Investing in the stock market??

Question

Ok i dont get it how do people make money on this, i have been reading at vangurad-there investor education. One of the examples where when people make money for when they are 65.....30 year investment???

so how do all these young people driving there mercedes talking about they made it on the stock market how do they get so much money from it? buying one stock at a time? mutual funds??? how?

please help i really want to understand how this works....any help and breaking it down for me would be useful...

Answer 1

The stock market is a place where you can invest so many different ways. If you choose to invest in small unproven companies, it's possible to reap huge rewards, or suffer huge losses. I liken that to going to Vegas and putting all your money down on a hand of blackjack, and that's not investing.
The best way to make money in the stock market is to have a long-term plan and diversify across the market. This can be done with mutual funds. Over the last 80 years, the market has averaged better than 10% annually. You will have years where you're up 30%, and also years where you're down 20%. But have faith in the market long term, and you will come out all right
If you don't have a minimum of 8-10 years to invest, then you should have other investments as well, like CDs or bonds.

Answer 2

Vangard sells investments, and if I remember right, they sell mutual funds.
Mutual fund companies want you to invest for the long term, Put some in now, more every month, or year, and over a long period of time it all adds up and you have a nest egg for your retirement.

And this is good for people who don't understand investments and want someone else to look after there money, and don't realize that there are times before retirement, they will lose money, and times they will make money. But either way Vanguard gets at least trailing fees if nothing else, I don't know what there fee structure is.

But the guys running around in Mercedes, don't buy mutual funds, they are either stock brokers with inside knowledge, or they are rich guys working in companies that give them stock options, Or they just have lots of money anyways, have big investment accounts and because of this, they get first call to the trough when something exciting comes on the market like a "Good" IPO

Little investors get access to "Junk" IPOs only.

When you invest a lot of money, you can make a lot of money(if you know what you are doing) or lose a lot if you don't keep "On Top" of the market.

Quite often I make $20,000 a day through one investment, on good weeks I make $50,000, Some days I am Down by a lot, My worst 2 day down was $33,000.

But I just play at it and am just happy to average $2,0000-$4,000 a week over any given year.

But you could not sleep at night with those numbers, up and down.

So I explained your question and I will give you advice.

Stick to slow, steady , long term investing, Pay attention to asset allocation, Stay with Mutual funds until you have studied the markets for 10 years, Always buy quality, and remember Increased risk can give increased reward, but also can strip you of your money so fast it will make your head spin.
Good luck

Answer 3

Before you actually start investing in stocks, it is extremely essential to understand that, there is no fully effective strategy to invest in stock market that can always guarantee success; otherwise all investors would be a millionaire. You have to accept the fact that losses are also a part of stock market just how profit is. However, it is possible that by practising several factors from different strategies, utilizing your instincts along with common sense you will be able to achieve success and keep your losses limited.

The interesting thing about stock market is that every trader has his or her own strategy, which according to him is effective and can guarantee great returns. Nevertheless, basic philosophy of investors is to make sure that they don’t lose money, have a margin of safety and invest for long term. Investors also try to develop an understanding what to sell and when to sell. Also, make it a point that you invest when there good stocks buy, don’t invest just because of sake of it. Numbers of investors also make use of effective stock tips and stock cash tips to keep losses low and earn great profits from their investments.

Answer 4

First of all you need to learn to play the bull market then you can learn to play with the bear market. Never ever be a hog and put all your money in one stock you will loose too much. I can help you with this a bit I have read a few books and have learned alot and I started 2 months and two weeks ago with $200 now I am at 600 now I was up to 700 but the feb 27 correction took me down to 500.You must get Stock Investing for Dummies, and 24 Essential Lessons for Investment Success these books are worth every penny.Also you are going to want to set up an online account to better understand what they are talking about in the books you will have visual picture. do not set up margin account I have the best online broker there is and they are very cheap. If you email me I will send you right to them and let you know how to set it up and you don't have to deposit money till you are ready. my email is [e-mail] I do get 50 dollars for referals but they are the best and I am more than happy with there service. I can help you out finding the things you will need to know on the site.