Stock Investing

Welcome to the mysmp stock investing education center.  Over the long run, investing in stocks generates the highest return when compared to any other asset class.  However, it is not as simple as investing in stock and holding it until you retire.  Markets move in cycles and every new bull or bear market is led by a new set of leaders.  For example, have you ever wondered how the stock market doubled in 2003 - 2007 and many of your stock investment portfolios only recovered a portion of their losses from the crash in 2000?  This is because the leaders of the tech boom in the late 90’s were not the leaders of this most recent bull market.  Furthermore, the crash of 2008 has made it necessary to consider taking a more active approach to managing your portfolio while it has also shown us that the buy and hold model of stock investing is dead.  Many baby boomers looking to retire are now left with 50% of their anticipated retirement savings.

Investing Basics

Investing Strategies

Online Trading

Market Indices

In our stock investing center, you will be able to learn the basics of investing and the markets through our Investing Basics section.  For those of you looking to learn some common approaches to investing, visit the Investing Strategies area.  Finally, if you are just getting started with trading and confused on how to place orders and manage your online account, visit our Online Trading articles. 

Within our Investing Basics section, you will learn about how gauge the stock markets direction by spotting important trend changes in the marketplace.  While it is impossible to forecast every hill and valley in the stock market, the difference between an investor who strictly prescribes to the buy and hold philosophy of stock investing and the one who somewhat takes a more active approach to investing in stocks can be dramatic.  The key is to be able to recognize when a major market shift is upon us and stay out of the market during these times.  Imagine if you could just keep your money in cash or some other safe haven during a 30% market decline.  This will give you a sizeable advantage at retirement.  Also, learn about many other topics such as ETF’s, the Dogs of the Dow, and even short selling.

Next, in our Investing Strategies section, we discuss the variety of different stock investment methodologies.  Dollar cost averaging, pyramiding, and investing in stocks which are in trading ranges are just a few of the strategies discussed here.  At the end of the day; however, the key to successfully investing in stock revolves around a trader’s ability to mitigate risk and leave their emotions checked at the door.  The article covering Jesse Livermore’s money management rules is a must read for anyone serious about investing with rules.

Lastly, our Online Trading articles are a great primer for those who are new to investing on their own.  Here, you will find many articles on stock investing from a trading management point of view.  For example, read about the order types which specify order duration and price.  Also, learn about margin and how it applies to your trading account and finally, review the article on ECN’s to understand how your order is routed and filled once you place it.