It’s common for those who start out with a basic stock portfolio to decide to grow it at some point. Perhaps you’ve already started to see the sort of returns that have been recorded on the Dow Jones or other stock markets over the last few years, or maybe you’ve recently had a pay rise and want to increase the amount of sector coverage and dividend income you will have during your retirement. Whatever your reasons might be for improving the size of your stock portfolio you will need to think carefully about how you go about it. This article will suggest some of the ways in which you can develop your stock market investments.
Speak to a broker:
Traditionally, the only way to invest in stocks was to use a broker. And while the rest of this article will outline exactly why that’s not necessarily the case in the modern age, there’s definitely an argument to be made for using professional services in some cases. Brokers have solid market knowledge and are able to match you to the sort of risk profile and sector-specific stocks you’re looking for. Also, some investors prefer to use a broker for reasons of legitimacy and safety.
The downside of investing via a broker is that it takes time – and it can be prohibitively expensive. There are lots of cost-effective Internet-based alternatives available when it comes to the resources you need to build a stock portfolio. A broker might be able to advise on the ideal time to open a stock market position, say, but this information is often also available by using a stock events calendar available from a reputable online provider.
The rise in derivative products has led to the nature of many stock portfolios changing quite dramatically. Contracts for difference, or CFDs, are derivative products which track the underlying markets without actually giving you ownership of the stock in question. The main advantage of CFDs over traditional stocks is that they’re easier to access, and don’t require as much up-front time investment: accounts can be opened easily, and they’re not as scarce. So, if you’re looking to boost your portfolio quickly, CFDs might be the way to go. And it’s also easier to integrate leverage with these products, which can make margin trading simpler and more accessible than typical stocks and shares.
Growing a stock investment portfolio isn’t an easy task. It’s something that even the most seasoned investors still have to think carefully about before pressing ahead, and it’s also something that doesn’t come with any guarantees! But there are plenty of strategies you can use if this is something you want to do. Whether you choose to hire a broker, do some online research or move sideways into the world of derivatives, you can expand your exposure to the stock market in a number of different ways.