http://www.profitableinvestingtips.com/stock-investing/stock-market-investing
Stock Market Investing
Stock market investing can provide investors with better returns over the years than a bank account or US Treasury Bonds. Stock market investing is also riskier than simply putting your money in an FDIC insured bank account or Treasuries that are backed by the full faith and credit of the US government. How do you profit from stock market investing and minimize the risk? Here is an overview of stock market investing. As an example let us assume than you just got a big bonus at work or your dear Aunt Ethel left your $10,000 in her will. Let us look at how to invest $10,000 as an opener to how to stock market investing.
Stock Market Investing 101: Before You Invest
First of all you will want to invest in the stock market and not gamble your money there. Start by realizing that a good stock investment may pay much better than a bank deposit over the years but will typically not keep up with the rate of interest that you are paying on credit cards. So, before investing in stocks pay off your credit card debt, look into buying a house or condo as mortgage interest is still tax deductible, and put aside enough in the bank for six months of expenses. That having been said there is nothing wrong with picking a couple of low priced stocks and investing a couple of hundred dollars in order to become accustomed to picking stocks, learning about what constitutes a margin of safety, how to do fundamental analysis and what intrinsic stock value is.
Stock Market Investing 102: Time Horizon, Risk Tolerance
Are you investing for retirement, to put your new child through college when he comes of age or for a vacation home as soon as you can afford it? The longer you have the more risk you can afford to take on. High risk growth stocks can make you a lot of money and they can crash. These are stocks to consider as a fraction of your portfolio when you are young. On the other hand dividend stocks from well established companies are a good idea as you approach retirement or whatever your goal may be. Also, you can always live without your home on the lake but you really do not want to miss out on your retirement nest egg. Think critically about what you want in life and engage in stock market investing accordingly.
Stock Market Investing 103: Diversification and Portfolios
It is a good idea to invest in more than one stock. If you have a couple of biotech startups that you like you may want to balance the risk of these investments with a stock that has a history of slow but steady growth as well as regular dividend payments. Whatever you buy for the short or long term you need to pay attention. Do not buy so many stocks that you cannot keep track.
2. Stock market investing can provide
investors with better returns over the
years than a bank account or US
Treasury Bonds. Stock market
investing is also riskier than simply
putting your money in an FDIC
insured bank account or Treasuries
that are backed by the full faith and
credit of the US government.
By: http://www.profitableinvestingtips.com/stock-investing/stock-market-
investing
3. How do you profit from stock
market investing and minimize the
risk? Here is an overview of stock
market investing.
By: http://www.profitableinvestingtips.com/stock-investing/stock-market-
investing
4. As an example let us assume than
you just got a big bonus at work or
your dear Aunt Ethel left your
$10,000 in her will. Let us look at
how to invest $10,000 as an opener
to how to stock market investing.
By: http://www.profitableinvestingtips.com/stock-investing/stock-market-
investing
5. Stock Market Investing 101:
Before You Invest
By: http://www.profitableinvestingtips.com/stock-investing/stock-market-
investing
6. First of all you will want to invest
in the stock market and not
gamble your money there. Start by
realizing that a good stock
investment may pay much better
than a bank deposit over the years
but will typically not keep up with
the rate of interest that you are
paying on credit cards.
By: http://www.profitableinvestingtips.com/stock-investing/stock-market-
investing
7. So, before investing in stocks pay
off your credit card debt, look into
buying a house or condo as
mortgage interest is still tax
deductible, and put aside enough
in the bank for six months of
expenses.
By: http://www.profitableinvestingtips.com/stock-investing/stock-market-
investing
8. That having been said there is nothing
wrong with picking a couple of low
priced stocks and investing a couple of
hundred dollars in order to become
accustomed to picking stocks,
learning about what constitutes a
margin of safety, how to do
fundamental analysis and what
intrinsic stock value is.
By: http://www.profitableinvestingtips.com/stock-investing/stock-market-
investing
10. Are you investing for retirement,
to put your new child through
college when he comes of age or
for a vacation home as soon as you
can afford it? The longer you have
the more risk you can afford to
take on.
By: http://www.profitableinvestingtips.com/stock-investing/stock-market-
investing
11. High risk growth stocks can make
you a lot of money and they can
crash. These are stocks to consider
as a fraction of your portfolio when
you are young.
By: http://www.profitableinvestingtips.com/stock-investing/stock-market-
investing
12. On the other hand dividend stocks
from well established companies
are a good idea as you approach
retirement or whatever your goal
may be.
By: http://www.profitableinvestingtips.com/stock-investing/stock-market-
investing
13. Also, you can always live without
your home on the lake but you
really do not want to miss out on
your retirement nest egg. Think
critically about what you want in
life and engage in stock market
investing accordingly.
By: http://www.profitableinvestingtips.com/stock-investing/stock-market-
investing
15. It is a good idea to invest in more
than one stock. If you have a
couple of biotech startups that you
like you may want to balance the
risk of these investments with a
stock that has a history of slow but
steady growth as well as regular
dividend payments.
By: http://www.profitableinvestingtips.com/stock-investing/stock-market-
investing
16. Whatever you buy for the short or
long term you need to pay
attention. Do not buy so many
stocks that you cannot keep track.
By: http://www.profitableinvestingtips.com/stock-investing/stock-market-
investing
18. You can buy stocks for your
retirement plan such as a 401K.
You can buy directly through a
broker. You can buy common
stocks or preferred stocks.
By: http://www.profitableinvestingtips.com/stock-investing/stock-market-
investing
19. Preferred are usually more
expensive and often provide a
dividend that is paid before
owners of common stock receive
any. You can buy stocks in
individual companies or shares of
exchange traded funds that
represent collections of stocks,
gold bullion, etc.
By: http://www.profitableinvestingtips.com/stock-investing/stock-market-
investing
20. And, stock market investing is a
business. Learn the ropes, examine
your results, and get sound advice
if you need it. Avoid tips unless
you thoroughly check them out.
And do not be afraid to simply
invest in things that you know
about and are comfortable with.
By: http://www.profitableinvestingtips.com/stock-investing/stock-market-
investing
