- Energy:
- Finance:
- Healthcare:
- Technology:
- Transportation:
The help will be greatly appreciated.
How exactly to make money in the stock market?
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Karan
this site contain all of your answers http://equitycommodityballeballe.com/
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◄|| G ||►
There is allot of gambling involved in stock trading unless you have some inside company information but that’s illegal.
Some experts say that there are patterns and historical data that follows certain events, for example particular period during summer time a lump occur in which stock are expected to slide. Those are expected speculations and many specialists follow those events. However there is still a large risk involve.
Best method is to have patience, buy low sell high and repeat. -
ptrckcharger
Buy low sell high.
Watch the market and wait for stocks to lower in price. Buy those stocks and wait until they go up again and sell. -
Raysor
Er, you buy a share and if it goes up you sell it at a profit. Not rocket science.
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elo2joe
In my opinion Lloyds bank is a good buy at under 70p.
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Danish Sardharia
you just visit http://www.worldstockx.com. there u will find the answer of your question, there u find articles about stock market.
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peaceandlove
The first step in knowing how to make money in the stock market is knowing how not to lose it all.
If you ignore this one rule, you’ll lose all your money in the stock market and become one of those bitter skeptics that complains that the stock market is "rigged".
Go for small daily and weekly gains, not big gains.
You should never buy a stock because you think it is going to be a HUGE winner.
Rookies focus on how much money they can make. Professionals focus on how to limit losses.
It is amazing how quickly your trading account will build up over time just by making a little bit every week.
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Kanchan
Invest in stocks that are often ignored but are most probable to give you long term returns.
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zuma
buy fundamentally strong stocks, which are undervalued.
undervalued for any number of reasons,.. -
Saroj
sdfsdf
Is stock investing online a good way to make extra money?
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Mugen
Long term, yes – it is one of the best. But short term it is far more risky, in fact it is more speculating than anything else – which is very hazardous, and most people lose at. If you want to supplement your income, then look into some bond funds. Government bonds are safer but now pay very little – look into something like Corporate grade investor bond funds, or High Yield Corporate bond funds. Bonds are much safer than stocks, and better at stable income production. Like everything else though, more reward means more risk.
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IndigoLizard
I would say that stock investing is a terrible way of making extra-income. Investing is good, but it doesn’t generate steady income every year.
There’s a bit you have to learn to be any good at it. To be any good at it, you have to do lots of research. Research takes time, and to do it properly it is a part-time job.
If you’re dumping money blindly into some mixed-fund, like a mutual fund or an ETF, in theory you make money if you’re willing to wait 20 to 40 years to take it back out. Will you make enough money 20 years from now for it to be worth the investment? Hard to say.
If you’re expecting to put money in the stock market and pull cash back out every year, that’s just not going to happen. You might have one or two good years, but when the next crash happens you’ll panic, then sell, and have lost more than what you gained.
If you’re really rich and can find a good hedge fund manager that has proven results, then that can be a good way to go. Usually takes a few mil before you’re rich enough to get into hedge funds.
I would say that if you have 50,000 or more in cash sitting around in a bank account doing nothing, yes you should figure out a way of investing it. Until you have that, it’s probably better just to save money.
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Chris
Stock investing is only one of the options for investors. It can be quite profitable if you do understand what you are doing.
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Common Sense
Stock investing is a great way to earn extra money. This would actually be short term investing or swing trading (holding a position for a couple of months, weeks or less). The shorter the holding period, the harder it is to make consistent money.
Success in this type of trading can take 3-5 years to learn (if at all).
http://joefahmy.com/2010/03/17/recommended-reading-list-2/
http://www.chrisperruna.com/2010/01/10/2010-stock-reading-list/ -
muncie birder
It can be, but in some cases it is not. Usually, investing is done as a means of accumulating capital although there are traders that do on line trading in an attempt to generate extra income. Some do and some do not. I suspect that there might be more that do not than do. I am certain that there are innumerable other ways to make extra money, but on line investing is the one I use.
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zuma
It would start as hobby, and hopefully progress to something more..
It depends on the person,..there’s some folks just not cut out for the up’s and downs of it..
Your Patience to stick with a Plan..a good plan..Try Paper Trading..
How do I learn the Stock Market as a teenager?
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ChrisL
Start reading books like Investing 101. Hope that helps bud.
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Ted
Start reading. Start with Investing for Dummies and Random Walk Down Wall Street. Expect it to take years to get good. It’s a profession like any other.
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Kelly
Don’t let the complexities of investing keep you from getting started. all you really need to know are the basics, which are covered in this article, including where to find money to invest, how to choose an investment, and finding information about investments.
