6 Investment Facts That Will Ease Your Hesitations

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If you’ve considered investing but still find yourself hovering at the
brink, your problem could simply be that you’re not well-educated with the way
investments work. This prospect isn’t necessarily as dangerous as you think,
and the potential payoff is worth much of the risk. Consider these investment
facts and your outlook may change.

The Highs and Lows
Balance Out

http://farm3.staticflickr.com/2674/4111211837_a3a6f7e255.jpg

Image via Flickr by Iman Mosaad

The largest drop the Dow Jones average has ever taken in a single day is
777.68 points. This happened on September 29, 2008. However, the Dow Jones
average saw its largest single gain less than a month later on October 13, 2008
when the index rose 936.42 points. This just goes to show that even major dips
in the stock market will level out given time.

You Can Obtain
Insurance on Investments

The Securities Investor Protection Corporation (SIPC) will replace stocks
and certain other securities in the event that a brokerage firm fails. To enjoy
this benefit, you must choose an investment firm that is a SIPC member.
It’s important to understand, however, that this is not the same as FDIC
insurance protection which exists for certain types of savings accounts.

Investing Can Have
Major Long Term Benefits

Many people hesitate to invest simply because it seems so risky. They may
fail to realize that they invest and take risks every day regardless. Buying a
new dress is an investment in your wardrobe. Driving to the store is a risk.
Neither decision is likely to impact your life several decades down the road.
If you invest instead in something like a 401(K), your contributions could give
you millions of dollars to retire on in the future. Make your risks and
investments count.

Anyone Can Get a
Lucky Break on the Stock Market

Professional knowledge isn’t necessary for stock market success. A study of
more than 2,100 mutual funds revealed that there was no correlation between the
skills of the fund managers and performance of the funds. Much of what happens
in the stock market comes down to luck, meaning that anyone can get lucky.

You Can Minimize
Your Risk with One Simple Step

Investing in the index and not the individual stock instantly reduces your
risk in the stock market. A single stock can fall prey to problems within that
company. When you invest in the index instead, you’ll enjoy the same returns
with a lower overall risk factor.

Investing Wisely
Doesn’t Require As Much Time As You Think

While it’s important to stay knowledgeable about your investments, you don’t
have to babysit them on a day-to-day basis. In fact, the best investments are
long-term. Check up on your portfolio regularly, but don’t worry about buying
and selling every day to try to stay ahead of the trends. A simple strategy
with long-term goals is usually the best option.

Do your research, stay knowledgeable, and take advice from reliable sources
like Fisher Investments in
Forbes
. With a balanced and knowledgeable approach, there’s no need to
hesitate with your investment future.

Comments: 45

  1. Trang May 24, 2013 at 3:34 am Reply

    Korean stock market is very connected with US stock market. Due to subprime mortgage loan, Korean stock market got damaged a lot. Since subprime mortgage loan, I have been interested in this for so long time. Please tell me how Korean stock market stay independent from US stock market.

  2. Zena May 26, 2013 at 3:27 pm Reply

    I watch the news, I read the paper and I am an educated young woman. However, I am trying to understand, in lam-ens terms, what the stock market crisis means to me. How do I understand what is going on with out being blown away with a over indulged explanation. I have a 401k, I have had it for about 5 years. I am not concerned that I am losing money, what I am trying to understand is how will this effect a young mother of two, who is considered to be middle-class Americans.

  3. Tommye May 28, 2013 at 2:02 am Reply

    Such as: Do foreclosure increases affect the stock market and in what ways? What happens when deeds recorded decrease? What happens to the stock market when median home prices go down? What happens when new construction permits decrease? This is of course referring to residential real estate, but what about commercial real estate? Thank you very much for your input.

  4. Dyan May 30, 2013 at 6:53 am Reply

    I just wanna know how does one learn everything they need to know about the stock market. How do you learn about companies? Are there any basics i should know about playing the stock market. Is there a book i can read, a website i can go to, a class at community colleges i can take, etc. I’m an undecided major and it’s one of the subjects that i’m really interested in because i think this is something i would be good at.

  5. Garfield May 30, 2013 at 11:51 am Reply

    Heard a lot about the stock market and share business. Just completed my studies and planning to start a new business. Need expert advice in this regard.

  6. Codi June 25, 2013 at 11:32 pm Reply

    I’m an Indonesian and I am told that my country stock market going down has something to do with US’s stock market going down. Can anyone please help me explain the relationship? Or if this is true at all? Thanks a lot!

