Stocks. questions?

define.
how it works
3 PROS & 3 CONS
risks involved
better for a long term or a short term investment?

That is such a broad question it is hard to answer鈥?.

The markets basically move from supply and demand. Now with that said, there are 100鈥檚 of things to look into before buying a stock (alpha, beta, the company, index, management, how many short/long, PE, economy鈥?.etc).

Risk is also called beta (risk to an index). I like the beta to be against the Russell 2000 / 3000 and also the S&P 500. A beta of 1 would be the same risk as the market.


There are stocks that you can buy for short term, and stocks for the long term. I would read a few book, and if you have any questions something e-mail me.

Rich Dad Poor Dad by Robert Kiyosaki. READ IT!!!

If you are a novice investor stocks are risky. You are better off with ETFs (Exchange traded Funds) like RYVYX or JAOSX. Think long term - I assume you are young and have time on your side.

1) You buy a piece of Wal-Mart and they pay you a piece of the profits.
2) a) You don't have to actually work. b) You don't get shot by a recently fired employee c) You automatically get at least a $100,000.00 USD credit line. (If you have at least $25,000.00 USD)
3) a) You can lose up to 1% of your money. (If you setup a Stop Order at 1%) b) You cannot hide your profits from the IRS c) You need to hire somebody else to take care of your money.

You take your own risks (From 1% to 100%)
Both strategies work.