Tips About Online Trading Stocks

Different Types of Bonds

2007-04-09T10:28:00.000-05:00

Hi! Welcome to my basic investment blog. If you were investing in bonds, do you think you know the different types of bond to invest in? Do you know if it's a safe investment? Maybe after reading my article today you might able to answer those questions for yourself, and determine if it's something you want to do. First, there are four types of bonds available that are sold through Government, Corporations, State and Local Governments and Foreign Governments.

It is said that with bonds you will get back your initial investment, and that it makes the prefect investment vehicle for those who are new to investing, or for those who have a low risk tolerance. Again, you would have to determine that, and maybe with your financial planner. Please review one of my previous articles on the "how to determine your risk tolerance" Click here!

The United States Government sells Treasury Bonds through the Treasury Department. You can purchase Treasury Bonds with maturity dates maybe ranging from three months to thirty years. Treasury Bonds include Treasury Notes (T-Notes), Treasury Bills (T-Bills), and Treasury Bonds. All bonds Treasury Bonds are backed by the United States Government, and tax is only charged on the interest that the bonds earn.

Corporate Bonds are sold through public securities market. And this is essentially a company selling its debt. They are a bit risky if the company goes belly up, then the bond can become worthless.

State and Local Governments, unlike bonds issued by the federal government, these bonds may have higher interest rates, and are free from income taxes-even on the interest. This is called Tax-free Municipal Bonds. To learn more about "what is a bond". Visit here!

Purchasing Foreign Bonds is actually difficult, and is often done as part of a mutual fund, and very risky to invest in foreign countries. The suggestion here is that it may be safe bet to invest in bonds that is issued by the US Government. For best results, when a bond reaches maturity, reinvest it into another bond.

To invest in bonds, visit Scottrade.com

My time is up....stay tune for more. Happy investing!

PS: Always investigate before you invest!

The Importance of Diversification-Stock Market

2007-03-27T22:49:00.000-05:00

Hi! Welcome to my blog. I hope that you found my previous articles to be interesting and informative. I really like posting simple articles about investing in the stock market, I think its a fascinating and exciting subject, and I hope some of you think so, if not pass it on.

My articles today is about Diversification. I'm sure you heard this expression before over, and over. "Don't put all your eggs in one basket!" That's the truth. Anyone that do that whether its in investing or in business did not think things thoroughly. Diversification in the stock market is the key to successful investing. All successful investors build portfolios that are widely diversified, and you should also.

Diversifying your investments might include purchasing various stocks in many different industries. It may include purchasing bonds, investing in money market account, real property and cash. The key is to invest in several different areas and not just in one, and besides you will actually be at less risk. It may also take time to diversify your portfolio. Depending on how much you have to initially invest, you should start with one type of investment, and invest in other areas as time goes by.

It is suggested that you spread your investment money evenly among your investments. For example if you have $100,000 to invest, then $25,000 in stocks, $25,000 in real property, $25,000 in bonds and $25,000 in an interest bearing saving account. Do you see where I am going with this. Great! Just remember the expression at the beginning of my article. "Don't put all your eggs in one basket!"

My time is up...stay tune.

Happy investing

PS: I have other great money making articles that might interest you. Click here! These articles is about building income online. Click now!

The Ultimate Financial Management Tool-Budget

2007-03-12T13:33:00.000-05:00

Hi! I promise from my previous post that we will discuss the subject on Budget. I think to be successful in your financial goals, you must have a plan. A carpenter uses a set of house plans to build a house. If he did not, then the bathroom might get overlooked altogether.

Rocket Scientists would never begin construction on a new booster rocket without a detailed set of design specifications. Yet most of us go blindly out into the world without an inkling of an idea about finances and without plan at all. No very smart of us, is it?

A money plan is called a Budget and it is crucial to get us to our desired financial goals. Without a plan we will drift without direction and end up marooned on a distant financial reef. If you have a spouse or a significant other, you should make this budget together. Sit down and figure out what your joint financial goals are...long term and short term.

Then plan your route to get to those goals. Every journey begins with one step and the first step to attaining your goals is to make a realistic budget that both of you can live with.

A budget should never be a financial starvation diet. That won't work for the long haul. Make reasonable allocations for food, clothing, shelter, utilities and insurance and set aside a reasonable amount for entertainment and the occasional luxury item. Savings should always come first before spending.

