How to start investing in Stock Market???

July 14, 2008 6:32am CST
Here a answer for you... The frist rule to invest in market is that investment should be inversaly proportional to your age... The more younger you are that much more money you should put into market...How older the age you should decrease the percentege of your investment... The ones who should be seriously eyeing the market are the young people in their 20s... Unfortunately they are busy in finding most beautiful cell model rather than investing in newest Initial Public Offer...
3 responses
@lrglara (1347)
• Philippines
14 Jul 08
you are right on the part where the investment should be proportional to your age... but i have to disagree on the part where the younger you are, the more money you should invest and vice versa... its true that investing, especially in stock market is risky because they have no guarantees... as a matter of fact, there are instances where you will lose all your investment... investing is pretty difficult... the thing is the younger you are, the lesser the capital investment you need... you see when you're young, you have more time to wait for your investment to grow and the more tolerant you are to the risk... for instance, you invested $1,000 in a certain stock which has gained for about 3 years... (2 years is the minimum holding time) with 20% average interest per year... by that time, you'll probably have more or less $2,000 ($1,000 gain)... or the scenario is reversed... you'll lose $1,000... if you're in your 20's, you'll probably say, "that's ok, i can gain that back again. i earn more than that in my salary." obviously, if you're on your 50's, you'll definitely grined your teeth and curse the stock market because you lost $1,000. You tolerated the risk... you can earn the loss back again if you're younger... another thing, when you invest in stock, especially company stocks, you are part owner of the company... the market may not be good at that time but if the company is still profitable even in turbulent times, you'll still gain dividend payable (this is payable every year in some companies)... you'll still earn something... if you want a less risky type of investment, why not invest in mutual fund... mutual fund companies pool funds and invest it in numerous stock and bonds... that way, the risk is distributed and loss is decreased. Hope that helps.
@bibek4 (86)
• India
14 Jul 08
i had have deal with the share market above 3 to 4 years i have made many thing from it and lost many things from it i suggest all not to invest your valuable money in this business as it has 40 percent of chance to get a loss try to invest your money where there is only profit no loss like internet marketing i think it might help you taking the decision about the share market or stock market
@siddiqali (632)
• India
14 Jul 08
I didn't thought of investing in the stock market becuase its too much risky.I would rather do a real estate business rather than investing in the stock market.