How can I become an expert in investing & stock market?
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Ted
Read. Start with Investing for Dummies and Random Walk Down Wall Street. Look at your local book store. Expect it to take years. The people who are on the other side of the trades are professionals who have spent years learning their trade.
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Steve D
Head to your local library, ask the librarian for the investment section…even a small library will have a few dozen books on investing (plus there is inter-library loan). Head to the web site of the SEC – they have a ton of good tutorials.
And just so you know, you will make mistakes – everyone who invests does…the goal is to make fewer mistakes than correct guesses.
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None
School have to spend money to make money I wouldn’t trust books they sometimes can be misleading
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underexposed...
it will take years of study and practice…use forums. newsletters and on-line mentors at your peril. At present you have no way to judge good from bad advice from these sources…there are many books on the subject…go to the library and start reading and try to put into practice what you read….along the way forming a strategy of your own.
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John
Yup, it’s all in the library
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Raysor
Same as you get to be an expert in anything! Read, read, read. Ask questions. Think. Experience.
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Kelly
In the investment business, paper trading is how we all start. Pick a couple of companies, make a note of their price, the date, the reason why you want to buy them and then start following the stock.
Do you think value investing is the best way to invest in the stock market?
But I think value investing is very good as well.
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John W
That and asset allocation, one of the primary concepts that Ben Graham states in his book "The Intelligent Investor" is to rebalance a portfolio of about 45% equity and 55% bonds, he says to go no lower than 25% equity and no higher than 80% equity. Markowitz’s Efficient Frontier says that 25% equity 75% bonds is the safest portfolio, safer than a 100% bond portfolio and has better returns and that a 50/50 portfolio has the same risk as a 100% bond portfolio but much better returns. Claude Shannon at MIT calculated that the optimal between a random walk as a stock and cash was 50/50. There are reasons to be more aggressive but the premise is that asset allocation portfolio balancing assure buying low selling high.
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deepalam
Absolutely. When you say that many people like to trade or focus on growth, ulyou aren’t going far away from the idea of value investing. Value investing basically focuses on trying to figure out if a compnay’s stock is undervalued or overvalued. Using this method, the intelligent investor would be able to figure out whether a stock would increase in value or decrease in value. Usually, growth results in a increase in stock value, which puts the investor in a position to sell a stock. Value investing, however, works with all companies, not just ones that need to experience growth. In my opinion, value investing is a nearly cool proof way to make good investments.
What Will happen to the stock market and 401ks if obama increases the capital gains tax?
I have to pay them this year, i made about 200.00 from stocks this year.
I have to pay them this year, i made about 200.00 from stocks this year.
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Wounded Duck
You DO realize that less than 1% of ALL Americans pay Capital gains at all, don’t you.
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Cris Ray
The market will take a hit an people will start buying tax free investments costing the Treasury a bundle.
Where can I find evidence of Algebra, Geometry, or Calculus used in the stock market?
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vekkus4
Hello
It reminds me of an answer I wrote a few days ago about a forward moving average.
When analysts attempt to develop a forecasting model to figure out how stock prices are going to change in the next few days, one of the techniques is something like this
Hypothesize that a given curve A from stock measurements are going to predict a target curve B. These are both functions of time.
Draw the graph of A and the graph of B
Next see if you can translate the graph of A so it fits the graph of B at a later time.
A(t) is one function of time and B(t) is the function to match it with.
One thing to talk about is how to measure the goodness of the match. This has geometry in it somewhat. It can lead to least squares which is geometrical in a space where the dimension is the number of points where it the curves are compared. This can get you towards Hilbert spaces or Banach spaces somewhat too.
There are different metrics to compare the curves. Absolute value of the difference, maximum difference, mean square difference, and other averages can be used.
Obviously you want to translate the graph of A forward, A’(t) = A(t-d) so for example if d=2 A’(2) = A(0) so the graph of A’ is the graph of A shifted forward two days into the future.
For me the thing that I could never figure out, if you try to google for stock market data you get a lot of nonsense and not very much stock market data – you might have better luck, or ask a reference librarian or something. I read recently a lot of macroeconomic data was made available in 2007 that was not available before that, due to the professional economists collectively making a big mistake of some kind (housing market I believe).
What are advantages and disadvantages of investing in mutual fund?
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Topstep Trader
Advantages
1. Diversification
2. Professional Management
3. Convenience
4. Liquidity
5. Minimum Initial InvestmentDisadvantages
1. Risks and Costs :hanging market conditions can create fluctuations in the value of a mutual fund investment.
2. No Guarantees
3. The Diversification "Penalty
3. Costs. -
Ramesh
When you invest in mutual you are buying the units or portion of the mutual fund and thus on investing becomes the shareholder.There are top AMC’S which help you to know regarding this they are Reliance mutual fund,HDFC etc.