Even a small amount saved will help you reach your long term and short term financial goals. You can find many budget forms on the Internet. Just use any search engine you choose and type in "free budget forms".(Google, Yahoo, MSN)

You'll get lots of hints. Print one out and work on it with your spouse or significant other. Both of you will need to be happy with the final result and feel like it's something you can stick to. My time is up...stay tune for more.

Happy investing!

How Much Money Should You Invest?-2

2007-03-04T23:13:00.000-05:00

Hi, Welcome Back! I asked in my previous post to think about 2 questions. How much money should you invest in the stock market? Do you think you should invest all your savings? For the second question this is not necessarily true to invest all your savings? I think that would not be a smart investor. But how much should you invest? First, let's take a look at how much money you can currently afford to invest. Do you have savings that you can use? If so, great!

However, you don't want to cut yourself short when you tie your money up in an investment. What were your savings originally for?

It is absolutely important to keep three to six months of living expenses in a readily accessible saving account-don't invest that money! Don't invest any money that you may need to lay your hands on in a hurry in the future.

So, begin by determining how much of your savings should remain in your savings account, and how much can be used for investments. Unless you have funds from another source, such as an inheritance that you've recently received, this will probably be all that you currently have to invest.

Next, determine how much you can add to your investments in the future. If you are employed, you will continue to receive an income, and you can plan to use a portion of that income to build your investment portfolio over time. Definitely speak with a qualified financial planner to set up a budget and determine how much of your future income you will able to invest. (An up coming post we will discuss The Ultimate Financial Management-The Budget...stay tuned)

PS: Never borrow money to invest, and never use money that you have not set aside for investing! And with a help of qualified financial planner, you can be sure that you are not investing more than you should-or less than you should in order to reach your investment goals. Here are two websites to examine. FinancialPlannerNetwork! or
fpanet.org You can also search the internet using the keyword search "financial planner" using Google or Yahoo.

Happy investing......stay tuned for more.

How Much Money Should You Invest?

2007-02-27T14:24:00.000-05:00

Hi, Welcome Back. My time is limited today so in case you missed some of my previous post, here is a few you can catch up on in the mean time: Choosing a Broker that Right for You. How to Determine your Risk Tolerance. Determining Where You will Invest. Investing Basics-What Are Your Investment Goals. Getting Your Feet Wet-Begin Investing.

In my post today I want you to think about these questions. How much money should you invest in the stock market? Do you think you should invest all of your savings? Well, do you know that many first time investors think that they should invest all their savings, and this isn't necessarily true. To determine how much money you should invest, you must first determine how much you actually can afford to invest, and what your financial goals are. (You would see financial goals mention a lot because its important). Like I mention at the begin of this post my time is limited, so stay tune for more.....

Happy Investing

Getting Your Feet Wet-Begin Investing

2007-02-26T14:54:00.000-05:00

Okay, now that you have read my previous articles, you think you are ready to begin investing without having a lot of knowledge about the stock market. Here is some basic things you can begin with, and you can start by being a conservative investor with a low risk tolerance. This will give you a way to making your money grow while you learn more about investing.

Start with an interest bearing saving account. You may already have one. If you don't you should. A savings account can be opened at the same bank that you do your checking at-or at any other bank. A savings account should pay 2-4% on the money that you have save in the account. It's not a lot of money-unless you have a million dollars in that account-but it is a start, and it is money making money.

Next, invest in Money Market Funds. This can often be done through your bank. These funds have higher interest payouts than typical saving accounts, but they work much the same way. These are short term investments, so your money won't be tied up for a long period of time-but again, it is money making money.

Certificates of Deposit are also sound investments with no risk. The interest rates CD's are typically higher than those of savings accounts or Money Market Funds.

You can select the duration of your investment, and interest is paid regularly until the CD reaches maturity. CD's can be purchased at your bank, and your bank will insure them against loss. When the CD reaches maturity, you receive your original investment, plus the interest that the CD has earned.

If you are just starting out, one or all of these three types of investments is the best starting point. Again, this will allow your money to start making money for you while you learn about investing in other places.

Remember my blog was created for new investor(basic information) not for the advance investors, but I certainly welcome any comments & suggestions.

