Tuesday, April 10, 2012

How to invest in the stock market without gambling

Investing in the stock market is a risky business if you don't know what you're doing.  I learned this the hard way as well :)

After a few years of doing my own research (i.e. asking friends, reading the feeds on Google finance, etc.) and having some hits and misses, I decided that I needed expert advise if I really wanted to invest in the market as opposed to placing bets on the market.  And to set the record straight, I consider placing bets on the market without thorough research to simply be gambling.  You win some but you lose a lot more! 

I started researching for stock recommendation services by a trusted and reputable organization and came across Cabot Heritage Corporation - one of the oldest and most respected independently owned financial newsletter publishers in the U.S.  They offer 12 investment advisory services and serve more than 200,000 individual subscribers in 141 countries.  Their offerings serve the appetites of investors of all level - from the newbie to the expert.

Some of my favorite features of their newsletters are:
  • Easy to Understand - they are written in a clear and concise manner 
  • Max Buy and Min Sell Price - they tell you the max buy price and minimum sell price of a stock/security so you know exactly when to buy and when to sell
  • Personal Advise - you can reach out to the editors via email/phone with any questions you have on the recommendations or any questions about the market in general
  • Educational Resources - they have a huge library of resources to educate you better on the inner workings of the market 
  • Excellent Price - all of their newsletters are priced better than similar services from their competitor's
  • Money Back Guarantee - they offer money back guarantees to try out the services
Of the 12 investment advisory services, I recommend the following for the conservative investor or the investor who is just starting out:
In my three year relationship with Cabot, I've subscribed to Cabot Market Letter, Cabot Benjamin Graham Value Letter, and Cabot Top Ten Trader (only for the aggressive investor) and have found the service to be invaluable.

I know the market seems very volatile at the moment but with the right advise, money can be made in any market environment.  The financial advisers at Cabot believe that the best is still ahead of us.

Read on to hear what Michael Cintolo (VP of Investments, Editor of Cabot Market Letter and Cabot Top Ten Trader) says about the prospects for the rest of 2012.
I don’t know how you’re investing now, but I do know this: 2012 will be remembered as one of the most profitable years on record.

In fact, the numbers we’re seeing indicate not only a powerful presidential rally of epic proportions but also the opportunity to grab another three years of profits in the next six months.

I’m not just guessing either.

Here’s why:
1. The consumer spending, jobs and construction pictures are improving exponentially.
After all, the nation not only added 227,000 jobs in February but also it was the eighth month in a row the economy added at least 100,000 jobs … the longest streak since 2006.

What’s more, the commerce department’s numbers show that construction spending not only rose 1.5% in December but also it was the fourth increase in five months—pushing spending to an annual rate of nearly $1 trillion. All while remodeling activity rose 22.8% year-over-year. Compared to the last three years, my friend, those numbers are huge.

And as if that weren’t exciting enough, experts expect consumer spending to rise in select niches, with consumer electronics spending expected to hit nearly $1 trillion in 2012. Americans aren’t just buying smartphones and gadgets either. They’re buying cars too—a whopping 13.1 million in 2011—which experts see rising past 14 million in 2012. The only reason this is happening is that Americans are growing more confident.

You should be growing confident for 2012, for this second reason too:

2. We’re also entering one of the most profitable and predictable investment years of the decade: The run-up to the presidential election.
Most investors don’t know this, but over the past 15 presidential election cycles, the market has risen 12 times.

The reason is simple. The current administration always pulls out all the stops to keep the market humming in order to get reelected.

Make no mistake: Given President Obama’s approval ratings, he will be doing everything he can to make nice with the business community to get the U.S. economy humming.

When you add in the fact that manufacturing business conditions were at the highest level since June 2010*, you couldn’t ask for more signs that not only is a turnaround in the works but that the DOW could hit 14,000 or more by election day 2012.

This is why our time-proven technical indicators are forecasting a MAJOR BREAKOUT ahead for our stocks that are profiting from these growing trends.

Unfortunately, most investors will miss the next run-up as the financial media continues to scare them with story after story about the jobless recovery, the poor housing market, rising energy costs, and the many other forces that indicate a double-dip recession is in your future…

…all but ignoring the mounting scientific data showing that in fact, yes, the economic picture is not only brightening but also offering you the opportunity to scoop up 30% to 50% gains by the end of 2012.
All financial planners agree that investing in the stock market is a MUST if you want to grow your wealth.  Historically, the market grows over the long term, and because of that, the sooner you start, the better your chances of having a nice nest egg for retirement.

If you've never opened a brokerage account, may I recommend the firm that I use: OptionsHouse.  They have an excellent platform with a lot of useful tools and for $3.95 per trade, it's a great low-cost brokerage.  They're also offering 100 FREE trades if you open an account and fund it with at least $1,000. 

If you're not quite ready to invest with real money, you can sign up and use their virtual trading platform to learn the ins and outs of stock trading without putting your money at risk.

If this appeals to you, may I suggest that you:
Until next time, happy investing!

[P.S.: If you find this article useful, please help spread the word.]


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