Types of Stocks to Trade Online on NASDAQ or NYSE?

Posted by Grace under Investing on February 27, 2015

Do you want to know the types of stocks to trade on NASDAQ or NYSE? When doing online stock trading, you must know which types of stocks you want to buy and sell. There are different types of stocks that even an ordinary stock market investor and stock trader should know. One of the most popular types of stocks is blue chip. Before we continue discussing this topic, maybe you want to know first the basic online stock trading guide and the best trading platform online.There are many investors who rely to blue chip stocks because they know these types of stocks are stable and can give the investors a great return on investments in the long run. While some investors preferred to buy growth stocks whereas these types of stocks can give the investors a solid earnings. On the other hand, the income stocks regularly pay dividends.

Which stocks is the best to trade on NASDAQ and NYSE

Types of Stocks | Photo Credit: Dick Thomas Johnson Under CC 2.0

Types of Stocks to Trade on NASDAQ or NYSE?

Blue-Chip Stocks. These are the oldest and historically most profitable companies. The vast majority of the 30 Dow Jones Companies Stocks are blue-chippers.


Growth Stocks. These are stocks that the experts consider to have the best potential for solid earnings. They usually don’t pay dividends because they reinvest their earnings for growth.

Income Stocks. Income stocks are stocks that regularly pay dividends. These are typically entrenched companies with substantial earnings. The stock prices of such stocks usually move glacially over longer time periods.

Citations and Reference: Brian O’Connell, Author, Build Your Own Mutual Fund: How to Use a Personal Portfolio to Take Control of Your Financial Life, 2004 Adams Media, Avon Massachusetts, USA. p.84

In my own idea, I would prefer to buy blue chip stocks that regularly pay dividends. This simply means, I should have blue chips and income stocks in my portfolio. What about you? Which types of stocks to trade on NASDAor NYSE do you prefer? Are you comfortable in buying growth stocks wherein the earnings of the company are reinvest? Are you an online stock trader or a stock market investor doing dollar cost averaging? Share your point of view about choosing the best stocks using the comment box. Thank you!

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