Online investing has been a game-changer for personal investors over the last ten years. Once upon a time, investors had to call their brokerage firm to place trades – an unwieldy process to say the least. But now there are online trading platforms that make it easier for the everyday investor to not just conduct their trades, but also research stocks and balance their portfolios. Best of all, online brokerage firms have lower fees than full service firms, which allows investors to maximize their money.
When you as the everyday consumer buy and sell shares online, you have a unique method available to you to select stocks – an edge over the professional trader – you may never have thought of. While there are tons of great ways to research stocks, one of the best ways to find stocks to buy and hold for future growth doesn’t involve looking at the trends, reading the Standard & Poor’s, or following along with what the experts say will be (might be) the next great investment – after all, everyone else is doing the same thing.
But as a consumer, you know the brands and businesses that offer consistent value to you. That’s a great starting point for seeing growth potential in a business (although of course, you’ll want to research the company further). Are you in love with your morning coffee from a particular chain, a die-hard fan of certain clothing retailers or did you recently discover a product that you think every new parent should have? If those companies are publicly traded, you may have a leg up on other investors if you’re willing to consider investing in the company behind the products you love – before everyone else discovers their potential.
I have a friend who is a totally ordinary guy. Not a brainiac by any stretch of the imagination – just your everyday consumer. But managing his own stock trades online, he made over two hundred thousand dollars over the last ten years. One of his secrets is that investing is his hobby – he’s passionate about it, which means he’s driven by excitement, not fear, when it comes to investing. He doesn’t need a day off because he enjoys researching and monitoring stocks! But his other great secret is that he taps into what he loves and what his friends are talking about to find the best investments. For instance, he bought a new truck with satellite radio and fell in love with the idea. Thinking this was going to be big, he invested in XM before the crowds – and his investment in XM paid for his next truck! I’m willing to bet if it weren’t for the immediacy of handling his own trades online, he never would have developed this huge passion that’s been a great boon to his family.
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Personal Capital lets you see all of your accounts in one convenient place. Sign up now for free.So what companies are there in your life that reflect serious growth potential?
Roger @ The Chicago Financial Planner says
Your idea of looking into buying stocks of company’s that make the products you use and like is very reminiscent of the great mutual fund manager Peter Lynch who delivered some amazing returns at Fidelity Magellan prior to his retirement as the fund’s manager.
Harry Campbell says
Yea that’s actually how I started out investing. In high school/early college, I invested primarily in stocks of companies I was using. Didn’t always sell at the right time but I picked a couple decent ones 🙂