Investigating investments in the neighborhood

Your neighbor likes to watch the financial news and occasionally buys or sells a series of common shares of a publicly traded company. As it does?

He knows why it does, before planning how to do it. You are looking to invest in a growing company before many other investors notice and raise the price of common stock. But you also like to win at what you do, and this aspect of investing can go from a positive to a negative. The “how” begins with obtaining current, relevant and actionable investment information. A variety of free online and television resources provide that information.

Your neighbor records the morning and afternoon “CNBC” investment TV shows. After you get home from work, spend time with family, and enjoy dinner with the family, spend thirty minutes to an hour flipping through the day’s CNBC shows for investment news on the financial markets for that day. . Perhaps, collect information on a particular company, whose shares rose or fell according to the news. Search the web for the name of the company to find its stock symbol.

Access “Big Charts” to get information about the company and how its shares have performed today and over time periods, paying particular attention to the size of the company and whether or not it pays a quarterly dividend. By looking at the stock indicator, along with the words “dividend schedule,” you might find that the company will pay the next dividend to shareholders who own the stock at an early date.

Your neighbor does not play. He invests. You will rarely invest in a newsworthy stock. Instead, through research, you can determine to add that stock to your watch list to do a more in-depth analysis of what has caused the stock to go up or down in the past. Over time, he has amassed a list of about 30 stocks, some in all ten sectors of the S&P 500. From CNBC’s shows, learn which sectors are advancing today.

Trade stocks with a reputable online broker who charges $ 6.50 for trading commission. You only trade using a limited amount of money that you have set aside for this purpose. You prefer to buy no more than 100 shares of any stock, and you calculate the purchase approximately one month before the company’s ex-dividend date, when the volume has recovered in those shares transactions and you see that the price has started to rise. . . You set the buy price as a “limit” order (because you don’t want to buy if the price rises quickly above your target price) and keep that order alive by selecting “good until canceled”.

If new news changes the parameters, cancel the purchase order. Selling presents a bigger challenge. After the purchase, should the price of the shares rise rapidly, is there a temptation to sell them for a quick profit, but suppose that the company’s business has started to rise to a new important level (the shares to hold and pass on to grandchildren)? Pay more attention to the news about stocks before deciding what to do to sell them. If stocks go down on unexpected bad news, you usually sell without much thought, because this could limit the loss and you can count losses against gains in other stocks for the fiscal year.

No a trained and licensed investment professional, your neighbor too it’s not you. Do research, limit risk, and learn cautiously about investments that might work for you. Your neighbor never invests in what he doesn’t understand and never listens to specific investment trading advice. # TAG1writer