As a new investor and with the current state of the United States economy, my investment objectives will be centered around a significant level of capital appreciation, as well as marketability, liquidity, and a substantial level of safety. As a college student, I will be looking to analyze and invest in stocks that I will be able to hold for many years and that also provide growth. I will reinvest dividends that I earn back into my portfolio to purchase additional securities that will add to the growth and diversification of my portfolio. Day- to- day fluctuations in price will not affect my opinion of any specific securities, but if a stock shows constant decline over a long period of time, I will be forced to reallocate my assets into different, superior performing securities. With the emergence of new technologies, many securities will lose value and many securities will gain value. Tesla Motors has gained as extraordinary amount of value over the last two years, from a gross profit in 2011 of only $61,595 to a gross profit in 2013 of $426,262, because of newer technologies and changed cultural values due to the excessive decline of our environment.
My risk tolerance will be relatively low compared to other investors due to my long-term outlook and need for safe capital growth throughout the remainder of my life. Therefore, I will be focusing on lower risk securities that still offer significant capital gains, although the gains will not be as high as shorter-term, higher yielding securities that come with greater levels of risk. As to the types of investments that I am interested in, I will be focusing on common stock and safe money market securities, as well as longer-term bonds to diversify my portfolio and ensure a substantial level of safety for my money.
I will be using Scottrade as my brokerage house to control my investments. In regards to their pricing, Scottrade charges $7 per trade on stocks and ETFs when done over the Internet,