How Can Wise Investments in the Stock Market Help You Retire?

Written by Becky Wilcox

The stock market is the home for wise investors. With the right companies, your money will grow over time with inflation. When you keep your money in the bank, it stays frozen. Certain stocks pay dividends and you will share the spoils of their success. You work hard for your money. At some point, you want your money to work hard for you. Analyst ratings today can be very accurate, so stay on top of the news before you make your financial decisions.

The Importance of Planning Early for Your Retirement

Thinking about your retirement early is one of the most important preparations you can make. As soon as you enter the workforce, you should be thinking about your retirement. When you are young, time moves slow. As you get older, time is on steroids. It doesn’t take much to get the ball rolling to establish your nest egg. Saving ten percent of your income adds up over the years. Doing your research online and talking to professionals can give you some confidence. Your retirement years can be the best years of your life if you take the right preliminary steps. But remember, it is never too late to get your affairs in order.

World News and the Stock Market

The stock market flows with the tone of the news. Whatever happens in the world reflects on the market. The thing is, the whole market does not react the same. Certain news can make one sector do good while that same news makes another sector do bad. COVID-19 is the big topic dominating the news right now. This news is affecting the entertainment sector in a negative way. At the same time, biomedical stocks are thriving right now.

It is a good idea to stay on top of current events when making your decisions regarding the market. If you are in the market for the long run, certain news events shouldn’t make you panic. As long as you invest in the right companies, they should stand the test of time.

Technical Analysis and the Stock Market

One of the best ways to study the stock market is through technical analysis. The way you do this is by studying charts of the chosen stock’s historical performance. There are many websites that give you this information on a daily basis. By studying past trends, you can make predictions of how the stock should perform in the future.

Technical analysis indicator tools can help you spot trends, so you can make good investments. These tools are add-ons that you can put on your chart reading software. Here are the names of some of the most popular indicators:

Bollinger Bands

MACD (moving average convergence divergence)

Aroon Indicator

Stochastic Oscillator

Relative Strength Index

How to Read a Stock Quote

When you do research on a stock, it is important to understand the information that is presented to you. At first glance, you will receive data that can give you a rough idea if you should deal with the stock or not. Here is a list of important information to look out for:

Market Cap: The market cap is the number of shares the stock has available multiplied by the price of the stock. The sum of this equation will tell you what the company is worth.

Average Volume: The average volume tells you how much activity the stock has on a daily basis.

Day Range: The day range tells you the lowest price and the highest price the stock hit within that day.

52 Week Range: The 52-week range tells you the lowest price and the highest price the stock hit within a year’s period.

Shares Outstanding: The shares outstanding tells you how many stocks the company has.

Public Float: The public float tells you how many share the company has available to the public.

EPS: This stands for earnings per share. The EPS tells you the profit on each stock.

P/E Ratio: The P/E ratio tells you the company’s share price compared to the earnings per share.

So, should you invest in stocks to prepare for your retirement? The answer is yes. The important thing to do is your research. With proper preparation, stock market investing can be very profitable.

Advice for Retirees Thinking of Trying Their Hand at Online Trading

Written by Kim Dawkins

If you do an internet search for online brokers, the number of search results returned is staggering. Choosing the best broker from those many options can be a daunting task. In order to separate reputable brokers from those with shady dealings, and strong ones from the weak, we have a series of steps to follow. Read on to learn more.

What To Watch Out For

1. Cost

The first on the list of important considerations is cost. The bottom line is high fees and commissions can lead to decreased returns. Keep in mind that different online brokers charge different fees for trading options, bonds, CDs, mutual funds and other financial markets. When trading mutual funds and ETFs, take into account the expense ratio. And watch out for the possibility of account service fees, maintenance fees, inactivity fees and other similar costs.

2. Research and Education Tools

Beginner investors can benefit from research and education tools provided by online brokers. These resources comprise a wide range of tutorials, reports, and other information. They help to make informed decisions about online trading and investment. There are several online investment companies out there like CMC Markets that provide in-depth research and education tools.

3. Customer Service

What if you need assistance in placing trades? What happens if there is a problem with the trading platform after placing your order? What if you have other questions? Quality, timely customer service is important when you have issues you need addressed. Online brokers with good customer service can be important in your online trading endeavors.

How To Pick A Good Online Broker

Picking the right online broker comes down to your preferences and priorities. Some online investors are willing to pay higher fees and commissions for a state-of-the-art platform while other take cost as the determining factor. Here are some areas to consider when picking your online broker:

1. Pay attention to account minimums.

The amount you want to invest in various financial markets may slim down your choices. A good online broker allows you to open an account with an amount you are comfortable with. Don’t get pressured into investing more than you are able and willing to.

2. Choose brokers with lower fees.

You won’t be able to avoid account fees completely, but with some careful research you can minimize them. Many online brokers charge a fee for closing your account or transferring out funds. If you are transferring funds to another broker, you may consider companies that reimburse some transfer fees.

3. Consider your trading style and technology needs.

Choose online brokers that offer the investment opportunities you want at the most reasonable price. If you are a beginner online trader, you may not plan to trade frequently. If this is the case, choose online brokers that don’t charge inactivity fees. Consider companies that offer technological tools to help make your online trading endeavors easier.

4. Look at ratings and customer service.

Take a close look at the ratings and customer service if you want to pick a good online broker. There are several review sites that offer comprehensive broker ratings that are objective and based on factors that matter most to consumers. These factors include, but are not limited to customer service, commissions, account minimums and fees.

Online Trading Scams

1. Hacking into your trading accounts

There are scammers out there with knowledge and technology to hack into your trading accounts by stealing your username and password. Once they have control of your account, they pretend to be you, able to make trades without your knowledge and generate huge profit for themselves. Secure password selection and management is something we all need to adopt as a part of doing business on line.

2. Email hacking

Some scammers may steal your email passwords which they use to access your email. Once they have access to your compromised email account, they might communicate with your broker to create a fake story to show why you need funds released.

How To Avoid Being Scammed

• Ensure your anti-spyware and anti-virus software are up-to-date.

• Use secure passwords that are difficult to guess, ones comprised of a mix of characters, numbers and symbols..

• Avoid using public computers or public Wi-Fi to log in to your accounts.

• Avoid public domain email address when you want to communicate trading instructions.

• Never save log-in details online or disclose them to anyone including your broker.

• Always monitor your online brokerage account.

• Regularly check trade confirmations provided by your online brokerage firm.