Stock Tip Central

Do the very words “online trading” send shivers down your spine? Hold on, we’re going to stop those shivers. By the end of this article, you’re going to want to open your very own account, so you can give it a whirl! Historically, quality stocks purchased at a reasonable price and held as the company increased in value, has been one of the most lucrative ways to increase your net worth. Wouldn’t your lifestyle in retirement be a little better if you had bought a 100 shares of Google only a few years ago?

So, let’s begin at the beginning. There are two types of stock. One is preferred and the other is common stock. Most individually held stocks are common stocks, so that is what you would be purchasing as an individual stockholder. You would own a small portion of the company and have a right to vote on the board of directors and other matters concerning the company. If the company becomes profitable, you will receive your proportionate share of the company’s profits, according to the number of shares you own. You have limited liability if the company goes belly-up and your loss would be only the amount of stock you own. A privately owned company could be held accountable for the losses of the company.

Online trading platforms have become very user friendly for the novice trader and it just depends on which platform you find easiest to maneuver and understand. All of the large companies have trading platforms today. Compare the setup minimums to open your account and also be sure to read the fine print. Avoid extra charges for maintenance or inactivity fees. Start by looking at Fidelity, E-trade, Wells Fargo, TD Ameritrade, Scottrade and Charles Schwab. A trial period is offered by many, so you can actually use the software before you decide.

Forex predictions change daily. Paper trading encompasses the futures market, which includes metals, food and fiber, currencies, indexes, grains, energy, livestock and dairy, housing and interest rate futures. Most stock trading platforms trade futures. You may want to read and compare the fine print before signing on.

Pennystocks are stocks that trade smaller, more highly speculative companies at anywhere from one penny to a dollar. These companies are most at risk for scams, so beware. Do your research and learn as much as you can before investing. If you do happen to find a growing company and are able to purchase a large number of shares for pennies, then you stand to make substantial gains.

If you feel you need to use a Financial Advisor, you may want to find someone through recommendation and has a good track record with the proper credentials. Make sure they are either a Certified Financial Planner(CFP), a Chartered Financial Consultant(CHFC), or a Certified Public Accountant, who has passed the Personal Financial Specialist exam. Each of these can assist in setting financial goals, allocating your resources and give you tax and estate planning advice. Be sure to ask about their specific compensation plans.

My favorite financial website is Motley Fool. Go to www.fool.com and play the MyCaps game. See what other investors are buying and compare your picks against over 40,000 other players, seasoned and novices just like you. It’s the best way to learn! Try it, you may surprise yourself!

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