But make no mistake about unless you are prepared to take some risk you will never get the kind of gains I achieve year after year trading momentum, growth stocks.
How old you are should play an important factor in how you invest. If you are young, investing in blue chip stocks can really benefit you in the long run. Blue chip stocks belong to well known, massive companies that always tend to grow favorably. If you are older, bonds are a better option to put your money into.
Before you invest any money in the stock market, you will need to dedicate some time for educating yourself on the different aspects of the stock business. People think making money trading is easy. Why? It’s one the most difficult careers one can choose. Why people think they can buy a $200 piece of software and outperform the major investment firms is beyond me. You will gain much needed experience and learn many tips and tricks for picking the best investment stocks. It is a good idea to spread some money around in many different stocks than invest solely on one company. If you invest all of your life savings into a shoe company and then it comes out they are making their shoes out of endangered pygmy baboon hides, you are in a world of hurt.
Investing in bonds is much easier than stocks for many people. There are many different government bonds and corporate bonds to choose from but a broker or your banker can give you lists and advice on them all.