Is it worth your time and money to invest in stocks? When it comes to growing your money, it helps to consider various options to maximize profits over the shortest period of time possible. Although investing in stocks involve risks, the returns are quite impressive. It only requires careful attention, conducting research on which areas to invest on, and consult experts who can provide you with professional advice as you take a plunge in the stock market.
If you are still feeling anxious about this investment options, you may want to check out these top reasons why it may be a practical idea to devote some of your funds in this money-making strategy.
1. There are ways to minimize risks.
Unless you are going full on when it comes to your stock investments, then there are more risks that come with it. However, if you are only starting, you can put your money in investments with lower risks, so you can reduce possibility of losing your purchasing power because of inflation. Always remember that while there are risks with investing, the same goes with not even taking a chance at all. Placing all your funds in a savings account that barely grows any interest over time. You run the risk of having insufficient budget for your future, which can be very stressful to anyone. Thus, it is best to start as early as now to expand your wealth through various investment vehicles including the stock market.
2. Diversify your portfolio.
The idea is to choose a mix of both riskier and safer investments, which mitigates the risks linked with inflation. You can also ensure a growth in your portfolio with diverse investments regardless of the market downturn and fluctuations. Keep in mind that although stocks are riskier than bonds, you can find less risky ones. It may also be worth thinking about the pros and cons of investing on small and large companies before you put your money in these investment options. After all, there is always a mix of investments suitable to your risk tolerance and goals.
3. Decide on the platform to use.
For beginners or for the sake of your convenience, you may consider getting an online trading platform to use for investing. Some options available include the following:
a. TD Ameritrade
This is a comprehensive online broker that offers thousands of mutual funds and the finest research tools to help you learn the ropes in investing. There is no minimum amount required for your account. Moreover, it costs $9.99 per online trade for stocks and ETFs, and for options, it is priced at $9.99 plus $0.75 per contract.
b. E Trade
This platform is among the highly rated options for mobile trading. There are research tools available, which educate all investors who may be beginners or professionals. Pricing for online trading of stocks and ETFs is at $9.99. As for options, it costs $9.99 plus $0.75 for each contract.
c. Charles Schwab
You can find thousands of mutual funds to invest on, which can increase your wealth over time. Moreover, there are several branches situated in some areas. However, there is a $1000 minimum account required for investors. As for the fee per trade online, it costs $8.95 for stocks and ETFs, and options costs $8.95 + $0.75 a contract.
d. Trade King
A online broker that offers low rates on trades, it is also a full-service platform that gives some perks to new clients. There is a minimum deposit of $3000 required for each investor within 30 days upon opening the account before one can qualify for the $200 cash promo. However, this promo does not include retirement accounts. The cost per trade is $4.95 for stocks and ETFs, and it is $4.95 + $0.65 per contract for options.
4. Work on asset allocation.
This pertains to how your money is divided among several investment options. Remember that the perfect combination of investments gives you better control over portfolio volatility. Have a mix of low and high-risk investments to get better returns.
When investing, it is always a good idea to keep your emotions balanced. Remain calm and do your research well. By doing so, you can eliminate any fears along the way and prevent yourself from making costly mistakes by simply acting based on your emotions or mood swings.