Multiple Stocks For Starting Traders
If you're barely making good savings as it is, then how would investments be possible? For example, let's say you're making about $25,000 in a year. Subtract all the necessary expenditures like, feeding yourself, paying for mortgages, gas money for your car, and other expenses, and you know you have to start investing for your future. It's a wise decision to start doing so; as even in small amounts, savings can add up fast if done on a regular basis.
Don't worry about it, Uncle Sam is here and willing to help a citizen of his country. For example, take the statistics over the past ten years. Annually, the stock market returned about eight percent on average, so even if you start with absolutely nothing and invest about ten dollars every week, and match an investment with about eight percent return, you'll have about $8000 in ten years. If you got a better investment, one that goes for about twelve percent in annual returns, you'll even get to ten thousand.
There is one big thing to remember, though; investing with small amounts of money does not mean you put it all in one horse. Any stock investor, regardless of talent, will eventually pick a bad investment that will drop by about thirty percent right before your morning coffee the next day. If that's only a small fraction of your stocks, then it's not so bad. But it would be a financial disaster if that's about a fifth of your money.
As a small time investor, it would make much more sense to go with mutual fund and exchange-traded funds. And why is that? For starters, mutual funds have something called automatic diversification. Because most investors hold dozens of stock, one that fails will have a minimal impact on their portfolio.
And one last thing to remember: I would advise to purchase these funds directly from a fund company. If you're a small-time investor, buying them through stockbrokers won't work, as a lot of them will ask for a big-sized check to open accounts. However, it's not a big problem, and it can be overcome with ease. - 23222
Don't worry about it, Uncle Sam is here and willing to help a citizen of his country. For example, take the statistics over the past ten years. Annually, the stock market returned about eight percent on average, so even if you start with absolutely nothing and invest about ten dollars every week, and match an investment with about eight percent return, you'll have about $8000 in ten years. If you got a better investment, one that goes for about twelve percent in annual returns, you'll even get to ten thousand.
There is one big thing to remember, though; investing with small amounts of money does not mean you put it all in one horse. Any stock investor, regardless of talent, will eventually pick a bad investment that will drop by about thirty percent right before your morning coffee the next day. If that's only a small fraction of your stocks, then it's not so bad. But it would be a financial disaster if that's about a fifth of your money.
As a small time investor, it would make much more sense to go with mutual fund and exchange-traded funds. And why is that? For starters, mutual funds have something called automatic diversification. Because most investors hold dozens of stock, one that fails will have a minimal impact on their portfolio.
And one last thing to remember: I would advise to purchase these funds directly from a fund company. If you're a small-time investor, buying them through stockbrokers won't work, as a lot of them will ask for a big-sized check to open accounts. However, it's not a big problem, and it can be overcome with ease. - 23222
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posted by X - Men @ 7:36 AM
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