Archive for the ‘ Stocks ’ Category

Stock Investing Vs Bond Investing

When it comes to investing money most folks know that stock investing can be tricky business, although they don’t really understand it. Few know anything about bond investing, period. Here we shed some light on these two major investment options, and compare and contrast.

Money management basics: People get into stock investing to get growth (price appreciation) and maybe some income in the form of dividends. They get into bond investing primarily for the income bonds pay; because bonds pay more interest then they can get at the bank.

Money management rule #1 about stock investing: Stock prices fluctuate, which creates risk. Anyone investing money in a good (bull) stock market can make money. In a falling (bear) market virtually no average investors make money. Instead they lose it.

Money management rule #1 about bond investing: Bond prices fluctuate, which means that there is risk associated with bond investing as well. Bonds are safer than stocks because bond price fluctuations are not usually as severe, and bonds pay higher income (interest) than stocks do (dividends). But beware; you can lose money in bonds.

Now let’s take a closer look at investing money in these two investment options.

Scenario #1: Good financial and economic news turns to a steady barrage of bad news in the headlines. Stock prices plunge and continue to fall. Bond prices rise as investors sell stocks and buy bonds. This is called a flight to safety. Many investors use the investment strategy of investing in stocks AND bonds both to offset stock losses in a situation like this. Read more

2011
07/03
CATEGORY
Investment
Stocks
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Make Money Investing in Any Stock Market Situation

How do you make money investing in a stock market that falls over 600 Dow points and then gains most of them back all in a matter of minutes, as in early May of 2010? Where do you invest money when uncertainty is running high? Even average investors can make money investing online in a simple brokerage account IF they know their investment options. I’ll show you how.

Average investors used to be limited when it came to investing money. Mostly they just played the stock market through their brokerage account, buying and selling individual stocks, like GE or Ford or perhaps some penny stocks. In a volatile and/or declining stock market they lost money, because other investment options evaded them… were too complicated, and the domain of the rich and financially sophisticated. Today, by simply investing online in a discount brokerage account, you can make money investing in all kinds of investment options by simply buying and selling the right stocks.

These stocks are called ETFs (exchange traded funds), and they trade just like other stocks on major exchanges. With a major discount broker, investing online can cost $10 or less per trade, and your BUY or SELL market order is executed in a matter of a few seconds. So, what’s so great about these ETF investment options, and how do you make money investing online in them? Let’s talk about early May, 2010. The stock market had been up for over a year, with very little volatility. The economy was picking up and the financial crisis was old news… until Europe took center stage with debt problems. Read more

2011
07/03
CATEGORY
Stocks
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