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Blue Chip Stocks are quality stocks that have a proven track record. A Blue Chip stock is like a member of the family in the American pastoral landscape. The Blue Chip stock makes toilet paper, laundry soap, aluminum, steel , washing machines and just about every well known brand we used every day The Blue Chip stock is Bank of America, U.S. Steel, Proctor & Gamble and others we think of as being our companies.
In times of uncertainty and for long term investors the Blue Chip stocks are a part of every portfolio either in direct stock purchases or through mutual funds. The Blue Chip stock is a large cap company and has decades and even a century of presence on the stock market. Some Blue Stock stocks are relatively new players like Home Depot or the result of a merger & acquisition. If you look around your house and around your town the brand products you use or have come to rely on are Blue Chip stocks.
The fact is that we take for granted the Blue Chip stocks both in our familiarity as an end user, but often times in the stock market. The Blue Chip stocks make up the S&P500 index. These stocks as a whole can be purchased as an index fund. Some Blue Chip stocks make up the Dow 100. These stocks on the whole are a bell weather of how the overall market is doing.
Like any familiar item the Blue Chip stocks become like a comfortable old pair of sneakers. We know where they are and they are easy to slip into, but they may not be as exciting as say Google or Baidu. In recent months some of the Blue Chip stocks have been a flight to safety for some investors. Not all Blue Chip stocks are alike, but some have been grossly undervalued and therefore a good buy.
Ways to invest in Blue Chip stocks:
The investor can pick and choose a Blue Chip stock and buy it through a stock broker or on-line with a trading company like Scotttrade or E*Trade. This gives you access to the companies performance on the short term and charts going back at least 10 years. The investor can access the companies financial reports and quarterly earnings on-line. The investor can ask the company to send you a company prospectus.
There are index funds of Blue Chip stocks that can be bought through a financial brokerage house. There are mutual funds that are designated as Blue Chip Funds in most family of funds offered in all of the major mutual funds companies. There is even a mutual fund company that offers a spider fund comprised of Blue Chip stocks that is similar to the S& P 500.
The variety of ways to invest in Blue Chip stocks is endless. Spiders, Index funds, and hybrids in between. There are option contracts and some tricky investments that only a really savvy trader can advise you about.
The Blue Chip stocks merit a good review in all times not just in times of market uncertainty.
If you are looking are thinking that Penny Stocks are a Get Rich Quick Scheme, Im sorry to disappoint you. Although great fortunes can be made from penny stocks, people can also lose everything they invest in Penny Stocks. The most important investment you can make at the start of your investment career is to invest in education.
Why Education and not stock?
Diving head first into the stock market is a great way of losing your money which is why we dont recommend it. The best thing to do is to read, read and read some more before investing. One of the best places to get free information on penny stocks and trading methods is from the internet.
Forums, websites, news sites and eBooks are a great way to improve your penny stock investment education. There are some great books that you can borrow from libraries or purchase cheaply from shops.
When reading on the internet, please be cautious of stock recommendations and strategies and methods. Stock recommendations and opinions from internet forums can be biased and cannot be fully trusted without doing your own research. Similarly, eBooks with strategies which promise great returns usually do not work as suggested. The reason for this is, even if the strategy worked well for the author, there is no guarantee that it will work for everyone else because everyone is different although you may learn something that you did not already know.
Google News has a business section which is group for free up-to-date information on stocks. Yahoo Finance also has good news section and also provides free charts and company information.
No matter who you get advice from, whether its from a financial consultant or friend, you should always carry out your own additional research. You should make decisions based on facts rather than opinions.
When you feel confident enough you can try some test trades. You can either keep a record of your trades on paper or you can use a stocks simulator website where you invest with fake money. There is a website called Champion Investor (ChampInvest.com) which is great for this purpose as it also calculates profits and losses automatically. Also, if you the top performer of the month, you will be rewarded with 1000.
Using a stock simulator means that you will not lose your hard-earned cash if you make a bad investment. Instead, you will learn not to do it again without losing your money.