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Naveid
The advantage of buying a mutual fund is that if the company is in profit then you get too good returns.
Now when you buy a MF then it means that you are like a shareholder, and the risks involved in holding shares comes in MF also,
Which means if the company is in loss than you will also lose a big amount of your investment.
So if you invest in good company then you are in profit. -
mrbarrakodrama
one disadvantage taxes.
How is the stock market important to canada ?
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Kelly
Investors can purchase Canadian stocks and bonds in a couple different ways. Canadian stocks and bonds can be purchased directly on the Toronto Stock Exchange, Canadian National Stock Exchange or other Canadian stock exchanges. Or, investors can easily purchase many Canadian stocks and bonds through exchange-traded funds (ETFs) or American Depository Receipts (ADRs).
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Pari
A securities firm is classified as an agent when it acts on behalf of its clients as buyer or seller of a security.
The agent does not own the security at any time during the transaction.
Stock investing is a great way for Canadians to build wealth, but it can have its pitfalls.
This list spells out the essentials every stock investor should remember.
You’re not buying a stock; you’re buying a company.
The primary reason you invest in a stock is because the company is making a profit.
If you buy a stock when the company isn’t making a profit, you’re not investing — you’re speculating.
A stock (or stocks in general) should never represent 100 percent of your assets.
In some cases (such as a severe bear market), stocks aren’t a good investment at all.
A stock’s price is dependent on the company,
which in turn is dependent on its environment, which includes its customer base, its industry, the general economy, and the political climate.
Your common sense and logic can be just as important in choosing a good stock as the advice of any investment expert.
Who pays what what when investing in a house with a partner and one person lives at the property?
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Landlord
You invested in a condo? Good luck with that one. Of course you did not invest all that much, not much to lose.
It is rp to the investors how they want to handle it. Since payments will not pay down principle for years I would say the one living there pays the mortgage 100% and any upgrading (waste of money in a condo) would be split 50/50 Tax deductions split 50 50
Unless you are the one living in the condo you should refuse to do this. You will be just flushing your 15k down the toilet.
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taco
whoever occupies the residence should pay for all the upkeep and modifications. Who ever resides there should also be making a payment close to what the house would lease for as they are living there. The other partner if this is a true investment should make a contribution to match the difference in the lease payment and the mortgage:
Investor 1: Pays Lease $1000. actual mortgage :$800= surplus $200
Investor 2: Pays matched surplus $200.
Actual Mortgage Investment Payment $1200There are no laws on how to invest with a partner, just a whole lot of people who will tell you not to.
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Jo
That should be an agreement between the partners. There are no "rules" for that.
If each is putting equal amount down and expect equal amounts when sold – then everything else should be equal as well.
If one is living there – possibly the reasonable amount of rent could be deducted from that partners share.
However, it’s best to keep in mind that if one is living there – there is less chance of vandalism – so that might be worth something. And whoever is living there is doing so temporarily and will have to move and pay moving expenses.
The partners should agree to all of this in advance – in writing – so there are no misunderstandings and hard feelings later.
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Bradleyj
Agree, no hard and fast rules – but generally I would expect the person living in it to pay for all the upkeep.
How to invest money in the stock market?
Thanks so much!
I was planning on reading a book, i just wanted a general guideline from people who answer questions on here. I thought that was the point of this fucking website.
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Angry Bird
Do not skip reading a good book !
This way you can know all the basics such as
what are mutual funds, etf’s, bonds, stocks, etc.These books are easy to understand.
And if you try to learn all this on the net, you’ll just find yourself re-reading the same information over and over again. A waste of time.
The book will also have a chapter on different brokerage accounts with details on minimums and commission costs. -
Martin
Have you thought about investing money in a managed forex service. I started at the end of October last year. I have made a website about the returns I am getting. You don’t have to do anything. The traders do all of the work for you. The returns are fantastic. 10,000 dollars invested 4 years ago would now be worth over 240,000 dollars. 9.16% monthly returns over 4 years is the average. Even half of that over the last couple of months has meant I don’t have to go to work anymore.
Check out my website if you are interested
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I Like Turtles
Let me get this straight. You are too lazy to pick up even a simple book and read it and you want everyone on YA to tell you EVERYTHING on how to invest. Man, you better pray for great luck because you are going to lose your ass in the market. Investing takes work and the willingness to learn. Being a lazy slackass won’t work.