  7. Irwin June 26, 2013 at 8:57 am Reply

    I am working on an economics project, and I am supposed to write a paper about how natural disasters affect the stock market. While I find many websites talking about it and debating over the matter, I cannot find any straight forward answers. If you have any information I would love to hear it, along with any sources that you may provide 🙂 thanks.

  8. Horace July 3, 2013 at 12:03 am Reply

    See links below for evidence demonstrating that the stock market performs better during Democratic administrations than Republican administrations.

    http://www.frbsf.org/images/pdfcharts/el98-19a.pdf
    http://www.frbsf.org/images/pdfcharts/el98-19a.pdf

    dpj5: Let’s see if what you’re saying is true:

    As I look over the data, I see that the two of the three periods with the biggest gains (33-36, 97-01, and 49-52) involved Democratic Congressional majorities as well.

    The data do not support your claim. Please try again.
    John–Excellent points, but they also illustrate that the stereotype that Democrats favor regulation is not always true.

  9. Darron July 4, 2013 at 7:58 am Reply

    In 1929 the stock market crashed. Therefor leading to the great depression and horrible poverty. Why did the stock market crash?
    I dont have a test. I read books and in my book i am currently reading sea biscut. It never said why the stock market crashed so i was just wondering

  10. Isiah August 13, 2013 at 6:43 pm Reply

    I hear from many people that if the stock market is doing well that that necessarily means the economy is doing well overall. But with the recent increase in oil prices, stagnant wages, the mortgage/credit crisis, and a government with a lot of unfunded liabilities, I find this kind of hard to believe. Can anyone give some objective info on this question?

  11. Wm September 20, 2013 at 9:12 am Reply

    With the recent loss, if the stock market crashes what will happen? Is it in danger of crashing?

  12. Cleveland September 29, 2013 at 1:18 pm Reply

    I’m 15 and this whole situation with the stock market is everywhere, but I don’t feel effected. What’s gonna happen to people around my age? Will it be hard to pay for things like college?

  13. Brittaney November 17, 2013 at 2:37 pm Reply

    Hi,
    I wanna know about the stock market trading. Please tell me where can i get the information regarding that.

  14. Laci November 23, 2013 at 7:30 pm Reply

    I know very little about economics, the way the stock market works, the greater impact it has on the economy as a whole, etc.

    I know enough to know that all the things happening now are not good. This may be a silly question, but why are the dropping numbers so problematic? What happens when the stock market drops as low as it has been? How will this impact the economy, and individuals?

    This sounds like an essay question, and I’m not trying to cheat on homework anything. I’m really just curious, because I don’t know and I would like to.

    Thanks!

  15. Jerica November 27, 2013 at 4:57 am Reply

    I am totally ignorant when it comes to the stock market, So I need a game to teach me how to trade and how to pick the right companies.

  16. Donte December 16, 2013 at 6:20 pm Reply

    I am able to join the stock market through my employer. I work for Amazon, should I take advantage of this and join the stock market through them? I am 22 years old, I have no experience in the stock market.

  17. Werner December 16, 2013 at 6:20 pm Reply

    I have a lump some of money that I want to invest into the stock market, but im a bit nervous about it. I want to invest and pretty much be sure im going to capitalize off of it, not loose it all and be vary upset.

  18. Bailey January 27, 2014 at 6:55 am Reply

    Seems like for some, the stock market is a show. Seems like they make plenty of profits without the stock market? How do you tell which ones need stock and which ones don’t?

  19. Joelle February 2, 2014 at 6:32 pm Reply

    What is “Face Value” with regards to Stock market ? Please explain with example

  20. Maria February 2, 2014 at 9:01 pm Reply

    What is the stock market nowaday doing?

  21. Alfonso February 6, 2014 at 5:11 pm Reply

    can any one let me know how exactly does the stock market works???

  22. Rodrick February 10, 2014 at 11:01 am Reply

    I want to learn the stock market. Are there any books or anything I can do to learn it

  23. Delma February 21, 2014 at 10:40 pm Reply

    Ok i dont get it how do people make money on this, i have been reading at vangurad-there investor education. One of the examples where when people make money for when they are 65…..30 year investment???

    so how do all these young people driving there mercedes talking about they made it on the stock market how do they get so much money from it? buying one stock at a time? mutual funds??? how?

    please help i really want to understand how this works….any help and breaking it down for me would be useful…

  24. Rod February 21, 2014 at 10:41 pm Reply

    In one of my college classes, we briefely discussed the stock market. I’m interested in buying stocks but where do i buy them from and how do i pay for them? how do you start?

  25. Jody February 21, 2014 at 10:41 pm Reply

    Why do some counties have many different stock markets? Why do some countries only have 1? Why do some countries have 0 stock markets? Is stock market really necessary for a countries economy? Some people say stock market is just a casino run by the rich,elite,TPTB. is this true??

