| Is investing in the stock market? |
|
|
|
|
|
Elmira Nancy
Preferred Member
Cash: $ 29.30
Posts: 148
Joined: 01 Dec 2009
|
| Is investing in the stock market? |
 |
|
I've been thinking of investing my savings in the stock market to make them grow. Is this a good idea? If it is, is it better to invest in expensive stocks that are almost sure to go up, or in penny stocks that are highly volatile?
non gamstop sites
|
Thu Dec 31, 2009 5:40 am |
|
|
Raptor
Full Member
Cash: $ 14.50
Posts: 70
Joined: 15 Nov 2009
Location: Missouri
|
My opinion: while I think there could be a down period midyear, if you are looking for long term investment, then now is not a bad time. As for picking individual stocks, that may not be the way to go for a new investor. If you are going to pick your own stocks and are just learning, go with large cap, less risk. Penny stocks, you are betting that the company will take hold, most do not. Most companies come and go. Also there is an industry that gets small private companies to go public; these individuals are normally paid in shares. They take advantage of the IPO and sell their shares for a great profit. They move on, but the company falls apart. Unless you know of a small company that you really think is going to make it, don't jump into penny stocks. Also day traders run these stocks up and down. Long term investment should seek out strong steady growth, not stock prices that are controlled by day traders and others looking for you to buy their overpriced shares.
|
|
Thu Dec 31, 2009 6:03 am |
|
|
oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
|
|
|
|
quote:
I've been thinking of investing my savings in the stock market to make them grow. Is this a good idea?
Yes. The two appreciating assets are stocks and real estate, they grow, on average, much faster than inflation so you build wealth. Conversely, a savings account or a CD is designed for safety, they grow at about the same rate as inflation. So you do not build wealth - you are paying for the safe storage of you money.
As for expensive stocks or penny stocks - no - those are poor ways to invest, the probable outcome is that you will lose your principal. Your return and your risk are proportional. So you want to take enough risk to grow your money. But avoid high risk that will cause you to lose your money and have to start over several times in your life. And avoid low risk because failure is certain, you cannot grow money at 2%. Like so many things, 'moderation' is the key.
Here's some math for a 30-year period -
$25,000 in a savings account at 2% = $45,000.
$25,000 invested at a moderate 11% risk level = $570,000
$25,000 in penny stocks at a 20% high risk = either $6,000,000 or zero. That is why gamblers love it, it looks like a get-rick-quick plan, everyone wants to hit a $6M home run - or win the lottery. LOL, but you probably won't.
Personally I choose 11% to 12%. When I was young I tried put/call options, corn futures, wrote covered calls, penny stocks - fortunately I came to my senses and quit those games - and then I became wealthy.
|
|
Thu Dec 31, 2009 4:17 pm |
|
|
chenshuiyang
Member
Cash: $ 4.00
Posts: 20
Joined: 31 Dec 2009
Location: shenzhen
|
you need to know more about shocks and get in it in the right time.
at the lowest time! then you can earn money easy..
|
|
Tue Jan 05, 2010 9:10 am |
|
|
mikem86
Member
Cash: $ 1.55
Posts: 22
Joined: 23 Oct 2009
Location: PA
|
As Oldguy said, a CD or savings account is good (if you want to build some interest with very little to no risk).
With almost any investment there is going to be some risk involved.
Whether you are investing in stocks, bonds, commodities, or even real estate.
I know real estate investors who lost ALOT of money because of the recession! They lost tenants, their property lost value, etc.
There are many good funds out there too, with all different risk levels.
For example the fund I work for, offers 2 types of investment strategies, their moderate/conservative and a more aggressive strategy for people looking for a little more risk.
Its ultimately up to the investor on how you want to invest your money and the amount of risk you can handle!
if you have any more questions feel free to ask!
Good luck
|
|
Wed Jan 06, 2010 3:33 am |
|
|
Daniel Webb
Member
Cash: $ 2.60
Posts: 13
Joined: 14 Jan 2010
|
| Re: Is investing in the stock market? |
|
|
quote:
Originally posted by Elmira Nancy
I've been thinking of investing my savings in the stock market to make them grow. Is this a good idea? If it is, is it better to invest in expensive stocks that are almost sure to go up, or in penny stocks that are highly volatile?
Despite the uncertain economic environment, there is a lot of potential for profit and growth for smart, disciplined investors who make use of proven stock trading tips and a good trading site. I would say that investing in stocks would be a good choice provided that you know how to do it right. You should find a stock trading system that is right for you. When looking for the best online stock trading site, you should consider:
1. Is it user friendly? A good stock trading system is easy to use and should have a very simple learning curve. Sometimes seconds matter in trading, so having a trading system that’s awkward or unwieldy to use can lose you money.
2. Word of mouth. What are your friends and other traders saying about stock trading systems out there. Hit up a few discussion rooms or bulletin boards before you make a choice of who to go with to avoid picking the wrong system.
3. Fees. It’s hard enough to make a profit these days without having it eaten up by system fees and commissions. Make sure you understand the fee structure and any extra or hidden costs before purchasing a system.
4. Tutorials. For starting investors, a good explanation of the various buying and selling options and other trading terminology can make a big difference and prevent a lot of newbie errors. A good trading system will provide a quick reference you can use to look up concepts that may not be familiar to you.
5. Results. How have others benefited from using the system. Can the system provide you with documented results of its success? If the answer’s no, you may want to consider another system.
Do your research, get the system and then get ready to get rich.
|
|
Thu Jan 14, 2010 8:04 am |
|
|
lancenicolase
Full Member
Cash: $ 14.40
Posts: 72
Joined: 02 May 2009
|
| Re: Is investing in the stock market? |
|
|
First thing first, you need to diversify your portfolio and do it right, you can read here on how to manage your portfolio; many traders and investors randomly buy and sell stocks without actually concentrating on controlling and maximizing returns of their portfolios.
Secondly, do you know what penny or unpopular stocks are? Why are they unpopular and kinda in demand? Visit https://www.independentinvestor.com/share-dealing/unpopular-shares/ and learn about penny shares and how to analyse and trade them.
quote:
Originally posted by Elmira Nancy
I've been thinking of investing my savings in the stock market to make them grow. Is this a good idea? If it is, is it better to invest in expensive stocks that are almost sure to go up, or in penny stocks that are highly volatile?
|
|
Thu Dec 02, 2021 8:20 pm |
|
|
vaduvala
Senior Member
Cash: $ 130.10
Posts: 665
Joined: 27 Feb 2018
|
it is safe to invest in the Indian stock markets; however, as with all investments, one must research and plan accordingly. Without proper research and planning, investors tend to make unwise decisions that eventually lead to losses.Investing in the stock market is one of the smartest and most effective ways to build wealth over a lifetime. With the right strategy, it's possible to become a stock market millionaire or even a multimillionaire -- and you don't need to be rich to get started.Many stocks pay dividends, a distribution of the company's profits per share. Typically issued each quarter, they're an extra reward for shareholders, usually paid in cash but sometimes in additional shares of stock.
what is a telecom technician? - Fieldengineer
|
|
Fri Dec 03, 2021 8:01 am |
|
|
Indirasecurities
First Time Poster
Cash: $ 0.20
Posts: 1
Joined: 07 Feb 2022
|
| Found best broker for stocks |
|
|
Very nice post, here i found best broker for stocks and got good benefits with earning in proper way
|
|
Mon Feb 07, 2022 11:26 am |
|
|
|
