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Thursday, March 19, 2009

Ways To Invest and Make Money In Stock Mark

The Stock Market

The economy these days seems to be constantly declining. Everyone is asking the same questions; "how can I make more money," "how will I survive financially," "what should I do with my money, who can I trust?"

The economy is bad, but you can still thrive in it. You have to be smart with your money, contrary to what many believe the stock market is still a great place to invest as long as you know how.


Who To Choose

With all the financial scams and government bailouts spreading around, how can you know who to invest in?

To start with, you want to invest in companies that are well known and are not likely to crash. The companies you pick don't have to be large, million dollar, businesses, and they don't need to be centuries old. You should think of companies that you believe will be able to thrive even in this economy.

Do some research

You can see a company's previous stock levels. Look for patterns and trends that seem to repeat each year.

A company like Hershey probably hits it's peak during holidays like easter and halloween.

Many stocks change according to the season.

When you buy a stock you should make a chart that shows how much you paid for the stock and update it every week or even every day and track your profit/loss so you'll know when to sell.

A Stock Market Minute

Notice I said the "companies" you choose. You should invest small amounts of money in many companies. Don't throw all your money into one hole. That hole might grow quickly, but remember it can disappear completely in a stock market minute!

Don't spend it all in one place

If you invest in several companies and one of your stocks crashes, at least you still have others. That is why you should split up your assets.

Also, invest in small amounts at first until you learn the market better.

How Long To Invest

You also need to decide if you want to invest short term or long term. If you are looking to make money now, you'll want short term.

Short term is where you find cheap stocks that are likely to rise in the next few weeks. You may only make a small profit, but you take the profit and invest it along with your capital and after a while you have doubled your money and then you double it again, again, again, etc.

Long term investing can take several years, but may pay out better in the long run. Also you don't have to keep finding new investments, you pick a few to invest in, buy more shares every month or so, and cash in after a year or more.

The Wild Stock Market Roller Coaster

When you buy into the stock market you hop on a roller coaster, hold on!

Sometimes the ride will go lower, sometimes it will peak out.

Don't get discouraged if the stock drops lower than when you bought it, wait it out until it rises again. Many people will take a small loss because they are afraid that it will drop lower. Often times a stock will drop, drop, drop and then rise, rise, rise, rise, rise!!! Be patient.

And of course, when you get to the top SELL SELL SELL!!!

It is a very wild ride, but if you strap yourself in and wait it out you may find yourself rolling in dough!

Invest

These tips will help you learn to invest, and make money, in the stock market.

Just remember:

-Invest small amounts
-Research well known companies
-Buy low
-Sell high
-Have fun!

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