What is your tips on investing on stock market and what are its advantages and disadvantages?

In: Q&A

21 Aug 2010

I want to invest in stock market with a certain amount so my money will replicate. I want someone knowledgable or some with expertise on stock market to help me with this.

3 Responses to What is your tips on investing on stock market and what are its advantages and disadvantages?

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atrain10

August 21st, 2010 at 7:14 am

First of all, they pay people a lot of money for advice like this. That’s like asking how to defend yourself in a wrongful death case. You should research the shit out of the companies you are interested in. You should always be looking for the next big thing. I’ve just taken an Organizations class, but all I know is, the more you know about something, the better.

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blahblah

August 21st, 2010 at 7:20 am

The first thing you need to do is read. Ben Graham’s the intelligent investor is a good place to start and then look at books on Warren Buffets methods. Dont do momentum investing or day trading its to risky and the commisions will kill your returns. The best way to go is value investing all the way. I usually look intially for companies with 15 percent return on equity for at least 5 years and a p/e ration of between 5 and 15. Also look for a history of positive earnings. Thats real basic and then you will need to learn to read income statements, balance sheets, and understand cash flow and stuff but thats someplace to start.
If you dont have an ira you should get one a roth ira is best if you qualify. I recommend putting your ira in mutual funds and vanguard is by far the best company. Their expense ratios are way lower than other companies and this will pay off big in the long run. Well, I hope that helps. Good luck.

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arun prasad k

August 21st, 2010 at 7:20 am

If you are a beginner, the best way to go about is hiring a professional fund manager to guide you in investing. You can also invest indirectly by investing in mutual funds and hedge funds which are run by fund managers. When you develop adequate expertise and have sufficient time you can directly venture the stock market by picking the stocks that intrest you. The advantage of stock market is that it gives high returns. The disadvantage is that it also poses high risk. So if you are clear about your risk-return profile you can decide which asset class will suit you the most

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