Title: 5 Things You Should Know Before You Invest On The Stock Market

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481

Summary:
The stock market is an untamed animal, a wild beast. Sometimes, it is a raging bull that lifts and throws all stocks upwards into the sky. Sometimes it is a marauding bear that beats all stocks into the ground with brute force. And if you are entering the stock market, you have to ride this beast. It can be a rough ride or it can be smooth one depending on how you handle yourself. But, hey, you can take your precautions and plan your investments well if you keep these five fa…

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The stock market is an untamed animal, a wild beast. Sometimes, it is a raging bull that lifts and throws all stocks upwards into the sky. Sometimes it is a marauding bear that beats all stocks into the ground with brute force. And if you are entering the stock market, you have to ride this beast. It can be a rough ride or it can be smooth one depending on how you handle yourself. But, hey, you can take your precautions and plan your investments well if you keep these five factors in mind:

1. There is always a limit: Every player on the stock market must not play beyond his means. The bottom line is that if you play beyond your financial capacity, and something goes wrong, you will end up with a loss of face and your family will feel the aftershocks. It’s better to control risk appetites and adventurism while playing the stock market – after all, it is a market, not a jungle that needs to be explored.

2. There is no room for emotions: Never ever get emotionally attached to any stock. Stocks are an asset class and you must look at them as such. If you don’t, and you keep holding a stock no matter what, then you will lose out on many opportunities to make money.

3. Book profits, stop losses: Profit is like a burglar – if you don’t catch it, it will run away. Loss is like an insurance salesman – if you don’t shake it off, it will stick to you. Therefore, you must always book profits and cut losses in the stock market – all the big guns have done it and they’re human beings, just like you. So, why shouldn’t you? Get the point?

4. No one can time the market: You have to be God to predict the market movements, which you aren’t. So, be happy when you get in, be happy when you get out, don’t regret, don’t fret and SMILE no matter what you do, provided you do it right.

5. It pays to know: It will pay you well if you understand the stock you are buying into. What are its finances? Is it making profits or losses? Is the market price right? Is the management clean or are they sons of Enron? Does the industry have a bright future? Look, you will make a load of money if you know what you are doing in the stock market. So, get savvy with figures and with the economic and global trends. Analyze all the factors affecting a stock and then act.

Well, these are some basics you have to understand before you enter the stock market. Obviously, you will make mistakes, but that’s normal – every stock market player does. Just take care to play the market by the book and that will ensure that you will ride on the booms and weather the busts.

Title: Investing in Socially Conscious Stocks

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506

Summary:
You may want to be socially conscious and do the right thing, both in your own community and in the larger global community

Keywords:
loans

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You may want to be socially conscious and do the right thing, both in your own community and in the larger global community. Perhaps you are concerned about environmental issues or about opportunities for fair trade and human rights, or maybe you are passionate about protecting wildlife or promoting healthy diet and exercise for young people. Whatever your area of interest and moral or ethical position, you may want to act in a way that is in accordance with your personal beliefs and convictions. But at the same time, you may be interested in making money in the stock market. Many see this as an irreconcilable conflict, but it doesn’t have to be, thanks to many stock funds that have been created to specifically cater to the needs of people who want to play the market without compromising their own personal values.

Mutual funds are a great way to delve into the socially conscious side of Wall Street. These are not single stocks, but groups of stocks that are managed by trained professionals. When you buy a share in a mutual fund, you are essentially contributing funds to a mutual fund, and then the fund’s manager will use that money to buy stocks that he or she thinks will do well and meet the goals of the mutual fund’s investors. Because these funds value diversity of assets, they are somewhat protected from the risk of only owning shares of an isolated company. And these days there are many mutual fund companies that specialize in socially conscious investing. When you buy into their funds, they promise to use your money only for investment in companies that promote the things you believe in, so you get two benefits. First, you get the peace of mind of knowing that your stock market investments are for good causes. Secondly, you get to promote your causes and support the companies that share your values, by putting your hard-earned money behind your commitment to those values. When get to own shares in companies that are trying to succeed by doing the kinds of things you want to see done in the world, so you have a chance to reap both financial rewards and personal satisfaction.

You can also buy stocks in individual companies, by doing some background research to find out which ones meet your standards. For example, if you want to help protect the environment from companies that pollute, you could buy stock in companies that make “green” products like alternative fuels that don’t contaminate the atmosphere. Or you can buy stock in companies that clean up oil spills, plant trees, or manufacture biodegradable consumer products.

