Tuesday, June 10, 2014

Review of stock online trading::What Does Bid and Ask Mean in Trading Stocks?







Review of stock online trading::What Does Bid and Ask Mean in Trading Stocks?








               Investing               in               the               stock               market               is               worth               the               risk               in               my               opinion,               although               some               say               it's               a               fool's               game.

I               started               investing               in               the               stock               market               when               I               was               making               less               than               $30,000               a               year               more               than               a               decade               ago.

Since               I               was               not               a               high               earner,               I               needed               the               stock               market               to               do               much               of               my               work               for               me.
               Most               people               earning               so               little               have               more               confidence               in               the               lottery.

In               fact,               almost               half               of               people               making               less               than               $30,000               a               year               feel               that               winning               the               lottery               is               their               only               chance               of               becoming               a               millionaire,               according               to               a               Consumer               Federation/Primerica               study.
               Spooked               by               the               ups               and               downs               of               the               stock               market,               some               people               rather               save               cash.

I               know               one               person               who               is               saving               cash               in               a               safety               deposit               box               at               a               bank.

Meanwhile,               my               investments               have               steadily               grown               to               more               than               $100,000               before               age               40.
               Here               are               some               of               the               ways               I               keep               myself               from               being               spooked               by               the               stock               market               so               I               can               become               a               millionaire               by               retirement:
               Know               history               repeats               itself
               The               stock               market,               like               most               things,               has               a               predictable               cycle.

Even               the               unpredictability               is               predictable               if               you               look               at               the               bigger               picture.

Just               as               investing               in               the               stock               market               was               the               "1999               way               of               getting               rich,"               it               will               be               the               way               to               get               rich               in               the               future.

The               S               &               P               500               returned               about               28               percent               return               a               year               for               the               five               years               ending               in               1999               because               it               was               a               bull               market.

People               who               invest               during               the               bear               markets               are               buying               stocks               at               a               discounted               price.
               Diversify               and               then               let               it               fly
               Prudent               investors               do               not               purchase               only               individual               stocks.

Diversification               is               common               sense.

I               buy               a               combination               of               individual               stocks,               different               kinds               of               mutual               funds               or               exchange               traded               funds               (ETFS)               and               bonds.

I               also               like               to               make               before               tax               contributions               into               a               401K               and               after               tax               contributions               into               a               Roth               IRA.

After               making               sure               my               portfolio               contains               a               mix,               I               let               it               fly               (or               hold)               to               harness               the               power               of               time.
               Stay               attentive               but               detached
               Just               as               you               can               be               empathetic               when               your               friends               have               money               problems,               but               not               get               involved               by               loaning               them               money,               you               can               pay               attention               to               your               investments               and               remain               detached.

I               don't               get               emotional               about               investments.

I               check               to               see               if               I               need               to               make               any               adjustments               or               tweaks               and               then               step               back               and               let               my               investments               get               back               to               working               for               me.
               View               financial               news               as               entertainment
               Financial               news               is               about               as               reliable               as               the               weatherman's               report.

I               know               a               woman               who               sold               everything               in               her               401K               when               it               was               at               rock               bottom               a               few               years               ago               because               she               was               spooked               by               media               reports               of               the               "stock               market               crash."               I               knew               she               was               making               a               major               mistake.

It's               entertaining               to               follow               financial               news,               but               I               never               let               it               spook               me               into               making               rash               decisions               to               buy               or               sell               stocks.
               I'm               in               the               driver's               seat
               I               think               I               would               be               nervous               about               stock               investments               if               they               were               being               managed               by               someone               else.

I               always               liked               the               idea               of               the               "individual               investor               revolution,"               that               refers               to               people               who               use               discount               brokerage               accounts               (or               online               trading               websites)               to               invest               on               their               own.

I               can               access               my               stocks               immediately               and               pull               the               buy               or               sell               trigger               if               I               think               it's               prudent               to               do               so.
               Some               people               think               investing               in               the               stock               market               is               only               for               the               Warren               Buffets               of               the               world.

But               that's               just               not               true.

If               you               don't               earn               as               much,               you               don't               need               as               much               to               retire.

I               invest               at               least               10               to               30               percent               of               my               income               in               stocks               and               bonds.

You               don't               need               to               be               a               financial               genius.

I               barely               passed               Algebra               in               high               school,               and               I               never               took               a               finance               class               in               college.

Yet,               for               as               long               as               I've               "played"               the               stock               market,               it's               never               played               me.
               More               from               this               contributor:
               How               To               Pay               Off               Your               Mortgage               Fast
               Keeping               financial               peace               in               my               marriage
The               spending               domino               effect               of               buying               a               house





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