One of the most frequently heard myths about investment loyalty is it typically means you’ll blindly follow whoever’s willing to hand you the biggest check. Many companies during those years weren’t so concerned with Wall Street’s wishes and some companies would pay more than others for a particular stock. This left many investors with lots of money in their pockets but not a clue as to what to do with it. Today’s economic climate makes investing in stocks a bit more difficult than in previous decades but having a financial plan and having a sense of when to sell can help protect your bottom line.
It used to be that investment companies would list the stocks you were interested in and then let you invest accordingly. They would either pay you a bonus or offer you a percentage share in the business. The catch was that you had to hold on to the shares for the length of the initial investment. If the company went bankrupt, you lost all of your money.
Nowadays, things have changed. Although many brokerage firms still list the stocks they are currently handling, many are no longer offering personal investments. Instead they are acting as salespeople for the stocks the firm is currently handling. So what happens to the investment loyalty? Well, now you have several choices when it comes to making money through stocks.
First, you can simply keep your money tied up in certificates of deposit (CDs). These types of certificates are insured by the FDIC, so if they lost your funds they couldn’t cause any financial harm to you. Plus, if you ever decide to sell your portfolio you won’t lose all of your money. Also, they’re a great way to get started in the stock market because they come with a start-up package.
But if you’re like most people and you’ve never traded before then it’s probably a little too risky. And with the recent economic troubles around the world it’s quite possible that your portfolio could take a huge hit. So what other options do you have? A good place to start is with mutual funds. They make investing in the stock market a bit more secure since they usually follow an overall investment plan that makes sure they stick with it no matter what happens.
When you purchase a stock in the stock market, you usually get one share for each dollar you invest. But there are different rules that apply depending on the exchange you’re trading with. For example, some exchanges only let you buy stock in the company whose name you choose. Others may allow you to invest up to a certain amount each year in certain companies. There are also some stock markets that use the “over-the-counter” system which means your transactions will be handled electronically. These are called” NASDAQ” or “order of trade” systems.
Another option for those of you who are new to the game is penny stock investing. This isn’t really a type of investment loyalty when you first get involved but can save you some money in the long run. Since penny stocks are usually lower risk trades, you’ll be able to get started with less capital and no significant upfront fees. Just remember that the more money you put into these investments, the lower your potential return. They also take some time to mature so it’s always best to buy after the best years are past.
Now that you know what types of programs can help you with the truth about investment loyalty, let’s look at how you can find a good program to help you with your investing needs. To begin with you should consider who you’re looking to make it work for you. Are you a newbie who wants to make safe money? Are you a seasoned veteran who wants to capitalize on his gains and make even more? Or are you somewhere in between, an investor who wants to do well but doesn’t want to put out a ton of money to do it? No matter what type of investor you are, you should be able to find a program that will get you to where you want to be.