| Whenever you invest your money in the stock | | | | This also means that, if you are starting with a fairly |
| market, you take on a certain amount of risk. While | | | | large investment of perhaps $10,000, and the |
| there is no way to get around that risk, it is possible | | | | brokers trading fee was a $100 flat rate per trade, |
| to manage your risk by educating yourself before | | | | you would only have to see a one percent return to |
| you start trading. | | | | break even. Of course the reverse is also true, in |
| One of the most important things to remember | | | | that if you are starting with a smaller investment of |
| about any investment, is that if your capital is | | | | only $1000 or so, you would have to see at least a |
| borrowed, you take on an even greater risk than the | | | | ten percent return to do the same. |
| actual investment itself. It is never a good idea to | | | | Your rate of return will also depend on whether you |
| borrow, either from a lending institution or from your | | | | are investing in a short term or long term system. In |
| credit cards, to come up with the money you need | | | | a short term system, you will have many more |
| for any particular investment. This maximizes your | | | | trading fees, since it is based on the buy low, sell |
| risk in that, if the investment doesn't pan out, you will | | | | high, do it now philosophy. With a long term system, |
| still have to repay the amount you borrowed, and | | | | however, you will incur far fewer trading fees due to |
| may even have to pay penalties depending on your | | | | the fact that with a long term investment, you are |
| financial position and ability to repay. | | | | investing in the future viability of a company, rather |
| Make sure that before you start trading, you have | | | | than in an immediate merger or other change. |
| planned ahead and set aside the capital you will need | | | | Managing your money wisely will help to manage your |
| to invest. This will eliminate that third party, and | | | | risk. But it is important to remember that even when |
| ensure all of your profits will go in your pocket, and | | | | your monetary risk has been considered, there is |
| not some bank's ledger. Keep in mind, though, not | | | | always the market risk. That is to say that there is |
| only will you need the money for your capital, but | | | | always the chance that when you invest in the stock |
| also for the most expensive part of the stock | | | | market today, there is no guarantee that the market |
| market - brokers fees. | | | | will exist tomorrow. There are no guarantees in stock |
| While each broker will have different rates, most | | | | market trading, and there is no way to eliminate your |
| charge a flat fee per trade. These flat fees make it | | | | risks entirely. But with good financial planning, and a |
| much easier to see a return on your investment | | | | little common sense, stock investments can be a |
| much sooner than you would with a variable rate. | | | | wonderful way to provide money for your future. |