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winswallstree
Can anybody tell the risk of investing in stock market??
Thanks in advance!
Thanks in advance!
That does not follow. It is like saying that since race car drivers crash sometimes, amateurs shouldn't drive. JP Morgan was doing something completely different from what we amateurs do and many amateurs do a fine job managing their investments.M Quack said:There is recent experimental evidence (to the tune of several billions of dollars) that not even highly trained professionals understand the risks of investing in stock market.
What do you expect to learn from a bunch of amateurs?
While that's true, it is also true is that you don't need to know much to invest with decent return and low risk. So the key then is self awareness: know what you don't know and don't step put of your depth.nucl34rgg said:Suffice it to say, the risk is high if you don't know what you're doing.
M Quack said:There is recent experimental evidence (to the tune of several billions of dollars) that not even highly trained professionals understand the risks of investing in stock market.
russ_watters said:While that's true, it is also true is that you don't need to know much to invest with decent return and low risk. So the key then is self awareness: know what you don't know and don't step put of your depth.
DeadOriginal said:I forget the name of the professor who showed that over a 25 year period, stocks are actually safer than bonds. You can also expect to have an average gain of 8% on your portfolio over that 25 year period.
This is of course under the assumption that you are adequately diversified and have done the right research to know that the companies you invest in are financially stable.
If you are planning on investing short term to make $3262643264643643 then good luck.. its not happening.
http://www.fool.com/investing/general/2012/05/22/is-this-why-facebooks-ipo-flopped.aspxIPO has now officially flopped. After shares popped for literally one minute on IPO day up to $45 only to close almost exactly at the offer price, shares promptly got crushed on Day 2 and have reached as low as $30.98 as of this writing on Day 3.
http://finance.yahoo.com/news/facebook-ipo-shows-galactic-divide-005837993.htmlReuters reported late Monday that Morgan Stanley cautioned major clients about revised revenue expectations in the days leading up to the stock's market debut. Goldman Sachs and JPMorgan Chase, also underwriters of the IPO, cut their estimates for revenue.
. . .
They should have started at $28. Acutally, they should have started lower based on PE.
The corporate body FB, sold a fraction (~14%) of shares to raise money.Office_Shredder said:I don't understand this argument. Facebook's responsibility when doing an IPO is not to price the stock so the people buying it can make money off the stock price going up. Facebook's responsibility is to sell the stock for as much money as they can. If people thought that the stock was overpriced (and they should have) they just shouldn't have bought it
The can be rewards and losses.winswallstree said:Can anybody tell the risk of investing in stock market??
Thanks in advance!
Yes, something the amateur investor who really can't afford to lose any of the money he might invest should keep in mind.daveb said:Yes. You could possibly lose money.
Granted, it depends on the definition of "surplus", but I took ruthevans41's statement to imply that "surplus" is money you don't mind losing, which is just plain an improper way to look at investing. Investing is not meant to be looked at like a weekend trip to Vegas where if you take $500 with you, you don't mind if you lose it all because it is just spending money. For the vast majority of people, the purpose of investing is to grow your savings so you can live on it when you retire and so you should be investing with a strategy that provides relatively safe growth. But opting for complete safety (insured bonds, for example) will result in a lower standard of living in retirement while only slightly mitigating the risk (because the risk with a diversified stock fund is very low, long-term).jtbell said:It depends on how you define "surplus."
The stock market refers to the collection of markets and exchanges where buying, selling, and issuing of shares of publicly-held companies takes place. It is also known as the equity market or share market.
To invest in the stock market, you will need to open a brokerage account with a reputable broker. You can then research and select stocks to buy and sell through your broker. It is important to have a solid investment strategy and to diversify your portfolio.
Investing in the stock market comes with risks, such as market fluctuations, company bankruptcies, and economic downturns. It is important to carefully research and monitor your investments and to have a diversified portfolio to mitigate these risks.
The amount of money needed to invest in the stock market varies depending on your investment goals and risk tolerance. Some brokers allow you to start with as little as $100, while others may require a minimum of $1,000. It is important to only invest what you can afford to lose.
You can track your investments in the stock market through your brokerage account, which will provide you with real-time updates on the performance of your stocks. There are also various financial websites and apps that can help you track and analyze your investments.