Starting Your Own Share Portfolio
The dream of every investor is to have a profitable share portfolio. Before building your portfolio, you must decide what are your goals and final objectives. Basically you can go three ways – Long Term Blue Chip Investment – Short Term Speculative Stock – Or A Combination Of Both.
The First Route involves buying shares at what your advice and gut feeling tells you is a good price, putting them away much the same as an investment property. Over time Blue Chip shares have nearly always given a better return than property.
The Second Route involves buying Speculative stock such as Penny Stock, Futures, Short Trading, Options and a number of other types. These stocks are very risky, but if you can get the right advice and perhaps a lot of luck they can be very lucrative and rewarding.
The Third Option gives you the option of relying on growth of your Blue Chips, while hopefully making some good short term profits on your other Stocks. The level of risk you are prepared to take will decide how your portfolio is built, and the amount of time that must be spent monitoring it. You will need some advice, but you must be prepared to make some timely judgments yourself. With online trading you have never had such control over your destiny than you ever had before. You can monitor the socks yourself, and you must be prepared to spend this time or you may as well pay someone else to do your trading for you – and chances are they wont make much better decisions than you do yourself once you have been in the game for a while and know what to look for. Your Blue Chip Stocks main aim is capital growth. Your other shares, if you invest in any can have some capital growth if held long enough, but they are more purchased for quick profit (Or Loss) and quick turnaround.
Your personal finances also to a large extent decide which part of the market you can engage in. The Old Stocks or Blue Chips are extremely expensive, so you have to have a lot of money behind you to get a decent size portfolio. But you can if you decide buy them in the smallest packages they are sold in and slowly build up your portfolio, but as you may realise it is going to take you a long time to get any size portfolio. The speculative stocks give the greatest chance of getting ahead at pace – but you must realise you can also lose everything quickly too.
If you are going to do all your share trading online you must be prepared to check all your share at weekly intervals at the minimum, some stocks need to be watched daily. But for a lot of investors they get an adrenalin rush every day watching their shares go up and down(Preferably the former). If you are not prepared or do not have the time, you should look at using a broker. You will have to pay him a retainer, but you have to work out how much you may have lost not using a broker, if you don’t or cant watch the stocks yourself. The broker will have to find out if you are prepared to take risks or not. If you are not prepared to take any risks at all your portfolio will grow at a very slow rate, but if that is what you want then that is what works for you. If you are prepared to take some risk such as losing money for a while, you can diversify your portfolio to a greater degree.
So go ahead enjoy yourself, but don’t get caught up on too many large upswings because if you heard about them from your taxi driver – usually by then you have missed the boat and are getting in at the top end and there are never stocks that go up forever. If you are given advice on a new stock being released by a reputable company, they usually are a nice quick way to make some profit. Your stock have to be watched vigilantly. If you have stock in say Silver – read and keep watch of news reports of revolutions in the big silver producing nations which could alter the value of silver stocks. Or if they found a new massive silver source, then soon the value of silver would decrease. Such things like this has to be watched for to give you the best chance of maximising your profits (and minimising your losses).
Processing your request, Please wait....
