Prosper Newsletter: May 2008 > Stock

You understand that the following information is educational in nature and is not intended to be legal, accounting, or tax advice. You are responsible for your own financial decisions and should consult your own legal, accounting, and tax advisors before making your financial decisions.

Cost Cutting

Self-Investing

Hiring an investment firm to manage your portfolio can be an expensive proposition. There are many fees and commissions involved when you have a firm handle your investments. These investment firms can be a good match for some people, but some prefer to save some cash and control their own money. Those who are more independent, or are unwilling to pay the fees charged by investment firms, should consider self-investing.

Self-investing can be a little more dangerous than associating yourself with a professional broker that spends the working day getting to know the stock market. Jumping into an environment that is filled with professionals, while you are only an amateur, can be a daunting task. In fact, successful self-investing requires much more work and effort than if you were to turn your investments over to a firm. It requires much moe research before you buy or sell. However, the Internet has provided an online environment that makes self-investing significantly easier.

There are several online firms that allow a person to self-invest, such as Sharebuilder. Generally these firms charge a one-time start-up fee, then a small per-transaction fee. These sites also offer information, graphs, and charts on various stocks and companies in the market so you could almost do most of your research on the site itself. Even if you choose a site that does not have great research capabilities, there are comprehensive stock market information sites online, such as CNN and Bloomberg.

Self-investing is perfect for independent and motivated individuals that like to be very involved in their investments. Online self-investment companies are mainly a tool through which you can purchase and sell stock; therefore, you are in full control of your portfolio. Also, online services grant you the advantage of being able to look online and instantly determine how your stocks are doing. Such online self-investment companies generally provide their customers with constant, up-to-date information about the market so they can compete with the professional investors.

There are however disadvantages to self-investing that can make someone into an investment-firm believer. As already mentioned, investors have to perform all their own research, which can be time consuming. Also, it is generally harder to buy and sell through online companies than through investment firms. An investment firm would try to buy stocks at their lowest point in the day, watching the market for that low point. However, many online companies buy on a certain day and at a certain time each week, so you would not necessarily be buying the stock at its lowest point. Finally, investment firms value your hard-earned money: they earn money when you do. In all senses of the word, they are invested in your future. However, online companies are paid a flat rate whether your portfolio sinks or swims-there is no personal attachment to your money.

There are many things to consider when you begin to invest, but it is worthwhile to ponder your goals and how investing in the stock market will help you reach those goals. If you are budget-minded and like to be in control, self-investing may be beneficial to you.

Tip of the Month

Inspiration From a Recession

The stock market this past month hasn't changed a whole lot from the month before. There has been volatility, and even more volatility. We are starting to hear the 'R' word more and more often. The 'R' word, of course, is recession. Many investors feel we are not in a recession and we won't have one, while others say we are already in a recession and will stay there for quite some time. The great thing about being in the stock market is that you don't have to worry about whether or not we're in recession. You only have to worry about which way a particular stock will go.

Trading in these volatile times can be frustrating. The best thing you can do is be patient and wait for the perfect trade to come along, and then jump on it. Once you have a profit, you will want to protect it and maybe even get out of the trade. In a market like this, you just don't know what will happen tomorrow. Your trades in these conditions should be with the short-term in mind.

Even in these volatile market conditions, there are sectors sailing right on up like nothing is happening. A couple of these sectors are: semiconductor-specialized and agriculture chemicals. The semi-conductor/specialized sector has many 'solar' stocks within its list of stocks. The solar sector has been a very nice move lately, but that could all change tomorrow. The agriculture chemicals sector has been on the move for quite some time because of the large volumes of corn planted to make ethanol.

This month we would like all the stock students to sit down and think about what brought you into the program. Do you want to create additional income, a greater nest egg, or a new career? Once you know what brought you here, write down what inspires you to accomplish your goals. After you have these written, write down a commitment to yourself that you are willing to do to become successful. Place your notes in an area where you will see them each day. Live by these and do whatever it takes to reach your goals. The most successful people are those who have dreams, set goals, and do whatever it takes to achieve them. Check your goals each day and take any appropriate actions necessary to achieve them. Use your inspiration to achieve the goals you set for yourself upon entering the program.


*See the Elective Class Catalog in your Success Center for the latest dates, times, and class details.

May

Elective Class Schedule:

  1. Stock Elective Class Given by Josh Willis

    1st

    Time:
    5:00 PM (MST)

    Topic:
    Making Consistent Income Using Covered Calls

  2. Stock Elective Class Given by Jeff Yaede

    2nd

    Time:
    9:00 AM (MST)

    Topic:
    Technical Analysis

  3. 3rd

  4. 4th

  5. Stock Elective Class Given by John Leydsman

    5th

    Time:
    4:30 PM (MST)

    Topic:
    Stock Market Essentials - A Quick Start

  6. General Elective Class Given by Dave Mink

    6th

    Time:
    7:30 AM (MST)

    Topic:
    Business Organizations

  7. Stock Elective Class Given by John Leydsman

    6th

    Time:
    4:30 PM (MST)

    Topic:
    Economic Indicators and the Market

  8. Stock Elective Class Given by Josh Willis

    6th

    Time:
    6:30 PM (MST)

