So you’re looking to do some on line stock trading? Maybe not a full time, read all the articles, watch all the tv specials, and read all the books kind of investor but you know that your retirement or your children’s college tuition may depend on it. You have to take some important personal financial steps before you can start investing. Just like everything financial, different people have different ideas and you must take in a couple of people’s opinions before making a decision so here’s my list
1.) Pay off your credit cards- Credit card interest payments will eat up your investment profits so you must pay those off before you do any on line stock trading. If you get nothing out of the rest of the article, get this: Investing in yourself is the safest, most lucrative investment you can make. If your credit card has an interst rate of 20%, paying it off is like investing in a stock that goes up 20%. You would cheer loudly if your stock did that so do it with your credit card.
2.) You must have health insurance- You have no business investing any money if you don’t have health insurance. One hospital stay can put you in debt for life. Health insurance comes before everything. Savings accounts and retirement savings included.
3.) Disability Insurance- Disability insurance is cheap and will protect you and your future investments should you become disabled in some way. If you have money to invest, you most likely have the small amount of money that will allow you to take out a disability policy. Again, no on line stock trading allowed if you don’t have disability insurance.
4.) Do your research- Do you buy a car by reading the name of it and the price? How about a house? Most of us study green bean brands at the grocery store the same way we buy a home so why would you buy on inpulse or even worse, give your money to a financial advisor without knowing what you’re invested in?
EXTRA TIP: Only invest money that you can lose- I know, that sounds less than uplifting but if you have money that you must have within 5 years, it belongs in a savings account, certificate of deposit or maybe a low risk bond. Money for the stock market will make you money most of the time (if you invest it correctly) but every investor has endured the big loss and you will too.
Finally, if I had to pick one big mission statement for my blog, it would be “Convincing the world that money isn’t made quickly or without hard work.” If you are looking to make a quick buck, try the lottery because the stock market is no place for you. On line stock trading isn’t going to make you fast money.
Now, read more of my articles and get to work finding the perfect stocks for you. If you have questions, post a comment or e-mail us. We’ll help you!