subject: Investment Bankers [print this page] You should hire a broker to help you if you are considering investing in stock. Brokers have the ability to buy and sell on the stock exchange. Unless you have the qualifications and broker's license to do this, you will need someone professional to do it. Stockbrokers must pass two tests to get their license. These tests are not easy, and most brokers have a background in business or finance, with a Bachelors or Masters Degree.
You must know the difference between a broker and a stock market analyst. An analyst literally analyzes the stock market, and predicts what it will or will not do, or how specific stocks will perform. Instead of analyzing, a broker is there to do what you say. You may find yourself needing both services, particularly if you are new to the stock market.
Brokers generally earn their money from commissions on sales. This pretty much means that when you decide they should buy or sell a stock, they get a percentage. Some charge a flat fee.
There are full service and discount brokers. Full service brokers can usually offer more types of investments, may provide you with investment advice, and are usually paid in commissions. Discount brokers don't usually offer advice.
You should go with a full service broker if you are new. They offer skills you lack right now. If you know a lot about the market, you may just need a discount broker.
It is normal to make mistakes your first few times. The biggest investing mistake that you could ever make is to not invest at all, or to put off investing until later. Even if you can only spare $20 a week, make it work!
Investing too early is also a mistake. Although many will argue that the stock market provides more reliable returns, investing in stock can be a gamble, and like gambling, should only be done with money that you can afford to lose. Begin investing only after you get your financial situation in order. Pay off cards, get your credit cleaned up and save up! Once this is done, you are ready to start letting your money work for you.
Don't invest with the goal to get rich quick. That is the riskiest type of investing that there is, and you will more than likely lose. Let your money grow. Only invest for the short term when you know you will need the money in a short amount of time, and then stick with safe investments, such as certificates of deposit.
Don't put all of your eggs into one basket. Scatter it around various types of investments for the best returns. Also, don't move the money too much. Let it ride. Pick your investments carefully, invest your money, and allow it to grow - don't panic if the stock drops a few dollars. It will go back up if it is a stable stock.
Many people make extremely good livings off stock market investments. It can be risky, and choosing the right broker who understands the risks you are prepared to take will help you reap the most benefits from your investment.
by: Linda O'Brien
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