October and November have been hard on the stock market. The chaos in Washington and the markets has left many investors frustrated and frightened. But as October and November draw to a close, these fears are starting to fade as stocks begin to rally. Investors are realizing that there is little benefit to be had shorting stocks during this volatile time. And since the big moves do not last, there is no reason to hold out for the perfect time to buy stock. Here’s how you can get ahead while everyone else is holding their money in the stock market.
– During October and November, the government and many independent agencies release their long-term stock market index outlooks. Through November, there were 10.3 million unemployed individuals unemployed in the U.S. Up nearly 5 thousand from the previous record-high unemployment numbers saw in February; an astounding number of people have either stopped searching for a new job altogether or decided not to look at an index for the fall. In the next two years, the outlook for the stock market will likely revolve largely around factors such as healthcare reform, economic stimulus programs, and interest rates.
– If you’re looking to invest in the stock market, focus on your own individual portfolio. Do you have a diversified portfolio with low-risk high-reward stocks? If so, now is the best time to buy! Even if every investment seems hard to find, as long as it doesn’t involve all of your assets, it is still the best time to add some new, high quality stocks to your portfolio.
– Utilize the lowest cost buying and selling stocks possible. In recent years, index funds and mutual funds have made investing easier by allowing you to buy and sell shares at once. These two types of funds typically allow you to increase and decrease your investments very rapidly. Investing this way also helps cut down on your paperwork. For most investors, buying and selling stocks via index funds means writing a single check for all of your purchases. For the savvy investor, this means investing less, not more!
– Use a stock trading information service to stay on top of what’s going on in the stock market. Some investors like the added benefit of getting real time stock trading information through a newsletter or an online site. The problem with many stock trading information sources is that they are usually not updated as much as the mutual funds and index funds that are designed to give you more detailed stock market information. This can leave you guessing about when to buy or sell, and make your portfolio harder to manage. This is why it’s important to stay well-informed regarding the happenings on Wall Street!
– Create smaller stock portfolios for risk-taking. Individual stocks are great if you’re just getting started investing or if you find yourself in a big, broad investment portfolio. However, sometimes these individual stocks are just not right for your portfolio. By creating a few smaller portfolio holdings, you can be sure you know which stocks are performing and which aren’t. Plus, these smaller portfolios give you a bit more freedom to decide how much money to put into your stock market investments.
– Buy a stock market membership. A lot of professional investors like being involved in a formalized, organized way of managing their portfolio. If you have an account at a reputable brokerage firm, look into a full-service stock market membership. Many of these firms offer customized, customizable services to meet the needs of their clients. A full-service brokerage account lets you invest across a variety of asset classes and in many different types of companies – even if you don’t have a lot of cash on hand.
Investing in the stock market can be tricky. If you want to get started investing, consider looking into options that simplify the process for you. Don’t spend all your time researching individual stocks; instead, use a full-service brokerage firm’s stock market investment tools. They will help you understand what factors influence stock prices and what kinds of businesses are best suited for your own particular investing style. Investing smartly and regularly means stock market index funds are the best way to achieve your own financial independence.