Can a thousand dollar get you somewhere in stock market? Well, that is probably the most common question asked by a business minded teenager ,average stock trader or a middle class earner. The reason behind the figure of $1000 is of course the idea of safely stepping into the arena of Stock trading. The article specifically sheds light by giving tips on stock trading , with an investment of just $1000 in one’s hands. The idea of this article is to give readers some tips and techniques to keep in mind when going for investment in stock market with minimum amount possible.
Save on Trading Fee
A trading fee is a fee charged by discount brokers for every transaction. Imagine having $1000 and you splitting this amount among different share transactions. Yes, it will cost you a particular amount of fee for every transaction, which is around $5 – $8. Though putting all the eggs in one basket might be considered a bit risky. In our case though, it is the most advisable option. If not a single, go for two transactions to save in trading fee.
Go for Direct Stock Purchase
There is another option of saving on these trading fees, and that is the direct stock purchase plan. Through this plan you can buy stocks directly from the company and thus end up saving more and doing many transactions. Some of the companies that entertain direct stock purchase are Google and Microsoft. Since not all of the companies offer this facility, you have to study and get the information with your own efforts.
Know what is happening
Like any other business, stock investing also require maximum amount of devotion from the investor. In fact, it will be true if I say that it requires one to have complete knowledge of current and international affairs as well. Stock markets are heavily affected by the crisis around the world, changing of governments and new laws and policies of the state. So the idea is to keep your eye and ears open for things happening around you. Newspapers, internet and magazines are perfect source for this information.
Look for New Stocks being floated
When a new company enlists in a stock market and floats its shares, the prices are the declared prices and hence they are bound to bring back profit, if you choose wisely and with complete knowledge. So, keep an eye for these kinds of companies that are already in profit and go for them whenever you get a chance.
Always Keep your Safety ON
Yes, this is imperative that you know when to quit. Firstly, you should never invest the total $1000 at a time. I would advise you to always have 300 dollars safely tucked in your account. At times you would invest according to the market trend and also as a result of quick decision because of some tip. No matter how tempting the tips might be, try never going all in. Going all in makes the transaction more of a poker game. Stock investing is not a Do or Die situation. In fact it is more of a calculated risk backed by study and market observation.