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Jasmin
Best way to invest regular every month in stock market you never loss your money another option is mutual fund SIP it’s give higher return in long term.
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Raysor
The problem is, as a beginner, you don’t really know what to ask. The best way is to read a basic book on investing. Then ask questions. A forum is probably better because once you ask a question the answer throws up more questions! Plenty of good forums, this one is UK based but it’s ll fundamentally the same. http://www.shareworld.co.uk/index.php/forum/
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muncie birder
Go to your library and see if they have a copy of "Investing for Dummies" That book will get you started. You can also get a copy from Amazon, I think.
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Buzzingstocks
Read Book on "Art of Stock Investing – Indian Stock Market" @ http://bse2nse.com/archived/3185-book-art-stock-investing-indian-stock-market.html
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Stock Trading Warrior
You’ll need to pick a stock market strategy, know how to find good stocks, determine the general market trend, figure out how much to invest in each stock, have a written out plan, know when to get out of a stock, track your progress and have an account with an online stock trading broker.
You’ll basically need to create your own stock trading plan to be really successful. Once you have your system in place all you have to do is follow it which can sometimes take some discipline.
How does compound interest grow even though you stop investing more into it?
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D J
Compound mean put together, so it is putting the interest you gain one month together with your principal and then next month your interest is higher because you have a larger principal. so on and so forth.
GL
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Mike Michael
the interest is added to the principal at set times
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John W
It’s called exponential growth. The sooner you start the better off you’ll be. You can’t catch up later in life just cause you’ll be making more.
How do you invest money in the stock market?
How do you invest money into the stock market?
Are there any qualifications? Do you have to be a certain age?
Thanks!
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Kelly
Hi Friend now days there are number of commodity market site. which provide you share tips but as a fresher you have to choose which site is batter the one who will help you so this I can recommend you
http://www.commoditytips.com/ as this is the same site which i am using for getting helpful information. -
pasta fa zool
Send the money to me and I’ll make sure to invest it for you.
Only kidding of course. I believe you have to be 18 yrs of age.You can invest in various ways at a commercial bank, a brokerage agency, on the internet (e-trade etc.).
There are brokers in franchised agencies all over the USA.
there are different types of investments, such as commodities like oil, produce, pigs & businesses like you see at the NYSE (New York Stock Exchange).
Buy the Wall Street Journal & see if it makes sense for you.
A lot of people got rich over the course of the past 200 yrs of the stock market in America.
More got rich than lost money, but essentially it is gambling on a business & better than horses or craps or Las Vegas. -
Pari
Investment is a concept of restoring the money via purchasing of assets, lending loans and fund terms with well planned expectation on favorable future returns.
We can find a variety of investment options that can support you through the money handling process that secures your future in making profit.
Understanding the basic concept and analysis on the investment plans available followed by implementation of the investment strategies make great proceeds on drawing returns.Mutual Funds……………………
Mutual funds are collective investments undertaken by commercial entities.
They collect funds fro m individual and institutional investors and invest them in various stock options.
Mutual funds are also less risky when compared with stock markets.
Is it possible to make money investing in forex?
thanks
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Mary Thomson
In everything we do, we earn money because we know how. And to learn how, you should study. more or less 95% of all new traders fail especially in the first 12 mos because they just buzz in the market without really having a no how. If you don´t have enough knowledge, it is more likely that you will lose but if you know what you’re doing and best – experienced with it, then you will most likely win! but it can never be an always win trdes but it’s nice to have a high percentage of a win over lose.
Read some magazines, online news (but beware of any scammers that only links to their affiliate sites), or watch videos from http://youtube.com (anywhere). Also, there are a lot of free demo accounts where you can try a trade exactly like a live one (but of course there are a difference between a live and a demo, and one factor is your emotions). I use these: http://exeliafx.com, http://forexvps24.com
after your demo, trial and error experience… see if you earn pips (at least 50 then you can try to go live)…
Good Luck to you.
btw, here’s a forum, great for beginners: http://forums.babypips.com/
here’s another one (so you can ask expert traders there for further queries): http://www.forexfactory.com/forum.php -
Eddie W
You can make or lose money investing in anything. The currency exchange rate fluctuates, the traders are taking the advantage of the fluctuation to convert from one currency to another.
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Dave W
It is possible to make money trading currencies, but it’s also possible – and more likely – that you’ll lose money doing it. If you know a lot about world politics and finance and are good with math so you can always understand the risk you’re taking in any trade, maybe you would do OK. If not, my opinion is that you’re more likely to lose money than to make it.
I have significant experience in investing in the stock market, but I avoid currency trading. I think the risk is too high and the knowledge needed to be successful is more than I have.
