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The Smart Money Stock Investing Tip

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The Best Stock Investing Tip in the world is this:

Invest in the Broad Market consistently for a long period of time.

Don't try to time the market. There are 1000's of high level strategies and tips out there that cost money and don't work. You can research and study for years and spend tons of money on consulting or you can just simply use this one free Smart Money Stock Investment Tip to reap the best returns for your future.

You don't even have to take it from me that no one can predict the market over and over again. Two of the best and most well know investors of all time, Warren Buffet and John Bogle both are quoted saying the same thing.

Stock investing is only as hard, expensive, and stressful as you make it.

The are 3 things that you can do on your own that will allow you to make money from the market and enjoy the great returns the market has to offer. The market throughout history has generated the best return on one's money.

Now onto 3 simple yet highly effective steps to investing into the stock market taking out the stress and guess work.

Stock Investing Tip : #1

Open a brokerage account. The new Sharebuilder Account offered by ING Direct has the cheapest commission rates out there. It also has a great feature called "auto investing" (which I recommend and will talk more about later) for only $4 a trade! The average per trade commission rate in the brokerage account universe is $12. Saving you $8 a trade. This really adds up over time and gives you a better return.

Aside from having the lowest per trade commission rate,ING Direct also has the Savings account were you will have your funds sitting in earning one of the best interest rates out there.

Opening a brokerage account is very easy. You go through a questionairre, deposit funds, and link it to your ING Savings account or another bank account.

Stock Investing Tip : #2

Invest in the broad market and diverisfy. Instead of trying to time the market and pick specific stocks just go the smarter and safer route and invest in the broad market. Believe me you will beat the returns of those who try to time the market.

You want to invest in stock funds that track the large indicies and represent the total U.S. market.

The 2 stock funds you want to invest in are:

Ticker: DIA (represents the Dow Jones Industrial Average Index)

Ticker: SPY (represents the S&P 500 Index)

The 2 indices listed above are familiar to most. They are the most well known and used indices in the world. They track the the largest companies in the U.S. and represent the market as a whole and these stock funds mimic these indices.

They are among the safest in the universe but still offer you great returns over time.

Not to mention they pay dividends!

Dividends are monthlty or quarterly deposits into your account just for owning that particular equity. They pay a percentage of their stock price to all stock holders of record on a certain date.

**You can also have your dividend payments automatically reinvested for free! I do recommend this because you will only grow your portfolio quicker over time without investing an extra penny of your own.

Stock Investing Tip : #3

Invest consistently (monthly) and do auto investing.

No matter what you can afford monthly just invest. $100, $200, whatever the number is just divide that number by 2 and put that amount toward each of the 2.

Every month on a specific day, (for example: second Tuesday of the month) your trades will be executed without even doing anything for a miniscule $4 per trade for a total of $8. Two thirds the normal commission rate for just one trade at most brokerage companies!

I recommend picking the middle of the month for auto investing. Historically the beginning and end of a month have higher prices. This will help you buy lower on a more consistent basis.

That is It.

Don't stress the ups and downs of the market just let it go. If you must check on your portfolio do it sparingly and don't touch it!

It is very simple. The smartest Stock Investing Tip on earth is:

Invest consistently in the broader market over a long period of time without trying to time the market.

And the best part about this Smart Money Stock Investing Tip is anyone can do it!

Just let the market run it's course and believe me you will enjoy awesome returns and have a great portfolio in years to come giving you a better financial future.

Be sure to check out our other popular article: Money Tips


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