Multiple Stocks For Starting Traders
How would investments be possible if you're barely making good savings? Say you're making around $25,000 annually. Between feeding yourself, paying for your mortgages, your gas money and other expenses, you know that you have to start investing for your future. It's a good idea to start doing so; because even in small amounts, savings can add up surprisingly fast if done regularly.
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.
But, remember his, though; investing with small amounts of money doesn't mean that you put it all in one basket. All stock investors, regardless of their experience and talent, will inevitable pick a bad investment that will drop thirty percent before the next morning's coffee cup is empty. If that's only a small percentage of your stocks, then it's not much of a big deal. But if it's a fifth of your money, then you have a financial disaster.
It would make much more sense of a small-time investor to go for mutual funds and exchange traded funds. And this is because, for starters, mutual funds provide automatic diversification. Most investors hold dozens of stock, one failing will have a minimal impact on the rest of their portfolio.
Oh, and one last thing; these funds must be purchased directly from a fund company. Purchasing them through stockbrokers won't work if you're still a small-time investor, as most will ask for a hefty check to open accounts. It's not a big problem, however, and it can be overcome easily. - 23223
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.
But, remember his, though; investing with small amounts of money doesn't mean that you put it all in one basket. All stock investors, regardless of their experience and talent, will inevitable pick a bad investment that will drop thirty percent before the next morning's coffee cup is empty. If that's only a small percentage of your stocks, then it's not much of a big deal. But if it's a fifth of your money, then you have a financial disaster.
It would make much more sense of a small-time investor to go for mutual funds and exchange traded funds. And this is because, for starters, mutual funds provide automatic diversification. Most investors hold dozens of stock, one failing will have a minimal impact on the rest of their portfolio.
Oh, and one last thing; these funds must be purchased directly from a fund company. Purchasing them through stockbrokers won't work if you're still a small-time investor, as most will ask for a hefty check to open accounts. It's not a big problem, however, and it can be overcome easily. - 23223
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posted by X - Men @ 3:07 AM
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