Top Five Reasons to Run Your Investment Account
When I first opened up my own personal investment account, I wondered if I was making the right decision. After learning the ups and downs of the stock market, I am so glad I decided to start! I started running my own IRA, and I have done so well that I decided to open a non-tax sheltered account as well for my vacation fund. Over the years, I have discovered that I actually did better in my self-run accounts than I did in the accounts I had that were run by money managers! I suggest that you start small, and run an account on your own as well.
Here are the top five reasons for you to run your own investment account instead of paying someone to do it for you:
Just as it is a lot cheaper for you to fix your own car, do your own plumbing, and paint for yourself, it is a lot cheaper for you to run your money yourself. Just think about it. If you pay a man for his advice and fees to make trades, you are paying for his fancy chair, office with a view, hot rod car, etc. If you make your investment decisions yourself, you only pay for the trades you make.
In the information technology age we are in right now, you can find all the information you need online to do research for good investments. There are stock idea blogs, investment tools, stock quotes, educational sites, and advice for best investment. Everything you need to be a great investor is at your fingertips, and most of it is free!
It has been found that only 6% of money managers actually do better than the S&P 500 index fund. So by investing in SPY(S&P index fund), you are among the top 94% of investors!
I don’t know if you realized this, but money managers are the ones that move the stock prices! Because they have to deal with large amounts of money, when they sell, the stock goes down. When money managers buy, the stock goes up! You, as a small investor hardly affect the price at all. Take advantage of this fact! All you have to be able to do is buy the stocks that managers are buying after they sell, and sell them after they buy to make money. Use the stochastic charting tool on most charting software to help you know when stocks are overbought or oversold.
Really, who cares more about your money? If you lose money, it hurts you. If they lose your money, they still get paid. You are better off using that sense of responsibility to your advantage. If you care about your money, you are going to do the work necessary to help you keep and grow that money.
My advice is to keep the money that you would pay an investment professional and invest it yourself. You will be much better off.
Use Internet Tools to Time Your Investments
James Cramer says, “Bulls make money, bears make money, but pigs get slaughtered.” It is so true! People many times miss out on huge gains because they see that a stock has made big gains and refuse to sell. They get greedy. When a stock is up more than 20%, it is time for you to sell.
There is a tool (usually located in the chart section of a stock quote) that can help you time your buys and sells. You don’t have to be a genius to use them either.
Fast Stochastic – This tool is designed to let you know when stocks are overbought, or oversold.
How to use the stochastic tool:
1) Do research on a stock you would like to buy. Check financials, overview, opinions about the stock’s future.
2) Pull up a chart on your favorite investment website (I use ) Marketwatch
3) Pull up the interactive chart (On Marketwatch)
4) Go to “Technical Indicators” and click on “Oscillators”
5) Fast Stochastic is one of the indicators.
6) Check this for a few days and wait until the indicator line is near the bottom. (This indicates a time to buy)
7) If the line is near the top, it is a good time to sell, not buy.
If you use this tool, it will help you buy when the stock price is low, and sell when the price is high.
NOTE: This is only a SHORT TERM indicator. The market will fluctuate every week or two.
Which debt solution hurts your credit score the most?
There are many debt solutions that can give you financial freedom. But you get financial freedom at the cost of your credit rating that can be improved over time. The debt help industry has gained popularity, especially after the recession when consumers are facing the problem of managing their debts. Not all consumers fall behind on payments as a result of cash mismanagement. You may also have to face unexpected incidents that can cause your finances to go haywire.
The different debt solutions (e.g debt consolidation, debt settlement, debt management, bankruptcy, etc.) that can restore your financial peace affect your credit rating differently. One of the debt solutions that hurt your credit score the most is bankruptcy. Most of the debtors file Chapter 7 or Chapter 13 bankruptcy. If you file bankruptcy, it gets recorded in your credit report for a period of 7 to 10 years.
How does bankruptcy hurt your credit score and your financial well being?
If you file bankruptcy, it allows you to make a fresh start as far as your finances are concerned, but it has very negative implications too. The disadvantages of filing bankruptcy outnumber the advantages.
• If you are planning to take up a job in some good company, your employer may refuse to recruit you if you have filed bankruptcy and it shows in your credit report.
• If you intend to buy an insurance plan, you may not get one as per your terms and the insurance carrier may refuse to sell one to you.
• Filing bankruptcy also affects your image negatively and if you want to rent space, the landlord may turn down your request and refuse to rent out his space to you.
• You will not be able to avail fresh credit and lenders will usually shy away from approving credit to you.
Just as bankruptcy gives you a fresh start, it also inflicts mental injury and it takes a lot of time to regain your own self confidence and also win the confidence of lenders, employers, homeowner or your insurance carrier. However, filing bankruptcy is not the end of the world. You will get ample opportunity to repair your finances. Try the other debt solutions that are regarded as bankruptcy alternatives and don’t allow your debts to reach a point when you are left with bankruptcy as the only debt solution.