Putting Stocks In Play And Building A Personal Portfolio
Stocks in Play
If you have always dreamed about playing the stock market and earning a nice little side income, there are several ways that you can put stocks in play, and make money for your own needs. Even though you might have been hearing about a recent stock market decline, and you might think that nobody is even thinking about investing in the stock market as a result of shaky economic times, these are just rumors that are not altogether true.
The best thing to do is to look at your own income. You should then determine what your goals are and whether you can afford to invest. Do you have an extra few hundred dollars around at the end of the month that you would like to spend on investing? Do you have as little as $20 or $75 a month?
Even if you only have a little bit of money, you can make some money in the market. Just because your neighbor does not have disposable income to put stocks in play does not mean that you should let that be of concern to you. Because so many people have been discouraged from entering the market, this means that there are more opportunities for you. There is less competition and less people around to snatch up good deals from you.
Ricky or Conservative Stocks in Play?
There are two ways that you can play the stock market. You can put stocks in play conservatively or you can take a little risk. It is not wise to take a lot of risk. That is a quick way to lose your entire investment and cause yourself emotional grief as well.
When you play conservatively, this means that you only invest in blue chip stocks. Blue chip stocks are stocks that are major company stocks. These are companies that have been around for 20 or 30 years, or companies that are very large fortune 500 companies with a lucrative income. Make sure that the blue chip companies that you invest in are solid companies that have good potential for growth. For example, if you want to invest in a car company, it would be wise to look at their future plans. Are they planning to upgrade newer car models to be more environmentally friendly, and more efficient on gas? Are they improving safety features to keep up with the times and their competition?
When you are willing to play the market with some risk, you should have a diverse portfolio with blue chip stocks, stocks that are moderately risky, and stocks that are high risk but with a high payoff. You should not split your portfolio into three equal parts. A 50%, 35%, 15% split is probably the most ideal. Additionally, until you get more experience putting stocks in play, you should have a professional help you with portfolio diversification.
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