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Rajan
Definately u can make a profit by buying currency at a lower rate in one county and selling it in another which is called as arbritration . Then r certain books on foreign exchange please refer those books to learn foreign exchange
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Edmund Peh
Trade with a reasonable stop loss or risk a fixed amount of money. Forex or any other financial instruments are used as a form of risk transference. When you risked your money, there is a certain amount of profit that is expected.
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revsuzanne
It isn’t a company… it is Foreign Exchange. You trade currencies.
Right now, there is no longer a currency safe-haven because the last one disappeared when the Swiss decided to peg their currency to the euro.If you have money to invest, by all means, purchase physical silver and gold and store it yourself.
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Ron Corporon
It is very difficult to make money from forex trading. Even the professional hardly make it. (very few forex mutual fund exist)
It is very difficult to predict the behavior of currency exchange because they are so many factors affecting the currency movements (economic, behavior, speculation…).
On the internet, a lot of company are proposing you forex trading, saying you can make a lot of money and so on. It is scam, these companies make a lot money on transaction fees. -
Jeremy
It is possible but you have to study a lot (a really lot) to become a successful trader able to earn money on Forex. You have to understand the basics and probably from the beginning you won’t be very successful but it’s only matter of time.
You can find some related information here: http://www.wheretoforex.com -
M.Rabea
Well, it’s not impossible
Trading Forex requires a specific set of skills and experience that is not easy to acquire.You need trading skills, money management skills and skills to control your emotions. For you to be successful and make money trading Forex you are required to spend some time reading and learning all you can about this business. At that stage please don’t buy any fancy products or robots because they never work. All the information is available out there for free just search for it and you will find plenty of material.
Test your skills regularly on a demo account, make that demo funded with only $2-$5k so it feels real when you trade on that account. Once you have consistent results for at least 6 months then you can start considering trading with real money.
Another way to go is to hire a professional Forex trader to manage your account. You will skip the learning curve and you can start making money right away just make sure that the account manager or the expert you pick is a real expert.
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Hitesh
Yes it is possible. But only if you treat this as a business not a get rich quickly scheme or gambling.
Forex trading or in fact any type of trading like Stocks, Commodities or Energies have to be done in a professional way i.e. we should have the following qualities.
1) Self Control like Patience and getting control over our Emotions.
2) Money Management.
3) Properly build Strategy with Back tested results or Tried Successful Paper Trading.there are many more but these are the pillars to get success.
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rpu
yes. definitely. U have to use your brain though. Use a forex trader who provide a chance to practice and also a little amount to invest in the real market before you use your own money. I know only one such provider. In other providers ask more and more complicated things never give anything to invest in real market.
http://www.marketiva.com/?gid=40309
marketiva is the best forex trader available and it also offer 5$s free to do live forex trading. And 10,000$ to prctice in demo account. And do not forget to veryfy your account by providing necessary details ! -
Andy elle
It is not a company, there are many different forex brokers, some which will be suited to your needs more than others. As you have very little understanding of forex, I would suggest that you do not even attempt to open a real trading account. You would be best suited with a broker like eToro, their speciallity is for new traders and their pla.tform is not over complicated. Another plus side is that they have an unlimited demo account, which would be a major bonus for someone with such little experience
I want to get started in investing and stocks. Where can i go to learn?
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Kenny
The term ‘Stocks’ is what the companies are referred to as that you can buy ’shares’ of.
It is a very risky business so it is a good idea to practice trading in a virtual stock market game first. This way you can get a bit of experience and learn what you are doing before risking any cash.
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IHAVEQUESTIONS
School…
Be warned, a common misconception is that investing in stocks is essentially a way to get rich. This is pretty much never the case. You should only invest in low-risk stocks, such as Canadian banks, that pay good dividends. Don’t go investing in some company with "potential", as this is an easy way to lose your money.
Investing in stocks is simply about saving to maintain your finances and current lifestyle, not to improve your financial standing with a significant increase in wealth.
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ag318pun
Go to your local library and read all you can about investing.
If you want to invest right now, but don’t know what to purchase,
you see a Financial Adviser who will invest your money for you
in your best interests.
Buying a stock:
Company xyz stock is priced at $20.00 a share.
You have $1000.00 that you would like to invest into XYZ.
So how many shares do you get? Answer 50 shares.
If the price of a share goes up, you make money.
If the price of a share goes down, you lose money. -
TradeBrother
What you need, if you are looking to make sound return with high probability is have a reason for investing. I only do value investing now and personally stock spinoffs of the best pick as these usually double or half in value.
Basically, the strategy here would be to purchase a Put and a Call option on a certain SpinOff stock and be ready to make serious money.
