Stress-Free Stock Investing: Useless v. Useful Strategies

“Buy Low Sell High” is a useless strategy unless you have a crystal ball at your disposal. Of course we all want to buy low and sell high!

On the other hand, if you set a strategy to “buy high, sell higher”, now you can look for ways to ride along a curve and make gains in the middle of ascending gains (price increase) when the stock is moving up higher.

In the same vein, if you set a strategy to “buy low, sell less low”, you can look for ways to ride down a curve and make gains when the stock recovers (price drop then price bounce-back) when the stock is fluctuating. Keep in mind, however, that buying a price drop can be riskier because you aren’t sure whether you are close to the bottom or nowhere near the bottom.

Stress-Free Stock Investing: Pay Attention to Commissions

If you have enough capital, some brokerages will give you commission free trades for a limited time or renewable every month. Otherwise, one of my favorite discount brokerage is OptionsHouse: straight-forward pricing and very affordable for the individual investor who may not have enough capital to qualify for recurring commission-free trades with bank-linked brokerage houses.

Brokerages offer “perks” for meeting certain conditions, usually asking that you transfer individual retirement accounts (IRA) into their account, or that you meet a certain $ balance. The best perks are recurring, such as being able to make a certain # of commission free trades each month, versus a block of 100-200 free trades that expire after 3 months.

Jane Chin: Start by minimizing your costs (commissions). This means every time you buy or sell a stock, you will pay a commission… so find a good discount brokerage.

Stress-Free Stock Investing Series

Jane Chin: Hi everyone! I will be sharing my best practices for stress-free stock investing. That’s right, stress-free.

When I first started trading I met so many people who are STRESSED OUT!

I looked at why they are so stressed out, and decided to approach investing a different way… while still getting a return on my investment that I’m satisfied with.

Now I’m going to disclaim that I’m no “stock picking guru”, I don’t believe in “rational stock markets”, and I don’t chase after the next “multi-bagger”.