| |
| |
|
Stocks Mutual Funds Investing Information |
|
|
|
Stock Market Investing Odds
The greatest stock market myth is the idea that investing in stocks is a form of gambling! The financial markets are often compared to a casino. Put some money on X stock and you might as well be playing craps! If that's your impression, and it's keeping you out of the markets, consider this: If investing is organized gambling, it's one of the rare kinds where the odds are stacked in your favor! Why is that? Corporate profits are the key to understanding the investor's edge. By buying a share of stock gives its holder an ownership claim on that company's earnings. If those earnings go up, then the stock price will usually rise as well. Makes sense, doesn't it? Ownership of a company that has higher earnings should be worth more than ownership of a company that earns less. An investment in the stock market comes down to this: It's a "bet" that corporate profits will rise! Based on the historical evidence, it's a pretty good wager! Not a guarantee by any means, but one where you hold house odds. Still not convinced? Maybe you're saying to yourself that just because corporate earnings rise in most years doesn't mean there aren't years in which they fall. True enough. But over the last 200 years, business profits have increased in far more years than they have decreased. And that's because the economies in the developed countries have expanded at a fairly steady pace with only several occasional setbacks from recessions. And that means stockholders with a good mix of companies are more likely than not to make money! Gambling just transfers money from a loser to a winner because it produces nothing ... excluding the severe doses of adrenaline! On the other hand, investing increases overall wealth because the capital invested in stocks provides the initial funding for firms, which exist for the purpose to producing goods and services. Copyright © 2005 I.E.C. Haramis Ioannis - Evangelos C. Haramis was born in Greece and he studied in Greece, USA and in Belgium. He has been active in the stock markets since 1972. Since 2002 he is New Business Development Managing Director at an Investment Bank.
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
What Are You Waiting For? Do you own any mutual funds? In an IRA or 401K or wherever. Privately or at work. Invest In The Stock Market For The RIGHT Reason, Using The RIGHT Choices Invest in the stock market for the RIGHT reason, using the RIGHT choices!Investing in the stock market is not purchasing a stock at 25 dollars a share, hoping it will go to 35 so you can sell it, then hoping it will drop back to 25 so you can buy it back, so that you can sell it again at 35, and so on and so forth.In my opinion, that is gambling. Kick The Tires Before you buy another car you walk around the lot, kick the tires, slam the doors and look at the mileage indicator. That's an odometer. Investment Capital Gains Have you bought any mutual funds this year or late last year while the market was doing its skyrocket thing? Last year it was hard to lose money. This year it has been easy. The Surgeon General The Surgeon General of the United States says that smoking cigarettes is harmful to your health. It is printed on every pack of smokes you buy. Acapulco - The Stock Market Dives There is a famous cliff on the ocean in Acapulco where experienced divers jump into the sea. It is very dangerous because the water at the base of the cliff surges from a depth of 2 feet to 12 feet. Perfect Storm Having lived aboard a sailboat for 2 years I was stricken when I saw the movie "PERFECT STORM". I know these are things you want to avoid at all costs. The Information Age It is wonderful to be alive in the information age. We know in a matter of seconds the change in the value of gold in Switzerland, the death of a world leader or the birth of a peasant in Israel. Will the Stock Market be Lower in October? The stock market often closes a week in the middle of a "perceived primary-trend range." SPX closed at about 1,234 Fri, which is between a multi-year Fibonacci level at 1,253 (i. Market Experience of a Naïve Stock Operator Sometime in the third quarter of 1997, someone told me that I should play the stock market. Knowing nothing about the stock market, I turned to some colleagues to seem to know a lot about it. What is a Mutual Fund? Ever wondered what is a mutual fund? A mutual fund is a pool of money run by a professional or group of professionals called the "investment adviser."A mutual fund is a company that pools money from many investors and invests the money in stocks, bonds, short-term money-market instruments, other securities or assets, or some combination of these investments. Money, Insanity and Wall Street Money: the most charged word in the planet. It means something to everyone. The Shadow The Shadow knows. There used to be a radio program called The Shadow where the hero, Lamont Cranston, the Shadow, would overcome the shadowy forces of doom by clouding the vision of those around him. Which Way The Market I am hearing predictions by brokers, financial planners, talk show hosts and the talking heads on TV that the market is going back to its old highs - DOW 11,700 and NASDAQ 5000 here we come.It seems to me that in 2000 I heard these same people saying there was no top to the market and were looking into their crystal balls for DOW 30,000 or some other fantastic number. Hot Stock Trader: How to Pick Momentum Stocks with Ease and Simplicity Most stock traders know that momentum trading can be a very profitable activity. You can make big amounts of cash in a short period of time. Different Types of Mutual Funds This is a guide to the different types of mutual funds. When it comes to investing in mutual funds, investors have literally thousands of choices. Investing in Trash Company Stocks Refuse is a serious issue in any society, about as serious as cleaning the water and air, even more so to some degree, especially if you study your history with regards to the plague. This is why it is considered one of the better long-term hold stocks to have in one's portfolio. Advantages and Disadvantages of Mutual Funds Outlined below are some of the advantages and disadvantages of mutual funds. Every investment has advantages and disadvantages. Seecrets on Investment: Tired of Making Huge Losses in the Stock Market - Part 2 Fundamental analysis.Fundamentals analysis says the best way to predict the future trends of a stock is to understand the financial figures of the underlying company. Buy and Hold Investment Philosophy Wall Street has been preaching the doctrine of Buy and Hold forever. The worst part about it is the small investor (and some big ones) actually believe it.
|
|
|
|
|
Home | Index | SiteMap | Click here for Indian Share Market Tips |
|