The idea is that you can have your cake and eat it too. It is possible to make money in the stock market and at the same time remain committed to socially conscious values, by putting your money into the right stocks. To learn more, talk to a knowledgeable stockbroker and ask for a list of companies that fit your criteria.

Title: Stocks Or Mutual Funds?

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537

Summary:
If you happen to have some money left over at the end of all the bill payments and you have no need for anymore toys, or even if you are beginning a prudent and fiscally responsible gamble on some wealth that incorporates investment opportunities, you may find yourself wondering whether investing in stocks or purchasing mutual funds will offer the best returns. You might also consider this question when considering how to set up a retirement fund.

In order to help make the…

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If you happen to have some money left over at the end of all the bill payments and you have no need for anymore toys, or even if you are beginning a prudent and fiscally responsible gamble on some wealth that incorporates investment opportunities, you may find yourself wondering whether investing in stocks or purchasing mutual funds will offer the best returns. You might also consider this question when considering how to set up a retirement fund.

In order to help make the decision, it is important to understand what stocks and mutual funds are.

Stocks: Most people believe they have a basic understanding of what stocks are, simply because of their exposure to the term in every day usages. Stocks are individual bits of companies that are available to be purchased by the public in open trading on the stock exchange. Stocks are often sold in bundles, and thus to purchase a stock in a specific company often entails some kind of minimum purchase. Stockholders have a vested interest in the company’s well-being, as the price of their stocks are directly related to a company’s performance. Stocks are divided according to the kind of business they represent, which is known as a sector.

Mutual Funds: Mutual funds are collective investments that pools the money from a lot of investors and puts the money in stocks, bonds, and other investments. Mutual funds are usually managed by a certified professional, as opposed to the individual management of stocks. In essence, mutual funds incorporate many different types of stocks.

The question of whether or not to invest in stocks or mutual funds will primarily come down to the personal expertise and wealth of the individual. Many people will be tempted by the “game” aspect of buying stock, as well as the chance to invest singularly in a company that is well-known or can be easily researched. The fact is, however, that by the time stocks become available on the market they are generally already highly priced, and investing in individual stocks is a highly risky maneuver as your entire process hangs on the well-being of just one company. Even wealthy investors diversify their portfolios by investing in several different types of stock, and this can simply be unaffordable for the average person.

The better bet for the beginning investor is to purchase mutual funds. Mutual funds will pool the costs of many different stocks, lessening the risk of losing your money and raising the chances of gain. Mutual funds may not provide quite the excitement of investing in a lucky stock, but they are good investments for a long-term financial opportunity. In addition, mutual funds are managed by professionals that are well acquainted with the pitfalls and opportunities of the investment sector, which will cut down on both risk and the time it would take to pick individual stocks through research and appointments. Mutual funds will also distribute the risks among several investors, and it is all managed by someone who likely has contacts within the financial world.

For the individual with some extra money, who does not have the time or the expertise to properly “play” the stock market, mutual funds will prove the better option.

Title: Penny Stocks and the Investments

Word Count:
416

Summary:
Recently, investors commence sharing in the penny stocks. This action occurred especially after investors began to realize that they had the ability to invest chump change in a selection of companies. In short, investors could invest a few pennies or dollars in small companies around the United States. Since Forex and the stock market exchange industry has higher risks many newcomers to the stock market will invest in penny stocks.

Keywords:
stocks,investments

Article Body:
Recently, investors commence sharing in the penny stocks. This action occurred especially after investors began to realize that they had the ability to invest chump change in a selection of companies. In short, investors could invest a few pennies or dollars in small companies around the United States. Since Forex and the stock market exchange industry has higher risks many newcomers to the stock market will invest in penny stocks.

Penny stocks allow investors to put up five bucks and potentially win $25. If the investors lost their money, so what, it was only a few pennies or dollars.

For the most part, it is simple to invest in penny stocks. Investors must open broker accounts online to get started. These accounts are compared to bank accounts. Brokers will charge small fees, which is subtracted from the account each time a holder invests in the stocks. These fees will cover basic account duties that the broker tends to.

Brokers do not give advice. These people invest in stock markets themselves. To get advice the investors must pay nominal fees for stock newsletters. The freebies will mislead investors, so experienced investors will avoid these offers. Most of the freebies will also direct investors’ right into scammer hands.

