A few months ago I asked a friend of mine to give me some stock trading tips. Larry is a broker on Wall Street and has been working at a top firm for over twenty years. When he asked me why I was so interested in the market, I told him I wasn’t happy with my current broker. I had a small, diversified portfolio with a brokerage house in our area, and like most people the value of my portfolio was in the toilet. It had lost nearly half of its original value. I told Larry I thought I could do better. Larry smiled and said, “Oh, really.”
We laughed a bit at this. Then Larry told me if I was serious about leaving my broker and managing my portfolio on my own, there were several things I should know. To begin with, he said, I should educate myself about the market. Publications like the Wall Street Journal, Barron’s and the Economist were required reading for anyone who wanted to manage their own accounts. These stock trading tips made a lot of sense and I got subscriptions the very next day. He also said that I could get an online trading account. Most online trading companies offered rock-bottom charges. Additionally, he said that I should read some basic books on how the stock market works, and about the basics of stock trading – and even possibly attend a few seminars on trading to educate myself.
“But it’s not a game,” Larry warned me. “So many guys get involved in online trading thinking they’re going to become millionaires and end up losing everything they have.” Larry said I should remain conservative and only trade a few stocks a day. In the end, this was one of the best stock trading tips he gave me.
For weeks I read the publication he suggested and picked up new stock trading tips just about everyday. When I thought I was ready I closed my account with my broker and transferred the funds into my new online trading account. I followed Larry’s stock trading tips and created a very conservative portfolio. When I felt comfortable with my knowledge on a few equities, I began to trade them in small amounts. The strategy worked out, and after a few months my portfolio was off life support and walking around again. I couldn’t have done it without Larry’s level-headed stock trading tips.