For someone who has no stock market experience, but wants to invest some capital in the stock markets, it can be difficult to know where to start. The important thing is, to not let that hold you back, as there are many options or paths you can take to invest your money in the stock market and find your stock trading picks.
The most important thing to do is to answer some basic questions before you make your decision on which investing path to take. Some important points for consideration are:
- How much time do you have to commit?
- How much money do you want to invest?
- Do you want to learn how to invest in the Stock Markets?
- What Leverage do you want to trade with?
- What type of instruments do you want to trade? Stocks, Options, Forex?
Using a Managed Fund Portfolio
Using a managed fund can be a solution for investors who have very little time to devote to stock market investing.
Essentially with a Managed Fund you open an account and deposit your investment capital into a larger fund account, which is managed by a professional Fund Manager.
The fund manager is responsible for buying and selling a diversified range of stock and other investments in different classes, and has access to a large selection of market research. Stock Trading There are a large range managed funds that are focused on different objectives and strategies, so it’s important to choose one that fits your purpose.
Key points for Managed Funds:
- Largely diversified portfolio
- Usually the minimum investment amount of $1000.
- Like all investments, managed funds do not guarantee returns.
- There are associated costs with participating in managed funds.
- Typically expect a reduced performance, usually closely mirroring the market average.
- Managed Funds don’t give you control over which stocks your money is invested.
Using a Stock Trading Picks Service & Auto-Trading Services.
There are many Stock Trading Picks Services available out there, all of which can offer a range of different services and strategies, some of which include:
- Stock Trading
- Stock and Option Trading
- Option Spreads recommendations
- Forex Trading Services
- Commodity Trading Services.
Usually an investor would subscribe to a stock trading service and pay a monthly or annual fee, for which the investor would be emailed Entry and Exit notification of Stock Trading Picks.
The investor can then execute the trades in his/her own trading account, for which the investor has total control over what and how trades are executed. Some services and brokers offer an Auto-Trading Service, which means that the trade picks are emailed directly to your broker, which will automatically be execute as per the trade instruction, without any effort from the investor.
This can be a handy service for people who have little time to devote to stock market investing, or who are asleep when the market is open.
It’s important to be aware that quality of some services vary quite a bit, for example some only offer trade entry notification for stock trading picks, and do not give trade exit notifications. Whether you’re new to trading, or do not have much time to watch your positions, it’s just as important to know when to exit your position as well as enter.