Investing in natural gas companies is a smart money move today.
Investing in natural gas companies is a very smart investment move today. Natural gas companies that are well managed and focused are poised to be very profitable. The demand for natural gas will continue to go up over the next couple of decades at the time of this writing as people insist upon less coal dependence in order to cut down on pollution. Even the giant "Big Oil" producers are getting in on the natural gas game. It probably goes without saying that you want to have the best natural gas companies in your personal investment portfolio.
Instructions
Instructions
1. Open up an investment account if you don't already have one. One that can be highly recommended is the ING Sharebuilder account because it is very competitively priced, does not require any minimum account balance for its Basic plan and offers a wide range of important brokerage as well as banking services right onlin,e including real-time trading, automatic investing, margin borrowing and options trading. If you don't use this service, you should find a comparable one. Also realize that it's possible for you to hire a financial advisor or planner who can put you into a mutual fund that invests in natural gas companies.
2. Research natural gas companies' financial performances. Excellent online resources for this include the Motley Fool, MarketWatch, Smart Money online magazine and Yahoo! Finance. You want to pay attention to natural gas companies' recent (within last 3 months) news reports and press releases, earnings reports and earnings forecasts made over the last year, their PE ratio (Price-to-Earnings ratio), their stock price chart going back over at least the last three years if possible and the informed opinions of financial investment professionals who research or have holdings in natural gas companies.
3. Select the natural gas companies that are strongest to you based upon the criteria just mentioned. You should select anywhere from two to 10 of them so that you diversify your portfolio. Take your time with your selection process. Make only the most careful of choices. If you don't know build an image of a company in your mind based upon the mentioned criteria, you have to learn about these investing terms first. You can sign up for the Motley Fool or talk with a financial planner or advisor to help you learn if you need to.
4. Place an order for a certain number of shares in your chosen natural gas companies through your online brokerage or by calling your broker. As long as you have the money in your investment account to cover the cost of the stock shares and all fees and commissions, the order will go through and you will then own that number of shares in those natural gas companies you think best to own. (You won't do this if you go with a natural gas company mutual fund; instead, you'll write a check and give it to your financial agent.)
5. You can make money on natural gas companies
Watch the performance in the stock market of your chosen companies by checking up on them on the Internet at sites like MarketWatch and Yahoo! Finance. Do not be too quick to sell one off if it starts doing poorly. You must know your financial risk profile and your short, intermediate and long-term financial objectives in advance of investing. If you are unable to assess these things for yourself, you have no choice but to seek professional guidance with this. When and if one of your chosen natural gas companies has its stock price go considerably higher than the price you paid for your own shares, you may consider putting in a "sell" order in order to lock in your profits. The shares will be sold because institutions called "market makers" will guarantee it.
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