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Investing In Stock

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13y ago

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When you invest in stocks, it is risky. If you want risky, go with it. If you don't, try a GIC- Guaranteed Investment Certificate. In stocks, because they are risky, you get a higher rate of return, and in GICs, they are much less risky, so you get a lower rate of return...

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15y ago
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13y ago

Investing in stock is a good way to take the money that you have and watch it grow. The bank will technically pay you interest if you just put your money there, but this is not a good way to make a lot. The interest is too small. They give you such a little percentage that you will not make anything unless you have a ton of money in your account. Stocks go up at a much faster rate. You can take just a little of your money and double it in a few years. Sometimes you can double it in a few months.

There is some risk as well, though. The stock price may fall or the company may go under. If this happens, you will lose all of your money. At least you know that your money is safe as long as it is in the bank. The Stock Market can be a high-risk, high-reward situation. If you know what you are doing -- or work with someone who does -- you can reduce this risk so that there is no danger to you. This is your best option. There are brokers available who are professionally trained and can help you get a lot of money without the huge risks.

The way to invest is to buy stocks when the stock price is low. You want to get as many stocks as you can for as little money as possible. Then, wait for the stock price to go up. If you buy ten shares at one dollar a piece and then the stock price goes up to two dollars a share, you will suddenly have twenty dollars worth of value in the company. You want to take your money out when the stocks are as high as you think they are going to go. If the stock price begins to fall, you will have to decide if you want to take your shares out or hang on and hope that the company rebounds.

This is a very delicate and complicated situation. The whole trick is figuring out when a stock price has maxed out; you do not want to take the money out too soon or too late.

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