How do stocks/bonds and all that stuff work?
babygirlxx68 asked:
I have “some” money saved (not much) but I heard about stocks & investing money rather than just have sitting in my acct earning a couple of pennies interest a year… I have no idea whatsover about these things…Please explain like if I’m a 5 yr old.
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I have “some” money saved (not much) but I heard about stocks & investing money rather than just have sitting in my acct earning a couple of pennies interest a year… I have no idea whatsover about these things…Please explain like if I’m a 5 yr old.
February 15th, 2009 at 6:55 am
It can’t be explained on a website blog. Go get the book “Investing For Dummies.” Its a great basic introduction to investing.
February 16th, 2009 at 11:26 am
In addition to engineer’s answer, I suggest going to investopedia.com
This is a free site AND its one of Y! A’s “knowledgable contributors”.
There are virtually thousands of books and countless articles written about investing in the market.
Here are some of the things I learned:
1] Contrary to what anyone might tell you or what you hear, you don’t have to learn everything about the market. All you have to learn, become knowlegeable about and be comfortable with are 3 to 6 different strategies.
Trading is a very emotional venture. As far as I’m concerned and what I was recently taught:
2] Paper trading or virtual trading isn’t all its represented to be. When first trading, paper trading or virtual trading is a wonderful tool.
To get the full emotion and your attention, just buy a few shares of a stock. Don’t put your whole account or entire portfolio on the line.
3] Penny stocks are very, very, very risky and volatile.
Most folks think its a great way to earn fast, easy money. Believe me: Its not.
The ONLY thing penny stocks are good for is to get folks to part with their hard-earned money.
A few sayings about Wall Street:
There aren’t any gifts on Wall Street!
Trees don’t grow to Heaven. Neither do stocks!
Bulls [Buyers] earn money!
Bears [Sellers] earn money!
Pigs get fat!
Hogs [Greedy traders] get slaughtered!
Plan the trade AND trade the plan!
When a trader breaks his/her trading rules, he/she runs the risk of breaking his her trading account!
Thanks for asking your Q! I enjoyed taking the time to answer it!
VTY,
Ron Berue
Yes, that is my real loast name!
February 16th, 2009 at 10:00 pm
Open a brokerage account at Zecco and I will help you for FREE. (I am a Portfolio Manager)