Do you have kids? Do you have plans for your kids to go to college one day? Have you looked at how much college is going to cost you for just one kid? College is a big investment, but it is a good one. If you begin planning for this huge expense when your kids are young, you won't take much of a hit when the day comes that your teen packs his or her bags and heads off to start a new life at school. This blog will provide you with several ideas and tips that can help you find ways to plan for your kids' college tuition.
With how easy it is these days to access the internet, anyone and everyone can trade stocks with the hope of striking it rich in the near future. However, it is also just as easy to trade yourself into debt. First time investors make many common mistakes that are detrimental in the long run. Below is a list of the most common pitfalls to avoid when buying and trading stocks for the first time.
Don't Go All In
You might think you are an expert in stock investing because you have seen a few movies and have heard the popular quote of "buy low, sell high", but being a first time investor, it is hard to know what high and low are when different stocks play by different rules. Before you decide to dive knee deep in the trading market, research the basic metrics and ratios that different stocks are measured by. You have to understand how different metrics and ratios are calculated and what weaknesses they have. Once you think you have enough information to start to trade on your own, you can use a stock simulator to see how well you will do on your own without losing any of your real money.
Forget the Penny Stocks
Penny stocks are so tempting to dive into when you are first starting out. They are the cheapest and promise the most payout in a short amount of time. Trading penny stocks can definitely get you more shares than any other stocks. However, what penny stocks promise you are nowhere in comparison to the possible problems you will face by investing in them. For instance, penny stocks can be manipulated and can crash in just a moments notice, leaving your penniless.
Don't Depend on the News
One of the most common mistakes that first time investors make is following the news to try to predict what new product will be the most popular. For example, if a news outlet suggests that a new product will be the biggest technological revolution in a long time, you are going to be tempted to jump right in with that investment. Sadly, news outlets can get it wrong. There is no telling if that product will make it big or not. Instead of depending on news outlets, research and study the trends of the trade. Do your own research and depend on your own observations for the best outcome.
Investing in and trading stocks can be fun and very profitable, if you know what you are doing. Jumping in head first for your first time will cost you time and money. Avoid making the common mistakes that most first time investors make and come out on top. You may also want to consider hiring an investment planner to help you make good investments.
Share6 April 2016
