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What is the best type of stock in which to invest and why?
TenTibias
There are a wide variety of stocks to invest in and what may be a good investment for one person is rarely good for another. You need to think of how active you will be as a trader. Will you be monitoring the stock during the day? or will you just check in once a week or two? How much risk are you willing to take? How much are you willing to lose on a trade that does not work?
If you are just starting out, you could probably look at Exchange Traded Funds or ETF's. These are a basket of stocks rather than just a single stock that is matched to a Stock Market index. This is like buying a portfolio of stocks rather than a single stock and so it does not generally experience the whipsaw like actions that individual stock can have. Stocks that have a yield will return part of the companies profits to the shareholders.
Go to your bank and chat with a financial advisor. Above all, do not risk more than you are willing to lose and always do your due diligence before investing.
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∙ 12y ago
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