I wnat to know if the risks out weigh the potential profits in the stock market?
Question:
please help me
Answer:
start investing systematically in mutual funds, over the next 10 to 20 years you'll make a helluva a lot more there than you will in a savings account, it just won't happen overnight
I started out by leaving my money in the bank. Interest rates were low so I decided that was a waste of time. I went from bank to bank asking them to teach me about mutual funds. I learned a lot and spend $1000 each on a few different mutual funds. I still have those same funds today, plus more. That was a good way for me to get introduced to how mutual funds and investments in general work. I agree with the previous poster it's better to doing it systematically though. Just keep investing over time and it will grow.
Sincerely speaking I have a bias against Mutual Funds for the simple reason that MF's never tell you when to get out. In the stormy world of stock markets each one has to fend for himself. Ive been a practicing technical analyst since the last 6 years and have been doing reasonably well in the stock markets. Recently Ive launched a website www.capitalprudence.com (it isnt complete as yet but you can still visit it if you so desire). I would urge you to invest some time and money in learning technical analysis.
Regards
If you invest $100 in a bank you will get $5.00 after a year.
If you invest $100 in a Stock you will get $10.00 after a year but you could also lose $10.00 after a year.
Can you handle that?
Most people in the World will always choose the first option and most people in the World are poor.
Do you want to be poor or do you want to be rich?
Top 3 Answerer in Business & Finance. (Vote for me)
No, the risks do not outweigh the profits, otherwise nobody would be investing.
However, it is still risky. And the best way to eliminate risk is to be knowledgeable about what you do.
So first of all invest in your financial/ investment knowledge, and then work from there. The first thing they will tell you in all the books though, is get a plan, get a plan, get a plan.
Try Robert Kiyosaki's Rich Dad Poor Dad series, they have helped me a lot. Today I have joined a coaching organisation which teaches people to become financilly independent.
More Questions & Answers...