How risky is it to invest in the stock market, in hoping to reap benefit?
03
Apr
Posted by: admin in: Investing
Joshua asked: I have a lump some of money that I want to invest into the stock market, but im a bit nervous about it. I want to invest and pretty much be sure im going to capitalize off of it, not loose it all and be vary upset.
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6 Responses
chaz
04|Apr|2010 1play poker online
risky if you dont know what your doing. ive been demo trading for a while with much sucess i just dont have the money to invest ):
i sugest you try it as well before you invest money. But theres always safe companies to invest in dont know if youll make all that much money right away though.
financegal27
05|Apr|2010 2collectible webkinz
It depends entirely on your time horizon and your expectations. In general for investors investing for the long haul (10+ years) the stock market is almost always a winning investment, but it is volatile and its important to be aware of that and keep a level head. You will sometimes lose money in the short term, but remembering to see those blips are opportunities, or being cognizant of the big picture is important. Being a well read and informed investor is the key.
On the other hand investors who day trade or invest in penny stocks without being knowledgeable and not having access to sophisticated tools will lose money far more often then they win because they are essentially gambling. Investors who trade on emotion also fail because they tend to buy at the most inopportune times and sell into downturns. The Wall Street Journal has a great article on emotional investing today that’s an interesting read.
The key is to be informed, to stay informed, and if you can’t be then you should hire someone who is, whether that be by purchasing a mutual fund, or opening an account with a firm and using the tools and advice provided by firms like Schwab, Fidelity, and TDWaterhouse, or a full service financial planner.
Tradeforriches
06|Apr|2010 3trade silver
This is a very interesting questions. The absolute 100% correct anwser to this question is it depends on who is doing the trading.
It is risky for someone with poor trading abilities to trade in the stock market. For me I am an expert trader so I make profits trading all the time so for me there is no risk. If you know what you are doing when it comes to trading you can profit all the time but if you are not very good at trading you will lose all your money. My advice for you is to get with someone who knows how to trade really well and have them recommend stocks for your to buy. Good Luck.
charles
07|Apr|2010 4phone ringtones
Investing in the stock market is always a risk! Why? Simple: One can lose his/her money!!!!
ets_bond_trader
07|Apr|2010 5funny fortune cookies
You’d be a fool if you didn’t at least take a look at what they’re doing at:
These folks are up over 40% this year, and they put real money on all their picks. The newsletter is FREE too!
vvswarup
10|Apr|2010 6start an online business
First of all, positive returns are not guaranteed. The stock market is very risky. However, if you invest properly, there is a good chance of making money. First of all, do not invest in the stock market expecting to see your small sum of money turn into a pot of gold in a short time. That is not how the stock market works. Long-term investors are rewarded.
Also, I recommend reading literature about investing:
“A Random Walk Down Wall Street” - Burton Malkiel
“Security Analysis” - Benjamin Graham and David Dodd
“The Intelligent Investor”-Benjamin Graham
Then, apply the techniques and concepts discussed in these books to select good stocks to invest your money.
Also, I will warn you that you will not always see gains. There may be periods of losses. I speak from personal experience. However, just because you see a period of losses, it does not mean that you should sell. It is important to keep an appropriate time horizon in mind when looking at trends in your investments. This will help put day-to-day changes in share prices into the proper perspective.
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