dollars every year trading stocks, but what I make over the course of an upswing is much more than many people will ever invest in their entire lifetime. If you want to make the amount of money that you dream about then I would recommend setting up all your trades beforehand and just waiting until they hit. It might take you a few times to get it perfectly right but just like with anything about stocks, it is all a learning process. Just remember that in order to make money in the stock market you need to always look for quality stock trades.

Saturday, August 6, 2011

The Advantage Of Buying Stocks Right Now


If you have been watching the news then you have been seeing how stocks have been dropping, right? If you are new to the stock market then you are probably wondering if you should keep buying of sell off all your shares. What you need to be doing is buying as many undervalued stocks as you possibly can right now. The reason why you should buy a lot of undervalued stocks is because once all the government debt talks are all over the prices of all the stocks will start to rebound and this will create a golden opportunity for you.

If you think that you should stay out of the stock market simply because of the volatility levesl then think again, the nice thing about volatility to a long term investor is that it won’t affect you because you are not wanting to buy and sell stocks within days from each other. If you are looking to add to your retirement account or you want to establish a long position then now is the time to do that.

The Benefit Of Buying Stocks Now

Less Expensive – Yes, stocks are cheaper right now. If you want to find undervalued stocks then just look around on the internet and you will find them. The best part about buying into a company that is undervalued is that the price will go up at some point so you don’t have to worry about losing your initial investment. Something that you need to understand about cheaper share is that they are not always considered undervalue, many times shares prices drop because the companies value drops and if that is the case then you should stay away from them for now.

Still Good Companies – Something that I bet you didn’t know is that the companies out there are still going strong, it is just that the stock price is taking the hit. All you need to do is take a look around and you will find good companies with low share prices both in the U.S. and around the globe. My advice would be to diversify your portfolio because just buying things in the United States might hurt you later on. Just remember if you are going to buy any stock you need to ensure that you have the money before you risk it in the market.

Easy Profits – Another reason why buying stocks now makes sense is because you will see very quick profits. If you don’t like the idea of stocks because most of them take years to return a profit then don’t worry because in today’s market it will take less than a year for a huge return on your investment. Just know that in order to profit from the stock market you need to be in it and that is why I suggest doing some undervalued stock trading right now.