  26. Tiffanie February 22, 2014 at 12:48 am Reply

    Where do fellow investors think the stock market is heading in the future? Are there any certain stocks or sectors that will benefit most from today’s ‘troubled’ times in our(or most) economy(ies)?

    What advice would one give to a new investor who just made his first stock purchases in July(and is now -6%,lol) and wants to know tricks/advice to achieve success in investing

  27. Saundra February 22, 2014 at 1:41 am Reply

    what is stock market ?how the sensex moves?

  28. Mary February 22, 2014 at 4:15 am Reply

    what is investing?
    what is stock?
    what is the stock market?
    please tell me everything you know.
    cheers

  29. Hoyt February 22, 2014 at 4:38 am Reply

    I Really dont understand , i just saw a video in the 80s of loads of men shouting and doing signals to each other , then leaving work with a bottle of champagne!
    Dont worry im not stupid so i will understand a detailed answer,And also what is required eg.Qualifications to work in this ‘Stock Market?

  30. Belle February 22, 2014 at 6:46 am Reply

    Hi! I was curious as to how the stock market works & how people make money off of it & how they lose money from it. I’m trying to learn about the economy, & so yeah. xD
    Yeah, but like… what makes people decide they should invest in a stock? Why would they take the risk? Is it possible to lose the stocks?

  31. Charlsie February 22, 2014 at 6:46 am Reply

    Hello, i wanted to learn more about the stock market and how it works.
    and how the person can sell and buy from his place (is that posible to be at home doing that?)
    i wanna learn all posible detailes befor going through this experiment
    thx alot

  32. Porter February 25, 2014 at 1:48 pm Reply

    i am interested in online trading, but i have no idea about stock market.is there online tutorials that gives fundamentals of trading.

  33. Ryan February 25, 2014 at 1:49 pm Reply

    At school I am learning about the stock market crash, etc and I just don’t really get what shares are, etc. Could you please explain how it works? Thnx. 🙂

  34. Socorro February 28, 2014 at 2:48 am Reply

    I don’t know anything about stock market. But I’ve heard people earning a lot by investing in stock market.
    *How much can I invest? Whats the minimum investment?
    *What are the requirements for me to invest in stock market?

  35. Antonia March 5, 2014 at 7:28 pm Reply

    Please help me!!!
    This is just for homework, but I don’t really know what a stock market is…

  36. Taylor March 12, 2014 at 8:11 pm Reply

    How does the stock market work?

  37. Rey March 13, 2014 at 1:28 am Reply

    what does the stock market do? also what do banks do? can anyone please simplify it for me?

  38. German April 2, 2014 at 6:48 am Reply

    Can anybody explain to me what a ‘stock market’ is?
    I’ve tried researching but most of them, I’m like, ‘..what..?’
    Assume I don’t know anything about it!

  39. Mira April 3, 2014 at 12:01 am Reply

    i know the economy’s not so good right now, but i’ve always wondered this. is it possible to invest a very small amount of money in the stock market? like if i picked the right stock, could i turn $100 into $120? or does it not work that way? do you need a stock broker and huge amounts of money?

  40. Cherilyn April 3, 2014 at 12:01 am Reply

    I really want to know a whole lot about the stock market, It’s just soo interesting. I want to also know some good ytips about stocks and How to manage them and How to get good prices. (:

  41. Porter April 17, 2014 at 6:37 pm Reply

    So I know the basic background of a stock market. But, per-say, I buy a stock from google. Now I what can I do with that besides SELLING IT? What authority give it allow me?

    I’m new to stock, so please be as specific as you can, I am starting to take interest.
    If you can, try to explain the following questions:
    1). What is the difference between like a stock broker, and someone who buys/sells stocks?
    2). Who is elligible to “play” with stocks?
    3). Who runs the market, who even thought of this idea?
    4). Anything helpful to get my started (Websites, words of wisdom, etc).

    Thanks!

  42. Donita April 27, 2014 at 5:15 am Reply

    ok so i always see guys looking at computer for stock markets or something? what exactly are they doing? can someone explain to me what exactly is it that they’re doing?

  43. Ronald April 30, 2014 at 12:59 pm Reply

    Do any of you know the history of the stock market. When and why
    did it come into being?

  44. Santo May 13, 2014 at 10:21 pm Reply

    What is stock market actually? and what are its functions? and many more information, if anybody can…..

  45. Ruth May 20, 2014 at 4:25 am Reply

    How is a casino differ from a stock market??? Some kind of.. You win some, you lose some???

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