Now, it’s absolutely impossible for me to give you all the information you would need know about stock investing in one blog post, but if you can learn from my failures then you can learn a lot. Whether you’re a working single mother, stay at home mom, or simply wanting to get ahead your finances, the stock market is a smart way to go and a little education will get you ahead of the “average investor” or what is also known as a speculator.
Before you begin any new venture, you need to write down goals for what you want. How much do you want to make? Are you investing short-term or long-term? Are you investing to save up for retirement or investing for a big purchase within a couple years? Find out exactly what you want, for that will determine everything.
Did you know that between the average doctor and a cocktail waitress, the waitress has more potential to become the stronger stock investor? Why? It’s because of the time she has to educate her self. If there is anything I could get across to you, it is to read, read, and READ! I have learned the most from reading books. Though there are other methods such as seminars, and corporate seminars, overall you have to get out there and educate yourself. Start on the “How To…” books and work your way to stock analysis. When I started, it was so confusing and left me frustrated at times, but I now know that everyone has their own style to investing and you cannot invest in a particular set of stocks because someone else has a “successful portfolio”.
Make the decision for yourself, and keep in mind that your favorite retail store brands may not be the best in the stock world- believe me, they owe ME money now.
Defensive VS. Aggressive
As you begin to educate yourself, you will learn about the styles of investing. The two I will share today really speak for themselves- The Defensive Investor and The Aggressive Investor. The Defensive Investor will take on more precautions, leaning towards mutual funds, index funds, bonds and blue-chip stocks. The Aggressive investor may do the same, yet work with more tech stocks, starter companies, and short-term investing that may be similar to day trading. As said before, everyone has their own style, but I found that defensive investing saves more in the long run (taxes, profit, etc.)
Beware of Mr.Market
Who is Mr. Market? Mr.Market is the news, stock advisors and stock bloggers that have all of the information you “need to know”. Though there are many great stock analysts out there and it is important to keep up with the news, he can be very manipulative and is filled with lots of opinions. He will tell you about what you should be selling, buying, and what your portfolio needs to look like. Mr. Market and I are good friends, but I don’t agree with everything he says or does. However, there a few websites you should check out that are great for novice and experienced investors: Investopedia, MarketWatch, The Motley Fool, and Bloomberg.
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