Keep your axe sharp.... that was the best advice I ever received.
People say that you shouldn't blame your tools. I agree, having the wrong tools is your fault! (So don't blame game them!) I'm no suggesting you have the state of the art. You just need the basics to help you with investing. I'll share with you the basics.
Investment Tool #1
Invest some good money in a decent computer. I used to use Dell with Windows. However, I've switched to Mac - and won't be turning back. Macs' are costlier upfront - but they're more stable and reliable. The only thing I really miss was Excel. However, there's a way around - get yourself VMWare Fusion and you can run Windows environment on your Mac (with Microsoft Office)! Whatever... get a good and reliable computer. Period.
Investment Tool #2
High Speed Broadband Internet Connection. Don't skimp on this. I'm not suggesting you go for the 21Mb connection - a 1 Mb will do just fine for starters. But don't skimp here. You need to be connected - both from the point of view of researching, trading and investing. If you have a faster connection - you can stream information via the various news channels straight to your desktop. No need to pickup the remote for the TV and get distracted.
Investment Tool #3
Get a simple BIG calculator. Yes, I know that sounds stupid - but before I tell you about the remaining tools, you just need one. Simple calculations without the need to move a mouse is always good.
Investment Tool #4
Buy a spreadsheet program. If you're on Mac - you have Numbers, if you're on PC - you can opt between Microsoft Office (preferable) or Open Office. Whatever you chose - get familiar with the programme - the time you spend getting to know your software will save you countless hours! I use spreadsheets to keep a track of my portfolio, conduct analysis of financial statements, asset allocation, seeing the returns (and losses sometimes). This is going to be your key tool.
Investment Tool #5
Online Discount Brokerage. How else are you going to put in those trades? Oh, yes you can call your broker - but our objective is to do everything ourselves as far as possible and save money. The famous ones include TD Ameritrade, ETrade and ThinkOrSwim (which is now acquired by TD Ameritrade). You should have both web-based trading screen access as well as any downloadable software. I use ThinkOrSwim - although its mainly meant for traders - I learn alot from it and find it easier and faster to use.
Investment Tool #6
Research Sites. There are plenty of sites out there. But I only need a few of them. And the ones I use are free. Google Finance is a real great site. Highly recommended. Yahoo Finance has always been a favourite for many - but I prefer Google, they also have screening tools, excellent graphs, links to news articles, blogs, portfolio, watchlists, financials - the works.
Investment Tool #7
If you don't search for your own investment ideas - you need a good option to receive regular flow of research. Subscribe to the best independent research firms out there. (I use The Oxford Club, EquityMaster, Personalfn, KirkReport and Weber Global Opportunities).
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