Start Your Investing Year Off Properly

Happy New Year folks.

The party favors are cleaned up… the hangovers diminished. Now let’s make some money!

There’s a lot of noise in the world today. Everyone — from the mainstream media to the big brokers on Wall Street — wants to tell you what to do with your finances.

But my No. 1 priority is to give you the knowledge and power to make the best decision for your bottom line.

Successful investing starts with a handful of basic tenets — which is why I created this guide for you.

It’s set you up for the most gains and help you minimize big losses all throughout 2020.

First up….

How to Choose the Right Broker

Making money with stocks is about more than just buying and selling at the best prices.

There’s another side to investing that most people overlook… Choosing your broker.

Don’t simply choose the one with the lowest price. You may discover it is worth paying a little more. When choosing your broker here are a few questions you may want to ask before making your decision:

  • Do they have 24/7 customer service?
  • Are the broker’s trading accounts insured by the Securities Investor Protection Corp. (SIPC)?
  • How is the frequency of your trading habits going to affect your account and your costs?
  • How much will it cost to place an order with a live broker?
  • How long will it take for your order to be executed?
  • Can you earn interest on cash that is not invested?
  • How much independent research will you have access to?
  • How easy is it to trade OTC or penny stocks?

Choose the broker that answers these questions to your satisfaction best.

Stocks 101

A stock is a type of security that represents ownership of a company.

Ownership is determined by the number of shares a person, or shareholder, has compared with the number of shares available. Owning a company’s stock gives the holder a claim to a part of the company’s assets and earnings.

For example, let’s say a “company” is divided up into 10 shares. You decide to purchase one. This would represent a 10% ownership in the company.

Types of Stock

There are two main types of stock: common and preferred.

Common stock gives the shareholder the right to vote in shareholder meetings and collect dividends.

Preferred stockholders do not have the right to vote but do have a higher claim to assets and earnings. They get dividends first and have higher priority if the company goes bankrupt — they get paid first.

While preferred shares have an added layer of security, common stocks historically outperform them.

How Do Stocks Trade?

Most stocks are traded on exchanges. Exchanges can be a physical place with a trading floor or virtual.

The purpose of an exchange is to enable the transactions between buyers and sellers while reducing risk.

NYSE

You are probably familiar with some of the big-name exchanges like the Nasdaq and NYSE.

The NYSE — or “Big Board” — was created in 1792 by the signing of the Buttonwood Agreement in New York City by stockbrokers and merchants. It has stocks like Bank of America, Ford and Coca-Cola.

The Nasdaq is an over-the-counter or virtual exchange that holds a lot of technology companies. This includes companies like Apple, Comcast and Intel.

What Makes Stock Price Change?

The simplest answer: Supply and demand.

If there is a large supply and not a lot of buyers, the stock’s price is pushed lower. If there are a lot of buyers but not a lot of stock to sell, the price goes up.

The main theory behind the price movement of a stock is that it indicates how much people feel a company is worth. But a company’s value and stock price are not one in the same.

No one knows for sure why stocks go up and stocks go down. Different investors have different metrics they look at.

Is There a Stock Store?

Not exactly…

Many everyday investors use a brokerage to facilitate the buying and selling of stock.

There are full-service brokers where you can talk with someone about your trades. You can also use a discount broker where you can go to a website and place the trades yourself.

That said, some companies allow you to purchase stock directly from them through dividend reinvestment plans (DRIPs) or direct investment plans (DIPs).

Which are a great way to compound your wealth through stocks.

Getting Started on Your Path to Complete Independence

My goal at here at Tech Profits Daily and Seven Figure Publishing is to deliver you financial independence… on your terms.

With our team of top-notch editors, we deliver life-changing opportunities straight to your inbox every day. Whether you are just starting out — or a seasoned pro — we have something for you.

And now — you have all the basics you need to get started.

For Technology Profits Daily,

ray

Ray Blanco
Chief Technology Expert, Technology Profits Daily

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Ray Blanco

Ray Blanco is the editor of Technology Profits Confidential as well as Breakthrough Technology Alert, Ray Blanco’s FDA Trader, Penny Pot Profits, and Technology Profits Daily. Ray has been with Seven Figure Publishing since 2010. In 2019, his closed positions in Technology Profits Confidential outperformed the S&P500 by 50%.

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