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Stock Investing and How Do Brokers Help

Stock Investing Help

Although stock investing can be a great way to add to your wealth, it can be a confusing and intimidating endeavor. This is why most investors chose to employ a broker to help manage their finances and investments. Though some decide to tackle investing on their own, a broker can offer many services most would be unable to achieve alone. Selling and buying stock on your behalf is one job a stock broker has, but a great stock broker will do so much more.

stock investing help

If you are new to investing, there is one disadvantage that could make or break your investing career: experience. While reading all the information, learning about companies, and talking to other investors is a great way to begin, there can be leverage in having real world experience in the stock market game. Brokers are experienced in several different types of investing, which makes them like the encyclopedia of investment. We also recommend talking to more than one broker and trading firm. You will find more suggestions and investing ideas as you talk to more and more investors.

Keeping your broker’s experience in mind, he or she can be a great tool in helping advise which stock purchases you make. There may be new investments you hadn’t considered, and it would be your broker’s job to make those known to you. Additionally, he or she could help you decide what times are best to buy and sell your stock, taking into account trends and direction the stock market is headed.

As time passes and you dive deeper into investments, your portfolio will – or should – start to really diversify. This is a good thing, but can also become hard to manage the larger it grows. Brokers are great for managing your portfolio, keeping track of how much you are making from each investment, what needs to increase, what needs to decrease, and so much more.

Depending on the relationship you have with your broker, you may also learn your own way around investing. By asking questions, keeping an open mind, and paying close attention to the work your broker does, you will start to gain confidence and be able to make more of your own decisions. Eventually, you may be able to depend less on your broker and gain control over your own assets. As a word of advice here, even though you may one day feel you know which way the market is going to move, take your time and be very afraid of option investing until you are really good at all this. The biggest danger you have in investing is believing you know what is going to happen or believe 100% what someone tells you.  Go slow and remember stock investing is not a game and never risk what you can not afford to lose.

What is a Bear Market, and How does it Affect Investments

What is a bear market? While there is no one definition of a bear market, in short, it is when the stock market falls for a significant amount of time. Though the amount of the decrease can widely vary, bear market is usually defined as a drop of 20% or more. To be considered a true bear market, this fall must last for a few months at least, as opposed to a correction which is a short-term decrease. Bear markets can be caused by a variety of things. The economy can play a huge factor in a drop in the stock market.

A bear market can really throw a kink into short term investor’s plans. The best way to make money with investments are to “buy low and sell high”. At the beginning of a bear market, many may buy stock in hopes the market will correct itself and cause quite a gain in money. If the market stays down, however, there is no money to be made. Stagnant money – especially at low rates – does nothing positive for a portfolio. The expectation that money can be made with a sell can drag out for months, giving false hope to the investor.

If you are a long term investor, however, things may look good. If you have no intention of selling anytime soon, buying stock with appropriate companies at such low prices can really pay off in the long run, when the market gets back to normal.

You may be tempted to think the trend will last forever, and sell what stock you have in attempts to keep your dignity. This isn’t always the best idea. Selling stocks for less than you bought them can cause a significant loss. The best thing to do in this situation is to put your money with safe companies that you know will eventually rise up. It is important to look at the business itself and not their stocks at one point in time. If you decide to buy safe stocks at such a low price, holding on to them until the market gets back on its feet can really help you in the long-run.

What is a Bull Market, and How does it Affect Investments

A bull market doesn’t have any one specific definition, but the general idea is a significant increase of the stock market of an extended amount of time. Stocks can fluctuate often, as is the nature of the stock market, but to be considered a bull market, it is generally accepted that 80% of all stocks rise considerably – at least 15-20%. You may wonder what would cause such a variation, and the answer is usually the economy. A better economy causes lower unemployment, higher spending, and companies almost always do better, which increase stocks. Other factors definitely are considered, but economy seems to have the largest influence.

What does a bull market mean for the investors? If you can time it right, there is great money to be made in a bull market. By buying stocks before they rise too high and selling as they reach their peak, a lot of return can be expected. However, this is easier said than done.  The stock market is unpredictable at best, and can be near impossible to anticipate.

There are things to look out for when trying to map out the correct times to buy and sell your stocks during a bull rise. Watch for “dips” in the surge of prices. This can be a great time to buy shares, if you were unable to catch the rise in the beginning. Of course, there is always the chance that “dip” turns out to be the beginning of the inevitable downfall, so it can take a trained eye or good luck to catch it at just the right time.

Another thing to consider is that most investors, especially experienced ones, will fight for a good trade or sell in this market. Some hold on to their shares for dear life, some are a little more liberal with their trades, but you can be sure the market will be active in this time period.

All in all, the bull market can be a great time to make a substantial amount of money, if you are willing to take the risk. Do your research, consult your broker if you have one, and make informed decisions, and you may be lucky enough to thicken your investment earnings and portfolio.