By Russ H., Senior Stock Broker and Guest Blogger
It was October 1993 and I was gearing up for another competitive trick-or-treating session with my sister. Each year, we’d lug up our plastic pumpkins from the basement, made sure there were no SweeTarts® from Halloweens prior, and crossed our fingers that the dentist next door wasn’t handing out apples again.
Upon arriving back home, loot in hand, it was clear that my sister won. With a smirk, she began counting her pieces, knowing she’d have bragging rights for another year. How could this be? I was bigger and faster, yet she consistently netted more candy. Looking back, it’s easy to see why I was defeated — she planned. She knew the best houses, fastest routes, and avoided the dentist all together. She navigated that neighborhood like Magellan, while I walked around like the Headless Horseman.
As a senior stock broker, I’ve seen many online traders take my trick-or-treating approach to their investments. Many don’t plan, have no exit strategy, and wing it.
You don’t have to navigate these streets of ghouls and goblins alone. In the “spirit” of the holiday season, I’d like to offer a few helpful suggestions that may help you be a better do-it-yourself trader or investor:
Stock Screener — It’s not uncommon for clients to say, “I want to start trading but I have no idea where to start.” If that’s you, pull up our stock screener to narrow down thousands of stocks to only a handful, from equities with high dividends to certain industries and positive analyst ratings.
Patience — Using fundamental or technical analysis may give you an opportunity to choose your entry point. If one opportunity gets away, do your research and set your sights on the next one.
Include Order Types — No one enjoys losing on a trade, but using stop-on-quote, stop-limit-on-quote or conditional order types can help limit losses and assure that your trade order was executed at your desired price.
Research — Take time to read the latest headlines and commentary from reputable sources such as Reuters and Standard & Poor’s or listen to the Daily Market Commentary by Learning Markets1. All of these sources can help you make informed decisions when you trade.
Indicators — Don’t underestimate the value of technical indicators. They can tell you much about a security, including its history, current prices and volatility, so you can better spot trends and trading opportunities.
Taxes — Find and implement a tax strategy suited for you. There are various tax strategies you can learn about at Scottrade that may help you maximize gains and reduce your tax burden. You may also want to consider using the Gain/Loss & Tax Center to help you set your tax strategy.
What advice would you give to another DIYer to help them with their investing or trading?
Also of Interest:
Russ H. has been with Scottrade since 2008, and is a senior stockbroker in Fort Collins, Colo.
Scottrade does not provide tax advice. The material provided in this article is for informational purposes only and Scottrade is not responsible for any errors or omissions. Please consult your tax or legal advisor(s) for questions concerning your personal tax or financial situation.
¹The materials presented are being provided to you for educational purposes only. Scottrade, Inc. and its affiliates have not created and are not responsible for such materials. The content of such materials has not been adopted, endorsed or approved by Scottrade or its affiliates. The content was created and is being presented by an independent party not employed by or affiliated with Scottrade or its affiliates. The information presented or discussed is not a recommendation or an offer of, or solicitation of an offer by, Scottrade or its affiliates to buy, sell or hold any security or other financial product or an endorsement or affirmation of any specific investment strategy. You are fully responsible for your investment decisions. Your choice to engage in a particular investment or investment strategy should be based solely on your own research and evaluation of the risks involved, your financial circumstances and your investment objectives. Scottrade and its affiliates are not offering or providing, and will not offer or provide, any advice, opinion or recommendation of the suitability, value or profitability of any particular investment or investment strategy.
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