Easy Stock Tips for Beginners By Easy Cash Trade
Stocks always fascinate people as a source to make quick money. The best stock investment strategy for beginners is to keep it simple, and focus on making investment strategy over stock picking. You don’t need to choose the best stock or even the best stock funds if you have an investment strategy that keeps you out of trouble. Following are some easy stock tips for beginners to help them choose the right stock:
When you invest fund in stocks, they are called as equity funds and come in two popular varieties: mutual funds and exchange traded funds (ETFs). It is good to start with any of these two different ways: by opening a mutual fund account with a major no-load fund company, or by opening a brokerage account with a discount broker. Either way, you can get the best stocks without risking your money.
Save this account as your stock investment account. All of your money will be either in stocks (equity funds) or in cash in the form of a money market fund that is safe and pays interest in the form of dividends. The key to your stock market success is that you must not invest your entire fund in equity funds or stocks. Instead, you should choose your target allocation and stick with it.
You should not become over excite and therefore, so you pick 50% as your target allocation to stocks. It means that no matter what happens in the market, you will keep half of your money in equity funds and half in the safety of a money market fund earning interest. This is a proven stock investment strategy.