2006-08-13 18:56:44 · 11 answers · asked by condaleeta rice 2 in Business & Finance ➔ Personal Finance
Buy and hold. Transaction costs, and the daily fluctuations of the market, and the behavior of stock salespersons all can reduce your returns.
The answer will differ for every individual and every situation.
It also depends on the amount investment capital you have to place in risky investments.
Diversification is the most important factor in any investment strategy.
*******************************************************
Not knowing your situation, I would research stock salespersons and look into investing in spyders(SPY). They are based on the standard and poors index. Then buy and hold. Over the very long term, the S & P average has yielded about 11 percent, EXCEPT, this figure doesn't allow for stocks that enter and depart the index of 500 stocks it is based on. There are many similar investment vehicles, but SPY is the gold standard, and the first ETF based on the S & P.
*********************************************
Over the long term, S & P has outperformed every stock picker and mutual fund, although two families of mutuals have done fairly well. Mutual funds also tend to have expensive management costs.
A stock salesperson is almost never a stock expert. They are in sales, and sometimes have incentives for promoting inferior investments.
When I worked for National Association of Securities Dealers, I was initially horrified at the level of criminal activity of some stockbrokers.
2006-08-13 18:59:33 · answer #1 · answered by Anonymous · 4⤊ 0⤋
So..
Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share. They are notoriously risky but if you follow a special method I've learned you can earn good money at almost no risk. This is the site I use: http://pennystocks.toptips.org
I definitely recommend subscribing to this site in particular. Very good research, quality stocks. I was a bit weary of penny stocks from all the bad hype they receive but this guy is pretty legit. He's put my mind at ease with a lot of the fears I've had. I especially like that he doesn't send out announcements left and right. I've signed up for other websites that fill my in-box with one company after the other. I don't know where to even start with so many choices in front of me! Nathan sends me one idea a week and that's all I need. Working so many hours during the week leaves me with very little time when I get home to start doing tons of penny stock research. I'm always eager to see what Nathan's next suggestion is each Friday and I love having time on the weekend to do my research.
As said above if you want to make money with penny stocks you have to follow some proven methods. This one in my opinion is the best: http://pennystocks.toptips.org
Good Bye
2014-09-22 13:46:52 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you are a beginning investor, I suggest investing in mutual funds. These help you with the concept of diversification. Diversifying makes your portfolio stronger. For example, if you were to buy all Coca-Cola stock, and then a competitor figures out Coke's secret formulas, stock plummets and you lose all your money. Diversifying creates less risk for you, since some of your stock may go up, even while others are going down, minimizing your risk. Mutual funds do the work of balancing and diversifying your portfolio for you. You don't have to worry about investing too much in a single company or sector, placing your funds at greater risk. Many mutual funds follow a broad cross section of the whole market, and some follow only a sector, such as leisure products. Take the time to learn about your options instead of diving in and hoping you can swim.
2006-08-14 02:05:04 · answer #3 · answered by Freddie 3 · 1⤊ 0⤋
Diversify. If you buy lots of stocks from all different industries you are much less likely to suffer a loss if one aspect of the economy goes down.
Example: If you bought all Ford stock, current gas prices are killing your stocks' value since demand for cars is going down. But if you bought some Ford stock and some Exxon Mobile stock, they'll balance out.
2006-08-14 02:03:51 · answer #4 · answered by im.in.college.so.i.know.stuff 4 · 1⤊ 0⤋
It took me a few years to come up with the perfect strategy for me.
STAY OUT
2006-08-17 09:17:59 · answer #5 · answered by Anonymous · 1⤊ 0⤋
I would go with mutual funds. They are more diversed and reduce some of the risk. Any type of investment has some type of risk.
http://txhomebusiness.blogspot.com/
2006-08-17 10:07:32 · answer #6 · answered by Jason M 2 · 1⤊ 0⤋
Go with companies that are diversified and not fad companies .Any companies that are commodity based is a safe conservative approach also . Good luck .
2006-08-14 21:21:08 · answer #7 · answered by Anonymous · 1⤊ 0⤋
Do not buy stocks in companies you don't know anything about. (Warren Buffett)
2006-08-14 12:20:12 · answer #8 · answered by Anonymous · 1⤊ 0⤋
buy a set amount with dollar cost averaging every month
2006-08-14 01:58:53 · answer #9 · answered by Anonymous · 0⤊ 0⤋
buy low sell high
2006-08-14 01:59:25 · answer #10 · answered by border 2 · 0⤊ 0⤋