Paid newsletters are regulated by the law. You pay a few pennies to get the information. This is a great option if you intend to invest in penny stocks.

To find a broker visit the Internet. You will find quality services and other offers to help you learn about penny stocks. Read the paid newsletters so that you know what you are getting into. NEVER step in to stock market without being informed.

You will find plenty of stock articles online too. Use the articles as your guide to learn about stock markets. Be careful since some articles may mislead you just as the free newsletters will. Make sure you search for articles that include facts and evident links to verify statements, recommendations, et cetera.

When you are informed, you get the most of your stock experiences. If you are new to the stock market, start with the penny stocks first and then move to other types of stock marketing.

Forex stock market, (Foreign Stock Market Exchange) exchange and stock markets often request that you invest a large amount of cash to get started. Learn the ropes by starting out small and then moving to larger investments in stock markets after you feel confident that you know what you are doing.

Title: You Can Invest in Marijuana Legally on the Stock Market

Word Count:
514

Summary:
A few decades ago, research into the medical benefits of marijuana was common, and was funded by both private and public grants. Almost every major university had some program underway for studying the subject

Keywords:
loans

Article Body:
A few decades ago, research into the medical benefits of marijuana was common, and was funded by both private and public grants. Almost every major university had some program underway for studying the subject. But as government began a more aggressive approach to regulating or prohibiting drug use, marijuana research fell by the wayside. Many of the same studies became illegal, and those found to be doing such research faced harsh penalties, including extensive jail time.

But during recent years, scientists and medical doctors – as well as their own patients and groups dedicated to legalizing marijuana for medical use – have made headway, and now marijuana use is officially sanctioned in many jurisdictions. In places like California, for example, it is possible to obtain prescriptions to use it for medical purposes. Many who use this medicinal pot claim that it works well for treatment of chronic pain, treatment of glaucoma, and other maladies. Because of the increase in popularity of marijuana as a medical drug, many companies are hoping to profit from this drug, by growing, distributing, or otherwise providing marijuana to consumers who need it as a prescription medication.

The global healthcare company Bayer – known mostly for its household name aspirin products – for example, recently signed licensing agreements with a small biotech company in the United Kingdom that specializes in efficient deliver of the active ingredient in marijuana. By providing this active chemical component in an aerosol spray, the company hopes to attract those users who are concerned about the bad health effects of smoking pot. Other mega corporations are experimenting with ways to provide medical marijuana on a large scale. If the drug ever becomes legal, they want to be ready to capitalize on the new market and get the jump on their potential competition.

By buying stock in companies that are positioned to benefit from the future of medical marijuana, you can get in on the ground floor of any potential breakthrough in this biotech and healthcare sector. But because the drugs are not yet profitable – at least to those selling them legally – many investors who put money into backing companies that are primarily in the marijuana business may not see earnings for many years, if ever.

A safer bet is to buy into companies that are already profitable by selling prescription medicines. If marijuana research convinces legislators to allow it to be sold like ordinary medicine, these companies will surely get a piece of the action. They may get their market share of the business by packaging and distributing it, by coming up with new medicines based on it or by growing the raw product and converting it into usable prescription medicine. But in the meantime, if you have invested in these companies in order to take advantage of the profits that might come from marijuana, you don’t have to simply sit and wait for the future. By investing in solid, profitable companies, you will benefit immediately. And if the future is bright for medical pot, you’ll be positioned to take full advantage of the new and revolutionary products.

How to Know When to Sell Your Stocks

While quite a bit of time and research goes into selecting stocks, it is often hard to know when to pull out – especially for first time investors. The good news is that if you have chosen your stocks carefully, you won’t need to pull out for a very long time, such as when you are ready to retire. But there are specific instances when you will need to sell your stocks before you have reached your financial goals.

You may think that the time to sell is when the stock value is about to drop – and you may even be advised by your broker to do this. But this isn’t necessarily the right course of action.

Stocks go up and down all the time, depending on the economy…and of course the economy depends on the stock market as well. This is why it is so hard to determine whether you should sell your stock or not. Stocks go down, but they also tend to go back up.

You have to do more research, and you have to keep up with the stability of the companies that you invest in. Changes in corporations have a profound impact on the value of the stock. For instance, a new CEO can affect the value of stock. A plummet in the industry can affect a stock. Many things – all combined – affect the value of stock. But there are really only three good reasons to sell a stock.