    Topic:
    Making Consistent Income Using Covered Calls

  9. General Elective Class Given by Paul Weaver

    7th

    Time:
    12:00 PM (MST)

    Topic:
    Revitalize and Activate Your Goals

  10. Stock Elective Class Given by Jeff Yaede

    7th

    Time:
    6:30 PM (MST)

    Topic:
    Technical Analysis

  11. Stock Elective Class Given by Jeff Yaede

    7th

    Time:
    6:30 PM (MST)

    Topic:
    Advanced Technical Analysis

  12. Stock Elective Class Given by John Leydsman

    8th

    Time:
    4:30 PM (MST)

    Topic:
    Master Market Changes Using Vertical Spreads

  13. Stock Elective Class Given by Josh Willis

    8th

    Time:
    5:00 PM (MST)

    Topic:
    Calls and Puts

  14. General Elective Class Given by Darren Hardy

    9th

    Time:
    6:00 PM (MST)

    Topic:
    Small Business Accounting

  15. 10th

  16. 11th

  17. Stock Elective Class Given by John Leydsman

    12th

    Time:
    4:30 PM (MST)

    Topic:
    Economic Indicators and the Market

  18. General Elective Class Given by Paul Weaver

    12th

    Time:
    6:30 PM (MST)

    Topic:
    Revitalize and Activate Your Goals

  19. Stock Elective Class Given by Jeff Yaede

    13th

    Time:
    11:00 AM (MST)

    Topic:
    Technical Analysis

  20. General Elective Class Given by Dave Mink

    13th

    Time:
    4:00 PM (MST)

    Topic:
    Business Organizations

  21. Stock Elective Class Given by John Leydsman

    13th

    Time:
    4:30 PM (MST)

    Topic:
    Stock Market Essentials - A Quick Start

  22. Stock Elective Class Given by Carl Anderson

    13th

    Time:
    4:30 PM (MST)

    Topic:
    Straddles and Strangles

  23. Stock Elective Class Given by Josh Willis

    13th

    Time:
    6:30 PM (MST)

    Topic:
    Calls and Puts

  24. 14th

  25. Stock Elective Class Given by Josh Willis

    15th

    Time:
    5:00 PM (MST)

    Topic:
    Making Consistent Income Using Covered Calls

  26. 16th

  27. 17th

  28. 18th

  29. Stock Elective Class Given by John Leydsman

    19th

    Time:
    4:30 PM (MST)

    Topic:
    Stock Market Essentials - A Quick Start

  30. General Elective Class Given by Dave Mink

    20th

    Time:
    4:00 PM (MST)

    Topic:
    Business Organizations

  31. Stock Elective Class Given by John Leydsman

    20th

    Time:
    4:30 PM (MST)

    Topic:
    Economic Indicators and the Market

  32. Stock Elective Class Given by Josh Willis

    20th

    Time:
    6:30 PM (MST)

    Topic:
    Making Consistent Income Using Covered Calls

  33. Stock Elective Class Given by Jeff Yaede

    21st

    Time:
    6:30 PM (MST)

    Topic:
    Advanced Technical Analysis

  34. Stock Elective Class Given by John Leydsman

    22nd

    Time:
    4:30 PM (MST)

    Topic:
    Master Market Changes Using Vertical Spreads

  35. Stock Elective Class Given by Josh Willis

    22nd

    Time:
    5:00 PM (MST)

    Topic:
    Calls and Puts

  36. Stock Elective Class Given by Jeff Yaede

    22nd

    Time:
    7:30 PM (MST)

    Topic:
    Technical Analysis

  37. General Elective Class Given by Paul Weaver

    23rd

    Time:
    11:00 AM (MST)

    Topic:
    Revitalize and Activate Your Goals

  38. General Elective Class Given by Darren Hardy

    23rd

    Time:
    6:00 PM (MST)

    Topic:
    Small Business Accounting

  39. 24th

  40. 25th

  41. General Elective Class Given by Dave Mink

    26th

    Time:
    7:30 AM (MST)

    Topic:
    Business Organizations

  42. Stock Elective Class Given by John Leydsman

    27th

    Time:
    4:30 PM (MST)

    Topic:
    Economic Indicators and the Market

  43. Stock Elective Class Given by Josh Willis

    27th

    Time:
    6:30 PM (MST)

    Topic:
    Calls and Puts

  44. Stock Elective Class Given by John Leydsman

    28th

    Time:
    4:30 PM (MST)

    Topic:
    Stock Market Essentials - A Quick Start

  45. General Elective Class Given by Paul Weaver

    28th

    Time:
    6:30 PM (MST)

    Topic:
    Revitalize and Activate Your Goals

  46. Stock Elective Class Given by Carl Anderson

    29th

    Time:
    4:30 PM (MST)

    Topic:
    Straddles and Strangles

  47. Stock Elective Class Given by John Worley

    29th

    Time:
    5:00 PM (MST)

    Topic:
    Introduction to Currency Trading

  48. Stock Elective Class Given by Josh Willis

    29th

    Time:
    5:00 PM (MST)

    Topic:
    Making Consistent Income Using Covered Calls

  49. Stock Elective Class Given by Jeff Yaede

    30th

    Time:
    9:00 AM (MST)

    Topic:
    Technical Analysis

  50. 31st

For more info