Tips And Tricks for the Young Investor: Stockpick Whiz Kid
NEW YORK ( MainStreet) For any young or new investor it is very hard to learn the gist of the stock market and start making money right away. Learning different techniques and having experience in the field will only improve your performance financially. There are many different tips and tricks that can be applied to make your investing experience a lot more pleasurable and your portfolio a lot larger!
On a very basic level, it is import that you understand how to put an order in for a stock or security. If you were to buy a stock on the NYSE, it may not be in your best interest to click the "buy" button and type in as many shares as you are looking to purchase. When acquiring stock, here is some information you should look out for:
- 1. Action: (Buy) or (Sell)
- 2. Quantity: How many shares you would like to buy of each stock
- 3. Stock: What is the stock symbol and company that you would like to purchase.
- 4. Order Type: (Market) meaning you would purchase the stock at its current price or (Limit) which would mean that you would be putting in an exact price at which you would like to purchase the stock.
- 5. SP. INST.: (AON) which says that if you order a specific number of shares, you will receive "all or nothing" of the shares or (FOK) "fill or kill" meaning that the transaction should be executed immediately with the full number of shares or not done at all.
There are many different situations and techniques of trading the stock market.
Let's say that you have done a lot of research and decided that you were going to purchase Alcoa Inc. (AA) at a share price of $8.00 and had $4,000 to invest. You are going to hold this stock for a couple months and believe that after the company's next quarterly earnings report, the stock is going to pop. There are a couple ways that you could purchase your stock.
You could purchase the stock immediately, taking the chance of the stock going down until the company's next quarterly earning, or you could wait and buy the stock right before the quarterly earning - yet take the chance of the stock going way up. The solution to this is to buy small increments throughout the next couple of months receiving the median stock price and securing a stable position. In most investment situations, this technique is the way to go.
If you are one who wants to start trading the stock market on hourly increments, there are many tricks that you can observe through a stock and the trading hours in which you find it volatile.