Yesterday I spent a fun day with some friends watching a minor league baseball game. Between innings we were able to get caught up on things. A big topic of conversation (and questions) were about investing in the stock market. For that reason, I decided to repost a blog I initially published in April of this year. I know it's been awhile since I had original content and that's coming soon but I thought this was important enough to report again here today.
Investing in the stock market IS risky. Not ‘it can be’ or ‘it might be’, it IS risky. But without risk there’s little reward. The important thing is to practice what you learned in school. Do your homework. Find a company that you have an interest in and do some research. If you like drinking Coke’s, look up the company’s financial information. It’s as simple as going to Yahoo’s financial link and typing in the company name to find the stock ticker symbol (KO =Coca Cola). From that point you can look at the stock charts, dividends, insider or institutional holders, historical prices, analyst opinions and a variety of other information.
Another source I’ve found extremely helpful for explaining terms is investorpedia.com (http://www.investopedia.com/ ). The tutorials are excellent for beginners and those who want to learn more about research and terminology. ( http://www.investopedia.com/university/stocks/ ).
While it can seem a bit overwhelming for new investors to the market, research is a very important process. In today’s current market a lot of companies are undervalued due to overall economic concerns. This is an opportune time to consider investing in stocks. Seldom in the history of the market have opportunities like these come about but when they have the subsequent upturn has been substantial within the first 18 months. Most investors become overly cautious and wait until the market has passed the greatest period for growth. I’m not suggesting anyone go ALL IN or any such thing. Not now, not ever should you put all your eggs in one basket. But at least one egg in the stock market basket to give oneself an opportunity to get on course for the run up is essential for long term financial stability.
Don’t wait until tomorrow to invest for tomorrow. Carpe diem. Do your homework. Make
an investment plan and act on it. Don’t be the person who says, “I wish I had” but be the person who says, “I’m glad I did”.
Good luck to all!
Steve
Thursday, July 30, 2009
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