2007-08-31 09:40:34 · 10 answers · asked by Alexander 1 in Business & Finance ➔ Investing
Over the test of time, the market will return a higher yield than bonds, CD's or any other instrument of investment. However your investment strategy will determine the risk. Buying one stock is more risky than buying a mutual fund that holds 50 stocks. Buying a stable company that pays a 2% dividend is probably a lot safer than buying a drug start up company with no sales and showing a huge loss, however the reward is usually in direct opposite relationship of the risk. Invest wisely and do so for the long term.
2007-08-31 09:47:16 · answer #1 · answered by Anonymous · 2⤊ 0⤋
You mean active trading, like buying and selling stocks fairly frequently?
The answer is a resounding YES. It is very easy to lose money in the market.
Now if your intention is to buy a nice wide variety of good stocks and hold onto them for a few years, then it's fairly low risk.
2007-08-31 12:28:35 · answer #2 · answered by Uncle Pennybags 7 · 0⤊ 0⤋
Hi there,
Stock trading can be risky depending on what type of stocks you decide to buy and how long you plan on keeping them. Generally, if you buy what are called blue chip stocks (i.e. large banks, companies that have a large market share in their industry, those with a good track record of paying dividends, etc.), you should be OK and minimize your risks in down markets.
If you have more specific questions, feel free to write to financialfitnessadvice@gmail.com.
2007-08-31 09:56:41 · answer #3 · answered by Anonymous · 1⤊ 0⤋
I agree with the other posters. For a new investor, I'd recommend only investing the money you can afford to lose.
2007-08-31 11:56:09 · answer #4 · answered by Anonymous · 0⤊ 0⤋
If you rush into it without knowing what you're doing, it can be deadly.
Here's a good web site for beginning investors. Don; let the name fool you. It may sound like a joke, but it isn't. Sign up for their newsletter.
2007-08-31 10:03:49 · answer #5 · answered by Barry auh2o 7 · 1⤊ 0⤋
yes it has an element of risk
even good companies that you invest in can report a loss and their stock can tumble
2007-08-31 09:44:20 · answer #6 · answered by Anonymous · 1⤊ 0⤋
Absolutely. Investing in stocks is considered high risk.
2007-08-31 10:19:26 · answer #7 · answered by zanthus 5 · 1⤊ 1⤋
Yes, day trading is gambling, and you're betting against professionals who are much better informed than you - be prepared to lose everything you put into it.
2007-08-31 09:49:20 · answer #8 · answered by CinderBlock 5 · 2⤊ 0⤋
No.
You don't really think Coca-Cola will lose money this year, do you?
Here is a graph for the last 40 years.
2007-08-31 20:30:55 · answer #9 · answered by Anonymous · 0⤊ 1⤋
there ain't no free lunch. you have to take a risk. go with quality mutual funds to be safest.
2007-08-31 09:49:02 · answer #10 · answered by Anonymous · 2⤊ 0⤋