Study Up and Play It Safe When Investing

With the advent of the Internet and online brokerage firms, somehow the idea was spread that everyone could be a "day trader" and make money trading stocks online. Nothing could be further from the truth. As always, investing is a complicated, tricky matter that must be undertaken with the greatest seriousness and care. Sure, you can set up an online account and start buying and selling, but if you haven't put a couple of years (at least) into reading and study about it, investing can be a very brief, very expensive hobby. On the other hand, it is no longer true that you should just hand your money over to a "stock broker" and sit back, waiting for news. As is often the case, the truth is somewhere in the middle. The first thing you need to do is decide why you are investing. Is it to have retirement income? Is it to get as much return as possible, as quickly as possible, in order to invest in something else? Is it for the kids' college funds? Once you decide what you are investing for—one of these reasons, or some combination of them, or something else entirely—then you can decide, with some focused research and some help, how to handle your investing chores. In addition to the Internet sites that allow you to place stock trades, there are plenty of others that simply offer advice. Since there is a huge range of opinion about investing, it is best to get input from a variety of different sources, particularly ones that do not agree with one another. This is the best way to stay balanced and independent. You may discover that, along with a few long-term and insured investments, that you can afford to risk some reasonable amount of money in more active, "speculative" investing, which you can do with an online trading account. The potential for greater return carries greater risk, of course, so make sure to do your "due diligence" and study up. Remain a student, read a variety of different opinions, play it safe and don't put all your eggs in one basket. This way, investing stays fun—and won't ruin you. Comments (0) Show/Hide comments Write comment Show/Hide comment form Name Email Website Title Comment Add Comment