The first reason is having reached your financial goals. Once you’ve reached retirement, you may wish to sell your stocks and put your money in safer financial vehicles, such as a savings account.

This is a common practice for those who have invested for the purpose of financing their retirement. The second reason to sell a stock is if there are major changes in the business you are investing in that cause, or will cause, the value of the stock to drop, with little or no possibility of the value rising again. Ideally, you would sell your stock in this situation before the value starts to drop.

If the value of the stock spikes, this is the third reason you may want to sell. If your stock is valued at $100 per share today, but drastically rises to $200 per share next week, it is a great time to sell – especially if the outlook is that the value will drop back down to $100 per share soon. You would sell when the stock was worth $200 per share.

As a beginner, you definitely want to consult with a broker or a financial advisor before buying or selling stocks. They will work with you to help you make the right decisions to reach your financial goals.

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Title: Why A Bull Run In The Stock Market Is The Time To Take Profits

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430

Summary:
A bull market is when the economy is doing fabulous, jobs are easy to find, and the gross domestic product is growing. Stock are going up and everything is peachy! That why a bull run in the stock market is the time to take profits higher. A bull market makes picking stocks very easy with everything is on the rise you just can’t go wrong.

But remember that bull market cannot last a lifetime which is why a bull run in the stock market is the time to take profits higher…

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A bull market is when the economy is doing fabulous, jobs are easy to find, and the gross domestic product is growing. Stock are going up and everything is peachy! That why a bull run in the stock market is the time to take profits higher. A bull market makes picking stocks very easy with everything is on the rise you just can’t go wrong.

But remember that bull market cannot last a lifetime which is why a bull run in the stock market is the time to take profits higher. Eventually it will turn around and suddenly you will be in a bear market. A bull market is forging ahead strongly can become dangerous with overvalued stock.

Bull markets are about optimism which is why a bull run in the stock market is the time to take profits higher. It’s an exciting time for an investor with rising indexes stock values go up which is why a bull run in the stock market is the time to take profits to a new level. Practice will make you a great player in no time.

If you aren’t familiar with options it’s a way for a small investment to become big. When you purchase a call option you buy the right to purchase the stock from the call seller at a named price and by a specified date.

On a bull run you never actually buy the stock but instead sell it to another investor for more than you paid for it before the expiration. That’s why a bull run in the stock market is the time to take profits to a new level.

You can sell your call option to anyone who is wants to exercise it. You can then sell your call for at least $20 more right now and if you hang on in the bull market you are likely to be able to get even more which is why a bull run in the stock market is the time to take profits higher.

That’s just one example of why a bull run in the stock market is the time to take profits to a new level. You can quickly see how easy it is. Only one word of advice – always have your exit strategy planned.

Now that you know why a bull run in the stock market is the time to take profits home what are you waiting for?

Copyright © 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author’s information with live links only.)

Title: When You Must Exit In Stocks

Word Count:
531

Summary:
There are a lot of articles that talk about how to get in to the stock market. Which is great. A lot of people want to get in to the stock market but don’t know where to start. However once all of these people get in to the market, they need to know how to get out. After all the money you make on the stock is not made when you get in to the market. The money you make on the stock market is made when you get out of the market that is when you sell your stocks. Hopefully you wi…

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finance,investing,stocks

Article Body:
There are a lot of articles that talk about how to get in to the stock market. Which is great. A lot of people want to get in to the stock market but don’t know where to start. However once all of these people get in to the market, they need to know how to get out. After all the money you make on the stock is not made when you get in to the market. The money you make on the stock market is made when you get out of the market that is when you sell your stocks. Hopefully you will sell your stocks for a profit and that leaves you with a profit.

So how to get out, while staying on top? Well you need to work with your own stops and limits. What the heck?

· You need work with stops and limits, which means that you have a set of stop points and limits. So before you start you need to know where and when you are going to stop.

· It’s best to set your stops and limits early on, because once your emotions get involved. So for instance if you own a thousand shares in a company that is currently at $2.5 per share. You get excited because the price is steadily rising by a few cents every day. Something tells you to sell when they get to $3. Once it gets to $2.9 you decide to wait it out. Sure enough the stock rises to $3.50 over the next while and you decide to keep waiting it out. This is where it gets tricky, because as we all know what goes up must go down. So waiting it out can end up costing 50 cents a share when it drops and imagine the profit you would have made on your original buy price!

