Even the most knowledgeable investors find the stock market really tricky and challenging. When there is money on the line, events often don’t go as predicted. Applying what you’ve learned from this article will help you to make wise stock market investments.

Monitor the stock market before you actually enter it. Studying the stock market at length is recommended before purchasing your first investment. The best way is to monitor it for about three years or so. This will give you a much better idea of how the market actually works and increase your chances of making money.

Exercise the voting rights granted to you as a holder of common stock. While each company differs, you may be able to vote for directors or for proposals that involve major changes like merging with another company. Normally, voting takes place each year at the shareholders’ meeting or through proxy voting if necessary.

Don’t make an attempt to time markets. History has shown that people who do best in the stock market are steadily investing equal amounts of money over a period of time. Determine the specific percentage of your money that you are able to invest. Then, begin investing and be sure you stick to it.

If you’re comfortable in doing research of your own, then consider making use of an online broker. The fees to trade and commissions on these online brokers are much cheaper that a discount or full service brokerage. The money you save goes right into your pocket, though. Excessive fees are an enemy to long-term success as an investor.

If you want more flexibility when it comes to picking your own stocks then become involved with your broker that has online options as well. Working with such a broker lets you split your total investment into whatever proportion you like, handle part of it yourself, and turn the rest over to your broker. You will have a balance of professional management and personal control over your investment decisions.

Be wary of unsolicited recommendations and stock tips. Of course, your own adviser should be listened to, particularly if you know they are benefiting from their own advice. Don’t listen to anyone else. No one ever said it was going to be easy to invest. It’s going to require doing your homework. You need to constantly seek out great, reliable sources of information.

The stock market should not keep you from finding other things to invest in. There are other good areas to invest in, such as mutual funds, bonds, art and real estate. Diversifying your portfolio means more than buying different stocks, so invest your money in a variety of sectors to ensure you’re covered in case of a stock market crash.

Keep the distinction between profit and cash firmly fixed in your mind. Look at your own financial situation as a business that requires a certain amount of cash flow. Although it is great to reinvest your money or spend some of it, you still want to set money aside to take care of your immediate bills. Most financial planners recommend keeping six months’ worth of living expenses stashed away, in case anything happens.

Purchase large, popular stocks. If you are new to the market, these options can fill your portfolio with stocks that offer lower risks for their investors. After you gain some market experience, you can start investing in small or midsize companies. Small companies have a larger growth potential, but also have a large risk for loss.

If you wish to pay lower fees for investing, considering trading online. Online firms can offer reduced prices that are not provided by standard brokerage firms. Make certain that you have done enough comparison shopping to ensure you have gotten the best deal around. TradeKing and Fidelity are good examples.

When looking at company, carefully scrutinize how equity is matched up to the voting rights in the company. There are times in which corporate managers hold just a small percentage of the stock, while retaining a large proportion of voting authority. Situations like this are a strong warning sign to stay away from this particular stock.

As aforementioned, there are several things you can do in order to make sure that your stock market investments are as secure as possible. Learn some tips and tricks about profitable trading practices by applying the information you gained in this article.