How to Manage My Money From My Stock Portfolio Investments

You need to manage your money correctly especially if you have made some capitol gains. Your investments can bring you some peace of mind but you need to protect them without taking any crazy risks.

Instructions

1. First do not worry about keeping up with inflation. There are to many factors that go into inflation so its not worth your effort to worry about it. You should look at returns of 10% or more when inflation is high. Minimize your overhead and look at ways to reduce your investment risks. In bear markets and high inflation cash is king. Keep a large percentage of your investment portfolio in cash during these times. Always take a look at your investment holdings several times a month and manage your money accordingly.

2. When managing your money don't trade or speculate you can't out think the markets. If you have a dividend reinvestment plan at work use it to invest in the markets. You should consider selling your stocks if the economy is growing after a year or so and take your profits. The same is true if inflation is slowing and your profits are up its time to sell and make some money. Be patient you can't have to much cash in a recession look for interest rates to fall this will jump start the markets and it will be time to buy depressed stocks.

3. Make sure you look at the bottom line and the P E ratio (price earnings) for long term investments. You need to be a efficient money manager since its your money that you are investing. You need to look for a average return of 10 to 12 percent a year at the bare minimum. Make sure to set some goals on how much money you want to withdrawal and how much you want to keep in you trading account.You can also look into having your money in some type of IRA that you can trade out of. That way your money will gain some interest. Many different brokers offer this type of service.