If you are consistently able to make a profit with your test trades then you can move onto the real thing. Keep your investment strategy exactly as it was when you were making profitable test trades, but instead of using fake money, you will be using your own money through a stock broker.
So, to summarise – if you are looking to get started in penny stocks, please do not dive in head first without investing your education first.
Do you look at the stock market and wish you’d bought some Google stock back when it was first offered for 104? You’d have gained nearly 300% on that investment in the first year – that’s roughly 9.2% each month! That’s a Wall Street level of success!
Imagine if I could show you an investment opportunity that could easily give you over 14% monthly? What if 21.5% per month was within reach? These yearly returns of anywhere from 500% to 1000% are possible for anyone who has the initiative to go out and get them. That’s 2-4X MORE than GOOGLE, one of the fastest growing stocks IN HISTORY! We’re talking about an investment opportunity where your returns will crush even the top gainers of the stock market. Are you starting to get curious about how these numbers are attainable?
You can beat the stock game by playing a different game, the Foreign Exchange trading game. Also referred to as Forex, the Foreign Exchange market is where one country’s currency is traded for another’s. You can buy 1100 Euros for 1000 US pounds while the exchange rate is at 1.1 Eurospound. Then you can sell the Euros back to pounds for 1100 (and a nice 100 profit) if the exchange rate moves to 1 Europound.
100 may be nice, but that 1% return on the 1000 doesn’t sound like the path to your 500% returns, does it? Here’s how that 1% gets its power: Leverage. With Forex, if you have 300 in your account, you can control a 10,000 trade. That makes your money a lot more powerful than the 1-1 control you get in the stock market! If you’re thinking that you can lose more money this way too, just read on, you’ll learn why that won’t happen.
Consider this: The Foreign Exchange market has a DAILY trading volume of around 1.5 trillion pounds. That’s 30 times larger than the combined volume of all U.S. equity markets (that includes the NASDAQ and NYSE). This is an untapped resource, and you’re about to learn five simple steps towards taking your share out of that market and into your pocket.
1.Get Educated!
As with all things, the more you know about trading, the more likely you are to success. A little effort spent learning up front can save you hundreds and thousands of pounds of mistakes later.
2.Have a Strategy!
A simple repeatable system can turn trading into a low-risk mechanical system. Know when you should trade, how often you should trade, how much money to spend per trade, when to cut your losses, and when to take your profits. Push the right buttons at the right times, and you’ll make money.
3.Practice Makes Perfect!
Most Forex brokers will allow you to sign up for a practice account, where you can trade imaginary money until you’ve solidified your winning strategy. Don’t risk your hard-earned cash until you’ve proven that you’ll succeed
4.Scrape Together 300
That’s 2 months of brown-bagging lunch instead of buying it; or a few months of cutting down on the daily coffee-shop visits. If you start now, by the time you’ve learned a strategy and perfected it on your practice account, you’ll be ready with your 300 to start earning real money. More money is always better, but 300 is the minimum you’ll need to get started.
5.Go Out and Succeed!
By the time you get to Step 5, you KNOW you will succeed, and you’ll spring out of bed every day ready to make your profit. Some days you’ll lose a little money, but you won’t worry. Your strategy allows you to lose a little money from time to time; you proved that losing money periodically wasn’t the end of the world when you practiced; you’ll get up tomorrow and make it back by following your proven strategy.
Starting with your 300, if you made “Google Gains”, you’d have 862 in a year. That’s not bad. With Forex gains, though, you could easily turn your 300 into 1500-3000 in a year! Who need the stock market?!?
Saving the best for last, here’s the shocking truth: The 500-1000% yearly returns are possible, but with a smarter strategy you could turn your 300 into over 10,000 in less than a year without increasing your risks! Best of all, you can do all of this over the Internet without leaving home. That’s 3000% while wearing pajamas. With these kinds of returns, you could realistically quit your job and trade full-time!
If you could use more money if your life (and lets face it, we all can), you owe it to yourself to learn more about Foreign Exchange trading.