Happy investing....stay tuned for more

Investing Basics-What Are Your Investment Goals

2007-02-24T22:10:00.000-05:00

You know most people I know are nervous about the stock market, and may not know anything about the stock market. I was just like that, but my hubby is an independent agent for a financial company, so I am not as nervous about trading online as before because he's teaching me. So, I decided to create some basic information for the nervous first timers, and those who are not sure. I suggest you read my first article: "Is Trading Online For You?" Click here!

When it comes to investing, many first time investors want to jump right in with both feet. Unfortunately, very few of those investors are successful. Investing in anything requires some degree of skill. It is important to remember that few investments are a sure thing-there is the risk of losing your money!

Before you jump right in, it is better to not only find out more about investing and how it all works, but also to determine what your goals are. What do you hope to achieve with your investments? Will you be funding a college education? Buying a home? Retiring? Before you invest a single penny, really think about what you hope to achieve with that investment. Knowing what your goal is will help you make smarter investment decisions along the way!

Too often, people invest money with dreams of becoming rich overnight. This is possible-but it is also rare. It is usually a very bad idea to start investing with hopes of becoming rich overnight. It is safer to invest your money in such a way that it will grow slowly over time, and be used for retirement or a child's education. However, if your investment goal is to get rich quick, you should learn as much about high-yield, short term investing as you possibly can before you invest.

You should strongly consider talking to a financial planner before making any investments. Your Financial planner can help you determine what type of investing you must do to reach the financial goals that you have set. He or she can give you realistic information as to what kind of returns you can expect and how long it will take to reach your specific goals.

Again, remember that investing requires more than calling a broker and telling them that you want to buy stocks or bonds. It takes a certain amount of research and knowledge about the market if you hope to invest successfully.

Stay tune for more.....

Happy investing

Determining Where You will Invest

2007-02-11T21:10:00.000-05:00

Hi...Here's another interesting tip. Don't know if you ever thought about this question, maybe its something for you to consider. Read on.....

There are several different types of investments, and there are many factors in determining where you should invest your funds.

Of course, determining where you will invest begins with researching the various available types of investments, determining your risk tolerance, and determining your investment style-along with your financial goals.

If you were going to purchase a new car, you would do quite a bit of research before making a final decision and a purchase. You would never consider purchasing a car that you had not fully looked over and taken for a test drive. Investing works much the same way.

You will of course learn as much about the investment possible, and you would want to see how past investor have done as well. It's common sense!

Learning about the stock market and investments takes a lot of time...but it is time well spent. There are numerous books and websites on the topic, you can even take college level course on the topic-which is what stock brokers do. With access to the Internet, you can actually play the stock market-with fake money-to get a feel for how it works.

You can make pretend investments, and see how they do. Do a search with any search engine (Google or Yahoo)for "stock market games" or "stock market simulations". This a great way to start learning about investing in the stock market.

Other types of investments-outside of the stock market-do not have simulators. You must learn about those types of investments the hard way-reading.

As a potential investor, you should read anything you can get your hand on about investing...but start with the beginning investment books and website first. Otherwise, you will quickly find that you are lost.

Finally speak with a financial planner. Tell them your goals and ask them for their suggestions-this what they do! A good financial planner can easily help you determine where to invest your funds, and help you set up a plan to reach all of your financial goals. Many will even teach you about investing along the way-make sure you pay attention to what they are telling you!

Stay tune for more.....Happy investing.

PS: Leave me a comment let me know what you think

How to Determine Your Risk Tolerance!

2007-02-09T00:03:00.000-05:00

Each individual has a risk tolerance that should not be ignored. Any good stock broker or financial planner knows this, and they should make the effort to help you determine what your risk tolerance is. Then they should work with you to find investments that do not exceed your risk tolerance.

Determining one's risk tolerance involves several different things. First, you need to know how much money you have to invest, and what your investment and financial goals are.

For example, if you plan to retire in ten years, and you've saved no money towards that end, you need to have a high risk tolerance-because you will need to do some aggressive-risky-investing in order to reach your financial goal.

On the other hand, if you are in your twenties and you want to start investing for yur retirement, your risk tolerance will be low. You can afford to watch your money grow slowly over time.

Realize of course, that your need for a high risk tolerance or your need for a low risk tolerance really has no bearing on how you feel about risk. Again, there is a lot in determining your tolerance. For example, if you invested in the stock market and you watched the movement of that stock daily and saw that it was dropping slightly, what would you do?

