SearchExclusive.com

Guide to Investing in the Stock Market

Investment legends observe anything comfortable is rarely profitable! Considered to be highly volatile, stock markets give you a roller coaster ride more often than you would expect. However, with considerable planning, when you make an informed investment in stocks, the chances that your money will multiply is high.

If you are a newbie that is both excited and confused on how to step into the world of the stock market, here is a guide that will help you take those baby steps. Various apps and online stock brokers can assist you in making good decisions. Yet, you may have quite a few questions. Read on to clear them off.

Determining the investor type

The ways to approach stock investments are many, and you need to choose the type that best fits your situation. If you are the DIY type of investor who intends on choosing stocks and stock funds for himself, then you need to choose between the following two types of investments.

Stock or equity mutual funds

Such mutual funds allow the investor to purchase small pieces from various stocks through a single transaction. The Index funds and ETFs help track index. As an example, Standard and Poor’s 500 funds can replicate index by purchasing stock of companies within it. By investing in the fund, you end up owning small pieces of those companies. If you are interested in building a diverse portfolio, then you can put several funds together in this way.

Individual stocks

If you have your eyes on a specific company, then you can dip your toes into the stock trading water by buying one or more shares of that company. If you do not want to make a major investment, then this should be your choice since investing in many individual stocks requires a significant investment.

The diverse nature of stock mutual funds keeps risk to a bare minimum. However, where there is a lesser risk, there is also lesser gain. It is highly unlikely for mutual funds to have a meteoric rise like some individual stocks have. This is exactly the upside of individual stocks, and the downside is that they are quite risky.

Determining the budget

One of the two questions asked by beginner investors is how much money is needed to get started? Well, the amount of money to be invested depends upon the current price of individual stocks. If you have a high taste with a limited pool of money then investing in fractional shares or pieces of stock might be the best option for you. But what you need to remember is that you said you like mutual funds. Then the best option keeping in mind that you have a small budget is investing in ETFs. Mutual and index funds have a minimum of $1,000 and above while ETF’s trade like a stock. This means that you purchase them at the share price and not on fund minimum. So, the share price can range from $10-$100 or more.

In case you choose to invest through funds, you can invest a fairly large portion of your portfolio towards stock funds and especially so, in case of long time horizon. A 30-year-old can afford to have 80% of his portfolio in stock funds if he is investing for retirement. He should then invest the remainder of the portfolio in bond funds.

When it comes to individual stocks, this is another ball game altogether. If you choose to invest in individual stocks, invest only 10% or less of your portfolio in it. This is because trading in individual stocks involves major risk. It lacks the built-in diversification of fund and is more of hands-on effort. While buying stock, refer to reputed free stock charts for comparison of stock quotes.

Opening an account

To open an account, you can use an online broker for buying stock funds and various other investments while also opening an individual retirement account. If you already have one, then you can also open a taxable brokerage account. While opening an account, choose brokers with low fees and low account minimums. Also, choose one who offers real-time customer assistance. To open an account, some brokers may have a minimum deposit requirement while others may require a minimum balance that will allow you to access certain advanced features or trading platforms.

What do you choose to invest in?

While researching for individual stocks, you need to consider the list of the top 10 stocks for 2017 or top 10 stocks to buy. If you are looking for the cream of the crop, then consider reliable sources which publish lists such as the top 5 stocks to buy or top 5 stocks to buy now. If you intend to invest on a long-term basis, then invest in mutual funds or ETFs. These would typically be five years away. Usually, beginners and long-term investors do not have a preference on which type of securities to trade and look to get exposure to whole markets.

Lastly, every beginner needs to have control over his/her emotions since stock investment is a bumpy ride that has a lot of ups and downs. To master the art and science of investment, be patient and learn with every good or bad experience.

Related Reading

Tips for Buying the Best Dog Food

Most of the dogs do not have a food fuss and may eat almost anything that you feed them. Dogs are not choosy at all when it comes to food and nutrition. Hence, it is important to make sure that the food that you are purchasing for your dog is healthy. The landscape of dog food has been developing by leaps and bounds in recent times. There is a wide variety of options to choose from in the online and offline market. Given the wide range of options that are available today, buying the best dog food might seem to be a confusing task indeed. All the commercial pet food that is available in the market today is regulated by the FDA. Therefore, most of the products do contain nutritious, healthy, and safe ingredients. But it does help to know certain basic factors you should look for while buying food for your dog. Prioritize on the nutritional guarantee The best dog food, which meets the dog’s needs adequately has a statement written on the label of the product, from the Association of American Feed Control Officials. Buy from some of the best dog food brands, such as Fromm Family Foods, Earthborn Holistic, Nature’s Variety Instinct, and The Honest Kitchen.

Different Types of Kitchen Cabinets Available for Your Home

The most important aspect when designing your kitchen is deciding on the type of cabinets. In addition to functionality, kitchen cabinets score on aesthetics as well. Once the layout is planned, you can go ahead with choosing the cabinets. If you’re remodeling your home or just the kitchen, what you need to consider are the types of cabinets that furnish your kitchen. Here are a few types of kitchen cabinets that you can choose from. Base cabinets These kitchen cabinets are mounted on the floor and they are placed after checking out the floor plan. A major part of your job in the kitchen is on these base cabinets, which hold and support the countertops. These base cabinets are combined to carve out kitchen islands. A number of base cabinets are fused/set against one another and installed on site. The base cabinets, in addition to supporting the countertops, serve as drawers to hold your cutlery and appliances. Wall cabinets Mounted on the walls, these cabinets can store everything, right from your cookware to cookbooks. In terms of design, they offer utmost flexibility. Wall cabinet kitchen is available in varying heights, multiple widths, and custom depth options. This customization helps you to fit in your stuff of varying shapes and sizes into the wall cabinets.

How to Pick the Right Dog Food for a Sensitive Stomach

In today’s world, where you are presented with over a dozen choices for every item you would purchase for your own kitchen, it is not surprising that you have an equal number of options for your dog’s food. However, choosing the perfect brand and formula for your dog out of a range of options in the market is not an easy job. Your pet depends on you and trusts you to make the right choice for them. Therefore, it is imperative that you do your research about the products available in the market, understand what your dog needs, know what might be your pet’s problems, and then make a sound decision. What is a sensitive stomach? Dogs are known to have voracious and large appetites. Keeping that in mind, it is normal to assume that they have strong stomachs. They can eat close to anything be it sweets, bakes, chewy gum, hard leather or even woolen socks for that matter! It always so happens that the strongest of them are prone to allergies and can develop a disorder which is medically translated as a sensitive stomach. This might be due to a sudden change in the food habits or even due an infection picked up from somewhere.

All You Need to Know about Cat Food

For cat owners, cat food is a hot topic. You need to think about it in different aspects. The best thing is to know which ingredients are good for cat food and which are harmful. If you are aware of this, you can get an idea about the quality of the cat food just by going through the label. It is always sensible to stick to one brand of cat food. However, you may also want to try and prepare cat food yourself. There are also various options for wet cat food as well. Cat’s love for fish is universal, so you can do without going for expensive cat food. Nevertheless, whether you buy it or prepare cat food at home, you need to ensure that the food contains enough nutrition and calories. You would need to have some idea about the ingredients that must be present in cat food and make a worthy selection for your cat. Basic ingredients present in good cat foods Cats need a variety of nutrients to stay healthy and active; they need various vitamins, minerals, fats, proteins, and oils. The following is a brief explanation of the basic ingredients that should be present in cat foods.