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Originally Posted by soma[SIZE="4"
Conclusion[/SIZE]
In the end, even with the help of this guide, I recommend against investing in the stock market. Why? As an individual investor, the odds are stacked heavily against you. This is why I urge in the beginning to never invest anything you cannot afford to lose. Start first by investing using a fantasy stock trading game before doing the real thing.
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Oh, Soma, looks like you and me are gonna have some words
Perhaps we'll just have to agree to disagree here, but I highly recommend individual investing
intelligently into the stock market market.
Certainly, you put a lot of good information up there, but (at least in my opinon) is not necessarily useful to the individual investor.
Perhaps I'm being overly simplistic, but unless someone is planning on either initially investing a ton of money in the market, or just has way too much time on their hands to analyze stock market trends, entry and exit strategies have little to do with individual investors.
Then again, I'm a firm believer in the Buffet method - just buy and hold, hold, hold. Sometimes the stock market will dip - other times it may skyrocket, but over the long haul, the stock market has continued a northword trend. Certainly not at incredibly fantastic rates, but an average return of 11% per year ain't bad.
At any rate, if you dedicate a few hours a year to research, I'd be willing to bet that the average investor could at least match the market, if not beat it. It certainly seems a better option than mutual funds - over 80% of them fall short of what the market earns. You'd be better off just buying Spyder shares.
Either way, thanks for the guide - it does have a lot of great info!