Would you sell out or would you let your money ride? If you have a low tolerance for risk, you would want to sell out....if you have a high tolerance, you would let your money ride and see what happens. This is not based on what your financial goals are. This tolerance is based on how you feel about your money!

so, a good financial planner or stock broker should help you determine the level of risk that you are comfortable with, and help you choose your investments accordingly. Your risk tolerance should be based on what your financial goals are and how you feel about the possibility of losing your money. It's all tied together.

Other links of interest:

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Choosing a Broker that's Right for You!

2007-02-07T16:34:00.000-05:00

Hi, Welcome to my Online Trading Blog. I created this blog for anyone who are nervous about the stock market as I was, now I am not because my hubby is teaching me about the stock market. And now we created an investment club (we meaning my family) more about that later. Here is a few tips on choosing the right broker.

Depending on the type of investing that you plan to do, you need to hire a broker to handle your investments for you. Brokers work for brokerage houses and have the ability to buy and sell stock on the stock exchange. You may wonder if you really need a broker. The answer is Yes. If you intend to buy or sell stocks on the stock exchange, you must have a broker.

Stockbrokers are required to pass two different tests in order to obtain their license. These tests are very difficult, and most brokers have a background in business or finance, with a Bachelors or Masters Degree.

It is very important to understand the difference between broker and a stock market analyst. An Analyst literally analyzes the stock market, and predicts what it will or will not do, or how specific stocks will perform. A stock broker is only there to follow your instructions to either buy or sell stock....not to analyze stocks.

Brokers earn their money from commission on sales in most cases. When you instruct your broker to buy or sell a stock, they earn a set percentage of transaction. Many brokers chage a flat 'per transaction' fee. See this company.

There are two types of brokers: Full Service Brokers and Discount Brokers. Full Service Brokers can usually offer more types of investments, may provide you with investment advice, and is usually paid in commissions.

Discount Brokers:
Accutrade-online trading of stocks, options, mutual funds & bonds
Scottrade-Discount stock brokerage
TDWaterhouse-online trading, mutual funds, option & bonds.

Full Service Brokers:
UniTrust Financial Services-financial services, investments brokerage, insurance & retirement planning
Edward Jones-offers individalized service with risk level based on each person needs and goals. Serves US, Canada & UK. (This is to give an idea the difference between a discount and full service brokers)

Discount Brokers typically do not offer any advice and do no research-they just do as you ask them to do, without the bells and whistles. So, the biggest decision you must make when it come to brokers is whether you want a full service broker or a discount broker.

If you are new to investing, you may need to go with a full service broker to ensure that you are making wise investments. They can offer you the skill that you lack at this point. However, if you are already knowledgeable about the stock market, all you really need is a discount broker to make your trades for you.

Stay tune for more......Happy investing

PS: I invite you to leave your comment, let me know what you think.

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Is Trading Online for You?

2007-02-05T23:39:00.000-05:00

I think you have to ask yourself this question and answer it honestly, Is Trading Online for You? Maybe this article may help you. Read on...

The invention of the internet has brought about many changes in the way that we conduct our lives and our personal business. We can pay our bills online, shop online, bank online, and even date online.

We can even buy and sell stocks online. Traders love having the ability to look at their accounts whenever they want to, and brokers like having the ability to take orders over the internet, as opposed to the telephone.

Most brokers and brokerage houses now offer online trading to their clients. Another great thing about trading online is that fees and commissions are often lower. While online trading is great, there are some drawbacks.

If you are new to investing, having the ability to actually speak with a broker can be quite beneficial. If you aren't stock market savvy, online trading may be dangerous thing for you. If this is the case, make sure that you learn as much as you can about trading stocks before you start trading online. Learn how to make a living by trading.

You should also be aware that if you don't have a computer with internet access attached to you. You won't always have the ability to get online to make a trade. You need to be sure that you can call and speak with a broker if this is the case, using the online broker. This is true whether you are an advanced trader or a beginner. If you want to learn more, click here now!

It is also a good idea to go with an online brokerage company that has been around for a while. You won't find one that has been in business for 50 years of course, but you can find a company that has been in business that long and now offers online trading.

Again, online trading is a beautiful thing-but it isn't for everyone. Think carefully before you decide to do your trading online, and make sure that you really know what you are doing.

Happy Investing