I hope that helps, if you want a better understanding check the link below. This site will show you everything you need to know. For options trading, just learn from YouTube. It’s the cheapest and most realistic way. Most other places will just try to take your money.
Just remember, these assets are far less known about, so that’s where you need to be…
Do you think it's ok to start investing in stocks and bonds? I want to plan for retirement.?
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John W
If you’re not retired and you’re working then it’s a good time to be investing in stocks and bonds. As long as you have a balanced portfolio, you can gain from the declines in the market by rebalancing so a market downturn is no reason to stop investing. Indeed when people stop during the difficult times, they make their recovery all the more difficult.
An example of rebalancing would be if you had a $1,000 portfolio and you had a balance target of 50% in stocks and 50% in cash therefore you have $500 stocks and $500 cash. Let’s say the stocks dropped in half, you now have $250 stocks and $500 cash so you rebalance by purchasing $125 in stocks giving you $375 stocks and $375 cash. Let’s say the stocks goes back to it’s original price, you then have $750 stocks and $375 cash for a portfolio value of $1,125 all while the stock price is essentially unchanged. Similarly had the stock doubled and then halved, you would’ve gone from $500/$500 to $1,000/$500 rebalanced to $750/$750 and dropped to $375/$750 for a portfolio of $1,125. Frequent rebalancing results in buying low and selling high but due to the commission costs, you often only rebalance once a year.
Now Ben Graham said to invest 45% in equity ( stock ) and 55% in bonds. Markowitz said the lowest risk is 25% equity, 75% bonds which is safer than 100% bonds and that 50/50 has the same risks as 100% bonds but much better returns. Claude Shannon at MIT did a mathematical proof that 50/50 was the optimal so why do they say to be aggressive when young and offer aggressive funds of 80% equity or more? Ben Graham said to never go below 25% equity and never above 80% equity so many people follow the advice of investing 100 – their age in percent in equity thereby moving from 80% to 25% equity in a straight line but why? Your continued contribution is why, you are contributing a set sum from your paycheck each and every month, this cash flow is like the payments from a bond so you in fact already have a bond investment as secure as your job for as long as you contribute to your investment. You can even calculate it’s value if you have a suitable discount rate; as you can’t trade in your job for cash, that discount rate should at least be equivalent to the return of your investments, currently we would expect a return of 5.4% per annum from stock market investments so using that as a discount rate, putting $466.66 per month ( maxing out your IRA or TFSA if you’re Canadian ) from the age of 32 till you’re 60 would be the same as having $466.66 * ( 1 – 1 / 1.054^28 ) / ( 1 – 1 / 1.054^( 1 / 12 ) ) = $82,238.96 so you can invest more aggressively in equity before you reach the 50% equity and 50% bonds mark if you consider your continued contributions as money invested in a bond. However your rebalancing would be limited to the contributions themselves so you can only take so much advantage of a down market which normally isn’t bad as you would achieve the ideal 50/50 market faster by investing all equity but these are times when a downturn is quite possible so it may be better to go with Ben Graham’s 80% equity till you’re balanced.
You can achieve a balanced portfolio by investing in an appropriate mutual fund, investing in a combination of a low fee index fund ( all equity ) and a low fee bond fund, or selecting your own investments. Annuities are often offered by insurance companies and have an insurance premium involved so you are paying for a benefit you hope never to collect. It is wise to have an emergency fund against the unknown so as not to make a bad financial decision but an insurance policy is an expensive and qualified way to do it.
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Calvin C
go to american college web site and look for a ChFC near you. Expect to pay for your education
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muncie birder
It would be a good plan to avoid annuities. They have a very bad reputation that is well deserved. I am retired and I did plan for my retirement by investing in stocks and bonds. If you have earned income a Roth IRA or a traditional IRA is the way to begin. You can put up to $5000 a year into one. A traditional IRA has the advantage that you do not pay taxes on the money you put in but you do have to pay taxes on everything that you take out. A Roth IRA requires that you pay taxes on what you put in but do not pay taxes on the amount taken out. Personally, I prefer the Roth IRA but from the analysis that I have done I can really not see any distinct advantage of one over the other under current tax law. Not all of your investments should be within an IRA. Some–at least 1/2–should be outside so you can have access to the money if the need arises. You do not have access to funds in an IRA without penalty until you are 59.5.
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Michael
I thinking that starting now is a great idea. Before you do anything, you should start learning as much as you can about investing. I could recommend many books but the only one that is a Must Read is the Intelligent Investor by Benjamin Graham. Warren Buffett said that this book is the best book ever written about investing and I agree with him. Also, check out the following forum: http://www.bogleheads.org/forum/index.php This is a great place to learn about investing. If you provide your details regarding time horizon, risk tolerance, assets, preferences, etc. you will get many thoughtful suggestions.
