What would you say to a new investor to calm their fears of investing in stocks?
I would say, don't start off shooting for the stars; start small. It's much easier to lose a $100, as opposed to $5,000. As for the fear factor, it would be a good idea to stay away from stock options and anything else high risk. This way if the investor gets scared they can take out their money with only a small loss.
In a short sentence, don't risk more than you can afford to lose. If you buy £1000 worth of shares, even if you (obviously) think it's going to go up, consider it £1000 lost.
I would say, stay away from the stock market entirely, unless you have money you can afford to lose. That is especially true in the current economy. While some may advise investing small sums, that is not always possible, for there may be large minimum investments required, depending on the stock.
As for so-called "penny stocks" ... you reap what you sow.
If you insist on playing the market, do nothing at all until you make a thorough study of the entire system, and understand it fully. Know that if you do not, you open yourself up to the potential to lose a lot of money.
This is the advice I follow--I know that I know little enough about it to stay far, far away.
by Deseree Michele 4 years ago
What are some good stocks to invest in as a new investor?I have been doing my research, talking to some financial advisors, but it's like they are speaking Greek. I am looking to make my money work for me. So the question is, which stocks have minimum risk for a long term investor?
by JP Carlos 6 years ago
What are some stock market basics that a new investor should know?Many say they earn a lot from the stock market. What should one know to earn from the stock market?
by Arian Won 9 years ago
I know the stock market is bad, but I'd like to start investing as I know there are a lot of great bargains out there. So if anyone can recommend any published books that they have read themselves, I would appreciate it.
by MRdivman 9 years ago
Why would an investor choose dividend stocks over growth stocks?
by TimTurner 7 years ago
The stock market has risen about 15% in the last 3 months and about 80% in the last 8 months. Seriously?We are still losing close to 200,000 jobs a month and small businesses are hurting. The economic data is very mixed. The ONLY reason why the last quarter looked so good was...
by Zara Rasul 6 years ago
Do you invest in the stock market?Buying and selling stocks... is it a legitimate way of making money? Or is it akin to gambling?
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