Know More About Stock

    July 27, 2005

You must have never heard of stocks in your life and investment strategies must have sounded Greek to you. Or for that matter, you might have an ample knowledge of investing but the new technological components of investing have left you bewildered. No problem, you have to look no further. Here are a few tips if you wish to but stocks online.

The first step is to get familiar with the terminology. Before buying stock online you must know that buying with a ‘market order’ means that you agree to buy a given stock with the current lowest price.

It’s almost instant, and you are virtually guaranteed to make the purchase. Of course, you may not want the purchase to be that quick, so here’s another term beginners should be familiar with: Limit order. When you purchase this way, you set up ahead of time the most amount of money you are willing to pay for a given online investment option. Be warned though that this sometimes means you don’t get the stock at all, if it just happens to be doing really well and doesn’t fall to the range you set up. The last basic term is a stop order. Essentially it means that should a stock you purchased reach a certain level, it will become a stock you wish to sell, thus helping you minimize loss. Of course there are variations on all of these online investing options, but this should give you a beginners overview on the process as a whole.

You’ve probably heard the term ‘asset allocation’ before, but you might not know what it means in a practical sense. Essentially it means you want to spread your investments between stocks, bonds and real estate in order to insulate you from large losses.

Though the financial experts don’t tire of advising you to put the smallest percentage of your portfolio into higher risk propositions, yet many people tend to forget it. The reason is obvious; the temptation of high profits makes people behave recklessly. However, if you stick to the 10% rule strictly, you can save yourself from foolish mistakes. The 10% option simply means that you should put only 10% or even less in any one company, especially not in a higher risk proposition.

People are interested in knowing investment secrets to increase their wealth. Here are some: the fundamentals of building a good portfolio are the same. However, you can do many things to increase the chances of a particular investment. Although attractive, penny stocks are highly risky.

The risk inherent in these penny stocks cannot be totally eliminated, but a background check on the company’s assets and profits can reduce the risk to a minimum and lead you to the best penny stocks.

The worst kept secret of investing is Insider Trading. We all know it is illegal, but that doesn’t inhibit people from investing with insider information. But there is a legal and clean way also to trade with information not everyone has available.

What should be kept in mind is that investment tips and secrets just act as a guide to help you in making better decisions. But investing in stocks does expose you to some risk. Hence balancing your portfolio between high and low risk options and diversifying it is most advisable.

Mercato Azioneli is the owner and webmaster of
Fz Stock, Inc., a
leading Internet directory for stock information. For more
stock information and resources, be sure to visit: