Comments on: Why people lose money in stock market http://political-economy.com/why-people-lose-money-in-stock-market/ Economics and Politics - the real story Fri, 18 May 2012 14:02:40 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Mark Biernat http://political-economy.com/why-people-lose-money-in-stock-market/comment-page-1/#comment-556 Mark Biernat Mon, 02 Aug 2010 20:07:22 +0000 http://political-economy.com/?p=1308#comment-556 I think there is always more risking being out of the market than being in because in a growing economy the market usually goes up. So that is the first thing to consider. As long as stock market money is not your last penny do not be afraid to take some risk as long as you do it wisely. Second, yes there is a lot of uncertainly in the markets, like always so no one has the answers, not me or the President. However, if you have a sum of money to invest, one thing you might want to consider is entering the market in systematic allocations, or dollar cost averaging in. It is a conservative way to approach it. That means today you invest 10 or 15 percent of your free capital and do the same next month. After a year you are fully invested. This takes the risk out having a downturn the next day or week. Me I tend to be more aggressive but I do not want to advice that here as I have lose money sometimes. I personally would put 1/3 or so in this month, if I was not already fully invested and 1/3 the next. Index funds are great. I love them to invest in. You could try to put part of your money in an index and see how it goes. They are diversified and do fairly well in the long-term. I do not invest any more in them prefer individual stocks, but if you want to get your feet wet, I really love indexes. I can not give direct advice here (that is why I might sound a little wishy washy), all I can state is my opinion about my personal investment strategy. I think there is always more risking being out of the market than being in because in a growing economy the market usually goes up. So that is the first thing to consider. As long as stock market money is not your last penny do not be afraid to take some risk as long as you do it wisely.
Second, yes there is a lot of uncertainly in the markets, like always so no one has the answers, not me or the President. However, if you have a sum of money to invest, one thing you might want to consider is entering the market in systematic allocations, or dollar cost averaging in. It is a conservative way to approach it. That means today you invest 10 or 15 percent of your free capital and do the same next month. After a year you are fully invested. This takes the risk out having a downturn the next day or week.
Me I tend to be more aggressive but I do not want to advice that here as I have lose money sometimes. I personally would put 1/3 or so in this month, if I was not already fully invested and 1/3 the next.
Index funds are great. I love them to invest in. You could try to put part of your money in an index and see how it goes. They are diversified and do fairly well in the long-term.
I do not invest any more in them prefer individual stocks, but if you want to get your feet wet, I really love indexes.
I can not give direct advice here (that is why I might sound a little wishy washy), all I can state is my opinion about my personal investment strategy.

]]> By: David http://political-economy.com/why-people-lose-money-in-stock-market/comment-page-1/#comment-555 David Mon, 02 Aug 2010 13:28:28 +0000 http://political-economy.com/?p=1308#comment-555 Hi, I'm following your blog and it's so interesting for me. I have been looking at the SP500 chart and lasts weeks, the index has broken up the 12 months MA at the msn.com charts. Does it mean that its the time to buy a index fund on sp? What do you think, could I buy now or wait something? Hi,

I’m following your blog and it’s so interesting for me. I have been looking at the SP500 chart and lasts weeks, the index has broken up the 12 months MA at the msn.com charts. Does it mean that its the time to buy a index fund on sp?

What do you think, could I buy now or wait something?

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