· Never expect to make a bundle in a week. You will have good weeks and of course you will have bad weeks. If you implement a range of stops and limits those bad weeks a little easier, or at least not completely wiped out.

· Never partake in revenge trading. Revenge trading means that once you lose money you start investing to get your money back. But this rarely works because if the market has just taken a dip it’s not a great time to get a whole range of new stocks. Wait till things have calmed down a bit.

· Most brokerage firms have an automated stop system that will immediately sell or put your stocks out there the minute they reach your stop point. This means that you won’t have the chance to renege on your stop point.

· Always sell and buy when you feel comfortable, never put yourself under the pressure of too many tips and trade gossip.

· You need to make sure that you never spend more in the stock market than you can live without. If you do take a dive you will find it very hard to recover if you have nothing.

· Periodically speak with an advisor and look over your portfolio. Don’t keep stocks that aren’t or do not look like they will growth and improve.

Title: What Forex And Share Investors Can Learn From The Stock Market Crash Of 1929

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1114

Summary:
It is only fair to emphasize that on the worst day the Stock Exchange ever saw, it was still just a market place, an arena where buyer and seller could transact their business.

The brokerage community, composed as it was of professionals, might have been expected to cast a sterner, more skeptical eye on the weakening economic conditions so falsely reflected in the market’s soaring prices, but there were few enough, in truth, who smelled danger in the spring air of 1929. Eu…

Keywords:
forex,forex software,forex trading software,forex tips,forex broker,forex pips,investing,shares

Article Body:
It is only fair to emphasize that on the worst day the Stock Exchange ever saw, it was still just a market place, an arena where buyer and seller could transact their business.

The brokerage community, composed as it was of professionals, might have been expected to cast a sterner, more skeptical eye on the weakening economic conditions so falsely reflected in the market’s soaring prices, but there were few enough, in truth, who smelled danger in the spring air of 1929. Euphoria was endemic. The Exchange was no giddier than its customers.

It is worth recalling briefly some of the events of those turbulent days, for in violent and exaggerated form the Crash spelled out the consequences of ignoring the basic principles of sensible investment. This is not to say that only foolish people lost money in 1929. Or even that wise ones could have read all the signs correctly at a time when the mirage of endless prosperity had pixilated much of the nation. Nor should that long-ago nightmare stand as a warning against investment today.

But in its stark outlines can be read many of the hard lessons every investor should know by heart.
The Crash, as every economist and social historian who sifted the ashes was quick to tell us, was a classic case of the wish transcending reality. First, of course, came the Boom. After a few unsettled years following World War I, the nation had straightened out economically and entered a period of joyful prosperity.

The automobile industry, producer of the new era’s most glittering symbol, was thriving. This was good news for the vast network of sub-contractors and suppliers of rubber, glass, and steel, of batteries, spark plugs, brake linings, and gasoline. Construction of office buildings, homes, and highways was increasing, and this fattened the producers of lumber, cement, electrical fixtures, and home appliances. Everywhere more power was needed.

The icebox was giving way to the electric refrigerator, the washtub to the washing machine. And more and more homes had backyard aerials enabling them to tune in on the wonderful world of radio. The utilities grew, merged, pyramided into enormous holding companies. The movies were springing into full bloom. Everywhere there was money and progress.

The stock market responded vigorously.

Beginning in 1924, prices moved steadily upward. Each year was better than the last. An impressive array of important people was being quoted to the effect that it now seemed clear the American people had found the secret of capitalistic perpetual motion. The words varied but the message was the same: a wise Providence had seen fit to endow us bountifully with this world’s goods. All that was required to achieve an endless prosperity was to have faith in America and keep moving. We were on the glory road.

Looking back, considering the bankers, tycoons, government executives, and assorted wizards who spoke—and the rest of us who listened, eager to believe—it all seems preposterous, vainglorious and naive. But in the Twenties it was hard to be pessimistic, hard even to be realistic. For America was indeed growing rich, and the end appeared to be never.

Actually, as we now know, the signs and portents of trouble ahead showed themselves early and were there for all to see. In 1927 it was well-known that speculation in securities was increasing. Loans to brokers and dealers inched upward,reaching a total of $3.7 billion, a sure indication that much—perhaps too much—trading was being conducted on margin.

