The best investing tips commonly have to do with how to go about the business of investing. Specific investing tips from your broker, your best friend, investment advisors, or news sources should be investigated by both fundamental analysis and technical analysis before they are acted upon. The problem with second hand investing tips is that they are often yesterday’s news. The market has already acted upon them and driven the stock price up. The best of all investing tips usually come from successful investors and are general in nature. Successful investors like to buy at bargain prices. Successful investors commonly sell stocks and get out of the market when it does not make sense.
When the market fell recently after Standard and Poor’s downgraded its US debt rating many famous investors entered the market to buy stock. These are the same people who got out of the market before the so called dot com bubble burst or before the crash of 2008 when hedge funds were the craze. But, what does an investor do with investing tips like, “There are still lots of good deals in US stocks?” Or, how about, “I only buy a stock if I understand just what the company does to make money.” There is wisdom in both investing tips but investors need to know how to approach stock investing in order to take advantage of these tips. Knowing what a price to earnings ratio is, what dividend stocks are, and what to look for in quarterly and annual reports are good places to start.
Basic investing tips have to do with not only building a stock portfolio but building a future. Anyone starting out to invest needs to rid himself of credit card debt first and should probably look at buying a home next. Many investors are very happy to make 18 percent year after year on their investments. That is the return on investment, albeit an inverse return, gained from paying off credit card debt. Home mortgage interest is tax deductible. Investors flock to tax deductible investments. Owning your own home is a good investment and should come after paying off debts. The next investing tip is to put aside enough money for three to six months of expenses and put it in a savings account. Now is the time to consider how to invest in stocks , commodities, real estate, and the rest.
So, what is a good investment in stocks? Is gold a profitable investment as the US national debt continues to mount? In learning how to invest a new investor can use computerized stock screens to find lists of stocks in any given market sector. Then he can sort by price to earnings ratio or any factor he chooses. A good investing tip from many successful investors is to start by investing in things you already know about. Physicians, nurses, and pharmacists already have a substantial knowledge base regarding pharmaceuticals. This makes investing in pharmaceutical stocks and even medical related bio tech stocks a natural. Anyone else with specific knowledge of computers will have a head start when it comes to analyzing companies and technical products related to computers. An investing tip might just come from your children who love a new product whether it is a piece of designer clothing or a gaming device. Check out the product, the company, their fundamentals, and the stock’s technical aspects. These unexpected tips might be the best investing tips you ever get.