Are you planning to invest in stocks and would you like to earn without doing much? If you are, this blog is for you!
The easiest method of investing in stocks is through passive trading or as I define it–money cost averaging.
It depends on what kind of currency you have in your country, so it can be called dollar cost averaging, peso cost averaging, to name a few.
How does passive trading or money cost averaging works?
First of all, you have to find a reliable company of brokers.
It’s through this company that you’ll be able to invest in stocks. Request to the person in charge the list of requirements and submit those when they are already complete. Then the person in charge will let you know if you’re qualified to be one of their clients.
Second, attend seminars especially if they’re for free.
The broker company usually conducts free seminars to attract would-be clients to apply as stock investors through them. Avail of their free seminars. That will enlighten you about the best companies to invest your stocks in.
The seminars will also provide you with important information on the stock market. They will likewise open your eyes to the risks you are about to take, yet will teach you how to continue investing in stocks by knowing what to do when your stock records turn awfully red.
Third, make your initial deposit as an investor.
Your broker will create an account for you. That’s where you’ll deposit your initial capital for your investment.
As passive trader, you’ll have two options.
One, you’ll have the chance to choose the companies to invest in. You have the right to distribute your money to the companies you choose to have your stocks. You’ll learn to determine the minimum number of stocks of the companies. Then you can better decide how to distribute your money to the companies where you prefer to acquire stocks.
Your second option as a passive investor is by investing through mutual funds.
Here, the broker will professionally manage your stocks for you. The broker company will choose the companies and distribute your money among them. They will do the monitoring and the decision when to buy or sell stocks for you. You just have to regularly invest or deposit money to your account, depending on the conditions agreed upon by you and your broker. That could mean depositing monthly, quarterly, semi-annually or annually.
You can have the opportunity to see the progress of your stock investment online. This way you can monitor it anytime you want to.
Money cost averaging will give you the chance to invest in stocks without doing much effort. It’s one of the best means to have a better life in the future.