Regarding annuities: they are usually very expensive from a fee perspective. Fees should always be a consideration when making an investment.
Good luck!
http://www.financeexamtutor.com -
Audrey
One of the basic rewards of stock investing is the chance of a huge returns. The value of stocks raises as company grow large. The possibility of profit is very high because of the trend of the market to have an upward pattern if an investor chose the right companies to buy stocks from. In a shorter period time he may gain profit more if the investor traded constantly. Additional benefit of investing in stocks is accessibility. At this point, there are many stocks existed in the market. With appropriate analysis and research of the stocks and the companies that issued them via alpha.forcastix.com, anyone with enough capital can get an ownership of stocks.
Other than that, stocks traded in the market also have better liquidity than other securities offered. It can be easily changed into cash by selling the equities with various traders in the market. Lastly, investing in stocks minimizes the rate of taxes from capital profits.
Why has the stock market gone down recently?
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Kasey C
As the other guy said, it’s mainly a problem in Europe. Basically, Greece economy is about to collapse and declare bankruptcy. Several governments have money to lend it, but Iceland wants collateral, which Greece can’t afford. So apparently someone’s making a deal that other countries would pay Greece’s collateral. If the deal doesn’t go through, and Greece declare bankruptcy, or its parliament can’t agree on repayment plan for its debt by cutting even MORE spending (such as pensions, etc.) (which the creditors insist on, to make sure Greece CAN repay the debt in the future) then Greece will fall, and other countries on the brink, such as Italy, Portugal, and Spain, will likely go as well, and that’ll pretty much mess up the European Union, and affect a MAJOR piece of world economy.
That is called uncertainty, and that is risk, which affects EVERYTHING, such as travel, import export, and so on, even if it is on the other side of the ocean.
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Mr.2can
Right now the market is split 50/50 between bears and bulls. 50% of the people out there think the markets are oversold and now is the time to buy. The other 50% think the recent declines are just the first part of a bear market (ie. we still have another 20%, 40% or even 60% down to go).
The reason everyone is so split is because no one right now knows what the state of the global economy is. Corporations seem to be doing ‘ok’, but they aren’t hiring. Europe is on the brink of financial collapse (but some would say the politicians and bankers will find a way to save it). Some are saying things could get far worse than in 2008, others are saying this is NOT a 2008 scenario. Truth is, no one knows.
part of the problem is that no one knows what the banks balance sheets around the world are. The banks have kept them hidden from public view since 2008. So they might have trillions of debt (in which case they are f8cked) or they might only have a few billion in debt (in which case they are in good shape).
Point is, no one knows. If Greece collapses and causes Spain, Ireland, Italy and Portugal to collapse, then the markets could easily drop 20% in a single day at some point. Banks would end up going bankrupt all around the world.
If anyone could tell you with certainty which was the market was going, then the market wouldn’t be swinging up 5% one day and then down 5% the next.
This is a VERY risky time to be in the market. It’s safe to say at some point in the near future the market will either rally very hard (up10-15% in a couple days) or it will crash really hard (down 10-15% in a couple days).
it all depends on things that have nothing to do with the fundementals of the various stocks themselves. It’s all macro variables like sovereign debt and bank debt that is still in the system and which know one knows the full extent of.
Personally, I think your dad is taking a huge gamble right now. While the market is technically cheap, it can still get much cheaper.
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a nobody
I like to look at the stock market from a statistics point of view. I have never had any formal training in statistics, so people will be able to find errors in the way I do things, but even with the errors, this works for me.
Look at a 2 year chart of either the DJIA or the S&P 500. This is what you will find:
On 7-7-10 the market went up significantly. The entire move took about 3 weeks. (I try to focus on the major moves.)9-1-10 major move up.
12-1-10 major move up.
3-16-11 major move up.
4-20-11 major move up.
6-28-11 major move up.
8-23-11 major move up considering the poor market sentiment.Each move is amost exaxtly 3 months apart. The move in April was a bonus and the move in August was expected in September. It only missed by a couple weeks. The next imprtant thing to notice is that 3 weeks before each of these moves, almost to the day, is a major decline in the market. In my opinion, the market is too rhythmic to blame moves on events. Events that are bad for the economy don’t happen just once every 3 months.
With that being said, I am looking for another major move up to begin around December 1. This would fall in line with the "Santa Clause rally". Of course, that also means I am looking for a major move down in the first couple weeks of November. Of course, you can turn that around. Expect a major move up about 3 weeks after each significant decline.
