Investing In Stocks For Fun and Profit
Who says you can’t have fun investing in stock? While it is true that your objective is successful trading, enjoying what you are doing is important as well. One thing that will help you to enjoy your trading is employing the assistance of a stock broker. The types of brokers available has changed over the past 30 years and now stock trading offers investors a wide range of options and traders can concentrate on investing in stocks for fun and profit!
After enjoying years of dominating the investment world with high commissions and no alternatives, the full-service brokers lost control of stock market investing in 1975. The year that brought the movie “Jaws” also ushered in the era of discount stock brokers and investing in stock was radically changed. Traders now had a variety of investment options that were based on a variety of factors. This new breed of brokers drove down the commission cost of investing and helped to create these types of brokers:
oDiscount broker with assistance
oFull service broker
Have these extra choices helped investors investing in stocks? For the successful traders, the variety of ways of investing in stocks has no doubt helped. Commission prices dropped and the competition for clients has helped to create a breed of smarter brokers. What about the less fortunate? For those who just can’t get it right, the new choices probably just made it easier to make investment mistakes. Remember that technology can’t help any investor if he or she doesn’t make the effort to be knowledgeable at investing in stocks.
Discount / Online Brokers
In a sense, discount / online brokers simply take orders. Companies like this will take your order for investing in stocks either over the phone or online. They won’t help you with picking a stock nor will they tell you when to buy or sell. On the other hand, if you are dealing with them online, you may never actually talk to one of their employees while you are investing in stock. Some online brokers offer access to research, however it is often third party and they do so without providing stock analysis. They may have account management tools, either online or that you can download.
Discount Broker With Assistance
This is a spin off from the original. While they are still not full service, these firms offer more research than the traditional discount / online brokers and they might even offer stock buying tips, without actually giving recommendations about investing in stock.
Full Service Broker
For most people, this is the Cadillac when investing in stocks. The full service broker provides stock market advice for your consideration. The broker will assess your financial situation and help you to determine your needs and investment strategy. The broker puts together a plan to invest in stocks that you review periodically and adjust as necessary. This service is great if you don’t have the time or interest in making you own investment decisions.
If a full service broker is a Cadillac, a money manager might be a Rolls Royce. He or she handles significant stock portfolios, so unless you have a hefty sum to invest, you should consider a different route to invest in stock. Money managers assume the responsibility for investment portfolio in exchange for a percentage of the assets they manage. This is an expensive option. However a good money manager is worth every cent.
When the investment world changed in 1975, the potential was born for traders that invest in stocks to experience more investment options. Through carefully planning and selecting of a broker, investing in stocks for fun and profit is still possible.