I have working in the financial sector for 8 years now. Having worked in investment company and also worked as a broker, this allows me to gain a lot of knowledge in the financial world.
But the best learning experience actually comes from a 50 years old secretary in one of my previous firm. Her stock dividend alone is $20,000 a year, to her this is her tour package fund. She will use this amount of her dividend to travel to Europe and Australia.
So I ask her what is her investment strategy. She said buy blue chip stocks in market downturn and wait patiently. Then she will list down the buying price of all her blue chip stocks, all of them are in super low price. When blue chip stocks make money, they will pay out good dividend. And good companies will increase their dividend payout year after year.
Recently I had heard some of my friends saying that they will not invest in stocks anymore. It seems like they have lost hope on stock investment. Then they will lose the biggest money making opportunity of their life time.
Many people do not know how stock investment can make one to become a millionaire. The Investors, who have the required discipline for a long time investment, will surely make their million dollars from small cap investment.
There are minor, penny and blue chips stocks, for investors to trade on short, medium or long time. Minor stocks are those stocks which are less than one dollar, below penny stocks; these are Chinese companies listed in American Stocks Exchange.
The plan is applicable to any type of stock. But it is known that small cap stocks usually yields and double profits, than the penny or blue chip stocks within short time.
For any one to make the million dollars; the need to invest on small cap is necessary and such Investor must hold his initial quantity of stock for about 10 to 15 years to grow, provided the company remains in operation. The shares/money will continue to rollover through the annual bonus shares benefit from the company.
Buying stock and shares can be difficult for experienced players on the stock market, and for novices it can be downright scary. There are tips everywhere, such as those from friends, the Internet and newspapers. There are so many contradicting opinions, not to mention mind-numbing figures that seem to lack any logic. Not all stocks are the same, some have more risk involved than others, some will make a profit over the long term, some are better as short term investments. There’s defensive stocks, income stocks, blue chip stocks, inactive stocks, the list just continues on and on… So, how can you work out what stocks to buy, and which to ignore? In the following paragraphs there are a few tips to help you out in making wise choices and minimizing the risks with your investments.
Be Wary of ‘Tips’
Firstly, if you are new to the market, there will be people out there who claim to be experts and will offer you ‘tips’ of companies that are about to make shareholders a big payoff. However, how does this person know this, where did they get the information from, do they have a history of the market and investing, do they actually know what they are saying, or is it just a hunch? Be very careful on who you take your tips from. Just because you’re hairdresser’s cousin has a company and they say a certain stock is a good thing doesn’t really mean much, if anything. Be questioning and wary of the advice you take, as if you lose money, it is your fault and no one else’s.