Is it right that playing stocks can be a source of daily income? Investors may have a perception that playing stocks can be used to support their family needs beside as an investment. Playing stocks can indeed be used as the main career with a specific reason.
A stock price index that rises continuously from year to year can be used as a place to invest. If the stock rises up to 20 percent per year, then investors will enjoy the investment returns of about 10 percent and about 10 percent is used for daily life. Then, how to can get these benefits? There are several standards that must be used or considered by the investors so they can meet their daily lives with playing stocks.
The risk of stock investment
First, it must be realized that playing shares have a pretty big risk. For those of you who have not mastered the stock market should begin with small caps stock. The share prices on the Stock Exchange are fluctuating, it could go up or down. Therefore, investors should be very careful in playing stocks. Knowing when to buy and when to sell.
Not greedy Second, when playing stocks, investors do not need to be greedy and emotional. That is, investors do not need to seek profits or capital gains that are quite high. When getting profit of 20 percent to 25 percent, investor should sell shares directly. If the stock falls back, then conducting to buy back. Investors do not need to wait until gaining a high profit, for example up to 100 percent, due to the great benefit is usually required a long-term game.
After selling the shares mentioned above, then move to the stock who seems haven’t rose yet. If the new shares bought have risen about 25 percent, investors should get out of the stock. The second perception is also giving the sense that investors should be consistent with the method used on the large of profit percentage.
Third, investors should not invest very large money in fluctuating stock or try with penny stock picks. Usually, a fluctuated stock has been managed by very smart investors. That means, investors should conduct an investigation and understanding about the fluctuated stocks.
Detailed information Fourth, investors should have complete information on all shares held and traded. Investors must be willing to ask questions and read the news from newspapers or from the expert’s analysis in which investor making transactions. More complete information will makes the investor easy to make a decision.
For information, investors should much discuss about the stock to the experts who analyze stocks. Investors should not rely on information that is very simple. Information of the stocks can be found from newspapers or electronic media.
Fifth, the investors must have a method of analysis so that investors can obtain the expected profit. Investors can not use a long-term investment method because it can’t be used to meets the daily needs. They should use fundamental approaches and technical approaches to analyze the market. Both of these methods must be used in order to obtain the expected profit.
Sixth, investors should use term known as 4C, which is cool, calm, confident, and consistent. Thus we will have a good planning in investing and getting a consistent profit so we can use it as our fixed income.
Investing is a great way to make extra money. You do not need to invest a lot of money, you just need to invest smart. Investing on penny stock is one way to do it. Just be careful where you get the info. There are a lot of website that giving you stock pick and more in detail information about small cap stocks just watch out, but personally I know it does work and it makes you money. Let me know if you have any question.