What does the Bible say about investing?
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PastorsRUs
There are passages where examples of wise investments are prominent. The proverbs 31 woman considers a field and buys it. The other two in that parable you mentioned grew their initial "stake". The principle is there, and there’s nothing wrong with being prudent in this way. That’s called being a wise steward. What’s not prudent is the financial system we now have globally, which is not based on tangible assets like the biblical examples clearly indicate. Again, there’s nothing wrong with working hard, saving money and prudently investing your tangible assets to grow them in a Godly way.
The one who buried the talent and returned it intact received disfavor and lost the talent because he literally did nothing with it. He was a steward of those funds, and as such, he was not only to preserve the capital but to increase it as best he could. Instead, he just preserved it in a safe place. The point is that God gives us spiritual gifts and expects us to grow them and not bury them.
The parable of the pounds and the talents is in Matthew 25:14-30.
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I DJ Weddings
Jesus saves, Moses invests"
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Bob
ReligionS are against making profit/ barrowing cash.
What is a smart way to start investing in stock?
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Aubrey
I’ve answered questions like this quite a bit recently so I will tell you the same thing I told them The method you chose to buy stocks depends on how active of an investor you would like to be. ETFs are pretty much set and forget, if you find a good index ETF such as SPY (tracks the S&P 500, which tracks 500 well performing companies over many market caps). Mutual funds require a little more homework, and you have to remember that you are buying a fund manager, and not a basket of stocks as you do with an ETF. That means doing homework on the fund manager is key, as they can allocate the money however they choose.
Buying individual stock is the most time consuming but IMO the most rewarding. This is because both ETFs and Mutual Funds charge fees; this is also because buying individual companies gives the buyer the greatest feeling of satisfaction when they love what they own. Its like working on your own car or house; it takes research and effort but satisfying when you know the job is done right. Building off of the earlier strategy to diversify, many people begin by using 90% of their stock money and put it in ETFs and Mutual Funds, and use 10% as "play" money; money they use to buy individual stocks. Over time as comfort level rises, they will use a greater percentage on individual stock.
Finding quality stocks is not as hard as it was, say, 30 years ago. This is because the internet is littered with data about these companies. It actually causes a bit of information overload, but if you know what to filter then its not too bad. There are a number of sites that give you data, and less sites (like the valueline.com) that give you actionable information, and even less sites that do so for free. Myself and my partner have built a site which is in the final category, giving simple to the point stock recommendations based on sound fundamental analysis that has been used for over 100 years for free. (forcastix.com) I encourage you to look around and give me a kudos if you found it useful.
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ag318pun
Its very smart of you to becoming an investor in the stock market
a such a young age, But I have to tell you that before you do any
investing, you must educate yourself to the world of investing or
you surely will lose your money quite fast. Investing in one stock
is dangerous. Most investors have 10 or more different stocks in
their portfolio. If you are working and have an income, make sure
you use a Roth IRA along with your investments. -
Water Bender
No, you never put all your money all into one company’s shares. If that company fails, you lose your entire investment, and you’ll lose all your money. It is best to diversify, which is to spread investments over several companies in order to reduce the risk of loss, but don’t go overboard trying.
You have the option of buying many different stocks by yourself or just use a mutual fund. Mutual funds are funded by the people who buy shares in that mutual fund. Mutual funds is professionally managed by a money manager and they specialize in making their portfolio diversified. Money managers have the ability to buy hundreds, or even thousands, of stocks and/or bonds since it pools all the money deposited by all investors in the fund to buy many different types of investments. Mutual funds uses diversification to minimize loss. If a company fails, chances are some are still up (since it’s not likely they will all fail at the same time), so you won’t lose your whole entire investment. Investors, in return, earn a percentage of the money earned. It’s given per share, so the more shares you have, the more money you would make. By owning a share, you own a part of the mutual fund, which also means owning a a percentage of every security in the mutual funds. But watch out for fees called loads, and remember that you have no say on how the money manager manages the fund. If the money managers mess up, it will hurt you.Overall, you’ll probably earn more in buying stocks by yourself if you manage to Buy Low, and Sell High. Try to buy a few stocks in more than one category (like Technology, Manufacturing, Food, etc) But if you want to spend less on a more diversified portfolio, mutual funds are the way to go.
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JSmutek 5:23 pm on February 3, 2012
How long is the period that you need to hold them? Do they count Dividends? If the period is for at least a year I would choose:
Energy: ED or FE
Finance: CINF
Healthcare: Merck ( I don’t remember the ticker)
Technology: AAPL
Transportation: UPS