Question

Do you invest in the Stock Market (either in individual stocks or mutual funds) on an individual basis or in a 401k account? How do you choose the stocks or funds you purchase? Please no personal information, just basic discussion on risk vs. reward.

Answer 1

Investing in the stock market is the most reliable way to create wealth over long time periods.it might surprise you to learn that $1 10000 investment in the s and p 500 index 50 year would be worth nearly dollar 1.2 million today.

• To invest in the stocks firstly have to decide your investment approach.
• Decide how much you will invest in stocks or mutual fund.
• Open an investment account.
• Diversify your stocks.
• Continue investing.

It is very important to have the knowledge about where you are investing and the reason of your investing, in order to be an informed investor, it's important to state current on market events and opinions,reading blocks, magazines and online commission news in a simple form of passive research which can be done on a daily basis.sometimes a new article or blog post will from the foundation of a underlying investment thesis.

There are three simple ways in stock picking process:-

1. Find the ETFs which track the performance of the industry and check out their holdings. This can be as easy as just searching for industry X ETF, the official EPF page will disclose either all or only on the top holding of the fund.
2. Use a screener to filter stocks based on specific criteria, such as a sector and industry.Skinner of a users additional features such as sorting companies based on market cap, dividend yield, and other useful investment matrics.
3. continue searching through the blog share stock analysis article and financial news releases for ideas on companies in the choose an investment space. Remember that critical of everything you can analyse both sides of the argument.

It is a traditional thumb rule or rule of the thumb that" the higher the risk the higher potential return ", traditional statement is the higher the risk the higher the potential return and the less likely it will achieve the higher returns to understand the relationship completely you must know what you are risk tolerance is and be able to pause the relative risk of a particular investment correctly when you choose to put your money into investment that the square then the standard saving on money market deposit account, urine the possibility of experience.