Online investing has increased in popularity over the past couple of years due to the cost effectiveness and convenience of trading online. Don’t be Stubborn – If you’ve taken a position in a stock and it just won’t run like you expected it to, don’t be stubborn and hold on to it thinking it will eventually turn around. If a stock price is falling, there might be a good reason for it, and you can always sell and re-enter when the price has fallen even farther. Since there are a limited number of shares available, the law of supply and demand can work heavily in your favor if he company releases some good news and more investors become interested in the stock. This means you agree to buy or sell the stock at a specific price, rather than just the market price.
For us older people looking to live on Social Security and past investments, slow and steady sets the pace. To succeed in investing or trading in the stock market, you have to read, practice and read more. You can read a book once and think you understand it. Then go into the market and forget everything you read in that one book. When it comes to stock market trading, investing or speculating books, there are thousands of them.
Over the years, I have read countless stock market books and can only think of a handful of them that have been really helpful. There are no get-rich-quick stock market type books listed here, because that doesn’t really exist, unless you get very lucky. The way you get rich in the stock market is by learning and learning more, and staying in the game.
Since the stock market does not always go up, these books will teach you how to profit during bear markets or stock market corrections. You will find yourself referring back to them again to make sure you understand each concept as you trade and invest in the stock market daily. The way the stock market fluctuates is enough to keep anyone awake at night wondering about their 401k plans, retirement and their stock portfolios. If a stock has an uncommonly high yield for that industry, there is usually a reason.
Finding a good dividend paying stock is not just finding the highest yields, since that can be very deceiving. And the reason could be that the stock price recently fell dramatically and sooner than later, the dividend will be cut or eliminated. Another benefit of good dividend paying stocks is that they are usually older more established companies and these companies will sometimes do a stock split, which means you end up with more stocks over time accumulating more dividends. Investing in companies that pay dividends and reinvesting those dividends along with stock splits can add up nicely. Option trading can be very profitable and they can be used to hedge stock market volatility risks.