Article

The Best Smart Money Stock Investing Tip

Topic: InvestingPublished November 23, 2009

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The Best Stock Investing Tip in the world is this: Invest in the Broad Market consistently for a long period of time. Don't try to time the market. There are 1000's of high level strategies and tips out there that cost money and don't work. rnYou can research and study for years and spend tons of money on consulting or you can just simply use this one rnfree Smart Money Stock Investment Tip to reap the best returns for your future. You don't even have to take it from me that no one can predict the market over and over again. Two of the bestrnand most well know investors of all time, Warren Buffet and John Bogle both are quoted saying the same thing. Stock investing is only as hard, expensive, and stressful as you make it. The are 3 things that you can do on your own that will allow you to make money from the market and enjoy the great returns the market has to offer. The market throughout history has generated the best return on one's money. Now onto 3 simple yet highly effective steps to investing into the stock market taking out the stress and guess work.

Stock Investing Tip : #1

Open a brokerage account. Opening a brokerage account is very easy. You go through a questionairre, deposit funds, and link it to your Savings account or another bank account.

Stock Investing Tip : #2

Invest in the broad market and diverisfy. Instead of trying to time the market and pick specific stocks just go the smarter and safer route and invest in the broad market. Believe me you will beat the returns of those who try to time the market. rnYou want to invest in stock funds that track the large indicies and represent the total U.S. market. The 2 stock funds you want to invest in are: Ticker: DIA (represents the Dow Jones Industrial Average Index) Ticker: SPY (represents the S&P 500 Index) The 2 indices listed above are familiar to most. They are the most well known and used indices in the world. rnThey track the the largest companies in the U.S. and represent the market as a whole and these stock funds mimic these indices. They are among the safest in the universe but still offer you great returns over time. Not to mention they pay dividends! Dividends are monthlty or quarterly deposits into your account just for owning that particular equity. They pay a percentage of their stock price to all stock holders of record on a certain date. **You can also have your dividend payments automatically reinvested for free! I do recommend this because you will only grow your portfolio quicker over time without investing an extra penny of your own.

Stock Investing Tip : #3

Invest consistently (monthly) and do auto investing. No matter what you can afford monthly just invest. $100, $200, whatever the number is just divide that number by 2 and put thatrnamount toward each of the 2. Every month on a specific day, (for example: second Tuesday of the month) your trades will be executed without even doing anything. I recommend picking the middle of the month for auto investing. Historically the beginning and end of a month have higher prices. This will help you buy lower on a more consistent basis. That is It. Don't stress the ups and downs of the market just let it go. If you must check on your portfolio do it sparingly and don't touch it! It is very simple. The smartest Stock Investing Tip on earth is: Invest consistently in the broader market over a long period of time without trying to time the market. And the best part about this Smart Money Stock Investing Tip is anyone can do it! Just let the market run it's course and believe me you will enjoy high returns and have a great portfolio in years to come giving you a better financial future.

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About the Author

Learned through much lost time and money this one stock investing tip allows you to invest the smart way. The tip in this article comes from the mouths of 2 of the most successful investors of all time: John Bogle and Warren Buffett. For more Money & Investing Tips see the article: Smart Money Tips or visit our website: Smart Tips and Tricks for Everyone.

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