What is the best thing to invest your money in? Stocks or what?

Knowing how best to invest your money starts from knowing what your investment objectives are in the first place. There is a financial instrument for every kind of investment objective.

If your objective is to make a steady growth in your money for the long term and to prepare for retirement, you probably want to invest in real estates as it is very stable and usually grows over the years.

If your objective is to make a short term aggressive profit quickly for some use in the near future, then you probably want to get aggressive with stocks and options, BUT, the risk is that you may lose all your money just as quickly. The stock markets is not an expressway to riches.

Investing or trading the stock markets starts from adequate investment and trading knowledge. There are quite a number of things you need to learn before you can even start thinking of the stock markets ...

1. You need to understand how the stock market works and what it is exactly about.

2. You need to know what are the different styles of trading in stocks and shares.

3. You need to read about why so many people lose their shirts in the stock markets so that you can avoid their mistakes and also decide if this is a risk you want to take.

For all these issues and more, you can read about them from some of the articles that I wrote at http://www.mastersoequity.com/articles.h...

After you are adequately armed with the basic concepts and ideas, you need to know how to find profitable stocks to trade or invest in. You can do that the easy way by subscribing to stock pick services (example http://www.stockpickmaster.com ) or you can learn to use charting tools and softwares to find stocks with parameters that you can pre-define. (example http://www.worden.com )

All in all, investment and trading is a lifelong education and non stop learning. No one is ever done learning and catching up with changes in the markets.

If you care to read about how I went from completely broke to retired millionaire trading stocks and options by 28 years old, you can go to http://www.mastersoequity.com/

Remember, the slogan "Just Do It", Just won't do for the stock markets. If profiting in the stock markets is as simple as buying a single stock , then why are so many people still poor?

After you have all the above mentioned knowledge, you need to ask the following golden questions before you can decide whether a stock is worth buying or not :

1. Why are you of the opinion that this stock will rise?

2. Is your opinion valid in the first place?

3. When are you expecting it to rise? Can you hold on for that period of time or longer?

4. What is your expected entry price? After what price would your expected profit margin be too thin to enter upon?

5. Where is your expected stop loss point? What is your stop loss point based on? Where will you tell yourself that it is time to take a loss and get out?

6. Where is your expected profit taking point? What is your profit taking point based on?

7. Does the way you are buying the stock allow you to hold on until your expected profit taking point?

8. How much of your money should you dedicate to this one trade?

9. What is the level of primary, secondary and idiosyncratic risk you are undertaking when deciding how much of your fund to use?

10. What is your cashflow need? Does your cashflow needs allow you to hold the full lifetime of the stock?

After you are able to answer all these questions confidently, THEN you are ready to... PAPER TRADE your stock strategy. Yes, even at this point, you are NOT READY to trade for real. You should trade on PAPER for at least 6 months and become consistently successful BEFORE you take your stock strategy into real life.

Then.. you are ready to start... but there is still no guarantee of success as paper trading is very different from real trading. You will need another maybe 1 year or 2 trading very little money and be consistently successful BEFORE you are ready to increase your stakes.


So, as you can see, success in the stock markets is not easy at all the the less knowledge you have, the more risk you undertake. I lost hundreds of thousands in the stock markets before I become successful.

Take heed and good luck.




http://www.mastersoequity.com

http://www.optiontradingpedia.com




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It all depend on your financial situation. If you don't need the money and can afford the risk, then, stock could be the best investment. However, you must have the knowledge about the stock market.

If you cannot afford the risk, then, you should consider Government Bonds. It is the safest but offer a low return on your investment. Alternatively, you may consider GIC or term deposits.

the best thing to invest your money in is mutual funds. when you buy a mutual fund your money buys shares of hundreds of companies all at one time, and you have professional money managers picking the investments for you. the cost is very minimal. when you buy a stock, all of your money is in just that stock, and stocks go up and down in price very quickly, and if you don't know what you are doing, you can lose a lot of money quickly.........heck even if you do know what you are doing you can lose a lot of money quickly..........go and see an investment person at your local bank and they can help you get started. you can start with as little as investing $50.00 a month into you very own mutual fund. start doing this at the earliest age possible and you have a great chance to make yourself tons of money someday, they can show you some examples....good luck