Margin buying was then—and still is—common practice. The customer pays only part of the purchase price of his securities and borrows the balance from his broker, using the stock he buys as collateral for the loan. In a rising market, a buyer might put up $2,500 to buy 100 shares at 50, wait for a ten-point profit, sell, pay off his loan, and be $1,000 ahead—twice the profit he would have made buying outright only the 50 shares his original $2,500 would command. Trouble looms, however, if the stock should drop to the point where its value threatens to be insufficient to cover the loan.

Then the broker calls for more “margin”—funds to reduce the loan to a level equivalent to the new, lower value of the stock or, if the customer is unable to meet the call, sells him out.

When does the total of brokers’ loans—money loaned to them to loan to their customers—get too high? The Twenties did not know, but they were not frightened. President Coolidge did not think them too high. Treasury Secretary Mellon didn’t, either. And as long as the market soared upward, as though inflated with helium, they were right.

Apparently few paused to ponder the consequences of a general market drop and what it might do to the shoestring speculators.

People’s eyes were indeed lifted to the stars, for little attention was paid to events underfoot. By early 1928, business was exhibiting symptoms of distress. Overproduction and overexpansion were accompanied by serious unemployment. And the market reacted. Time and again, there were short but severe jolts indicating that all was not well, that the great bull market was not impervious, that what went up had a very good chance of coming down.

Still, it was also true that the market rebounded with astonishing vigor after these shocks. Following the election of President Hoover, the upward march resumed. The keener analysts were now stating firmly and unequivocally that the market level was dangerously high, but their warnings were lost in the anvil chorus of optimism that still pervaded Wall Street and its swelling army of customers. Playing the market was now everyone’s game.

The end of 1928 and the early months of 1929 brought further tremors, but once more the market rallied, and by midsummer stocks had climbed to undreamed-of peaks, and fears receded.
Brokers’ loans were over the $6 billion mark and, according to one post-mortem analysis, some 300 million shares of stock probably were being held on margin.

But why worry? Values were so astronomical, as September came, that there seemed no reason they should not go higher. Faulty logic? Of course. Yet who can blame the man who bought Montgomery Ward at 150 and saw it go to 450 in a year and a half for feeling that another 50 points was in prospect?

It is unfortunate that prices did not keep rising.
Knowing when to sell is always difficult and in the months running up to the crash it would have been very difficult to tell that a crash was just around the corner.

Now we have experience of the past we should be more cautious.
Good software programmes can give us some clues for the stock market and Forex in particular.

Title: Stocks Vs Bonds: Should You Put Your Money Into Stocks Or Bonds?

Word Count:
400

Summary:
So what is the difference between stocks vs. bonds? People today are interested to know what the better method of investing is. Trust be told, many believe that bonds are better because they are a safer investment, as you are virtually assured of achieving a positive return on your investment.

Here is a brief explanation of a bond. The company you hold a bond in has issued you a bond in exchange for your money over a certain time. When the time is up, they will pay the loa…

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stocks vs bonds

Article Body:
So what is the difference between stocks vs. bonds? People today are interested to know what the better method of investing is. Trust be told, many believe that bonds are better because they are a safer investment, as you are virtually assured of achieving a positive return on your investment.

Here is a brief explanation of a bond. The company you hold a bond in has issued you a bond in exchange for your money over a certain time. When the time is up, they will pay the loan back to you with interest. Therefore, as long as the company is financially stable, you can be almost certainly to make that money back.

A stock, on the other hand, is not guaranteed and fluctuates all the time. Therefore, most people believe (in some cases rightfully so) that a bond is a better investment because they are less volatile.

However, here’s something very few investors are aware of: when done right, stock investing can actually be just as guaranteed of giving you a positive return on your investment as a bond, and maybe even more so.

You see, when you focus your investing on companies that have sound financially numbers and good prospects for the future, you can be virtually guaranteed of making money. However, when, like most investors, you try to spread your investments around and include companies on shaky financial ground, you are just asking for trouble.

The reason that so many investors lose money is that they invest in companies without looking at their financial statements. The only reason they invest at all is they think the stock price will be going up short term. Therefore, the first sign up trouble, they sell out.

On the other hand, however, when you focus on sound, stable companies, you are not only assured of making a positive return of investment, but you can make a lot more money than you would with a bond. Warren Buffet is famous for achieving a 15-20% growth rate on his portfolio nearly every single year. This wouldn’t be possible without his strategy to focus on companies he can be assured of will turn a profit.

Therefore, don’t be fooled into only focusing on bonds because they are safer. When you open your eyes, you will actually realize that there are many stocks you can invest in assured of generating you a profit.