Chances are you’ve heard about a scam where investment advisers keep secrets from their investors about how they could make more money, and are keeping a large sum of the earnings for themselves (using the clients initial capital to gain returns). Ive listed below just a few investing tips that you should consider following if you want to make the most from your capital. Its important to realize that many investment professionals are not always looking for your best interest, and many times they take advantage of new clients. The very nature of investing in stocks, bonds, mutual funds or other type of investment strategy involves taking a risk. The more calculated you can make that risk, the better your chances are for getting a good return on your investment. The reality, however, is that there are some things your professional broker probably won’t tell you about investing. Things you really should know if your looking to take your investing to the next level.

Investment Tips

1. Building a portfolio involves choosing around 20 to 30 strong stock picks. This is not accomplished over night and involves making sound investment choices. Take your time and select a bearish or bullish stock.
2. Keep the back door open on each trade. This means that you should always have an exit strategy that you can utilize. Why? Stocks can be very volatile and gain or lose value quickly. Have a way to sell or get out legally before you lose everything.
3. Consult a stock ideas menu when you are looking for new trades. Stocks that have been listed the longest are usually the strongest.
4. Never invest more than 5% to 10% of your capital in one stock pick. This is simply sound investing advice.
5. Give yourself three to four months to build a sound portfolio. Avoid high pressure picks and stock choices that haven’t been researched.
6. Make your exit strategy work along with the stock prices. Stocks go up for a certain amount of time. Pay a price that coincides so that you don’t lose money.
7. You can drastically reduce your trade risk by waiting for your stock to have an average daily volume that gives indication of the stock’s intended or desired direction. This is sometimes referred to as the stocks Confirmation Day.
8. Keep free capital. Don’t over commit to buying new stocks too soon so that you can have a stable cost basis.
9. Situate trades to have 12% to 24% greater potential gain than potential loss, which should be no more than 6% to 8%. Clearly, greater potential gain can offset potential loss but only in proportion.
10. Never pursue a new stock pick that moves more than 5% at the open. The methodology is simple; the gap up is more likely than not a warning sign.
11. Be sure to review the newsletter on Monday and update any stop loss levels. During uncertain market conditions, these levels are raised in an attempt to protect unrealized portfolio gains.
12. Diversify your stock options when building a new portfolio. Include first target profits as you do so.
13. Only use margin sparingly or not at all when buying or selling stocks. Pay special attention as you may have to use margin for the selling of short stocks.
14. Allow the market to sort out overnight trades. This means avoid initiating any new investment orders before 10:30 a.m.