Stocks Archives - Your Personal Finance Site

3 Reasons To Stay Out of the Stock Market

Although I love the stock market and would like everyone to love it too, the stock market is not for everyone. I’ve learned that for some people owning stocks will not bring them happiness. Nor is it always the best financial investment, depending on your personal circumstances.

It’s exciting to see the market climbing up and up. And tempting to be part of the action — and all the oodles of money being made. But when the market starts dropping, not everyone enjoys that part of the roller-coaster ride.

Reasons to stay out of the stock market

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I Don’t Understand Stocks at All!

By Ronnie Ann 2 Comments

If you are thinking that you don’t understand stocks, join the club. Many people, even those who already own stocks, feel that way. And for some, the confusion is enough to keeps them from ever investing.

A friend of mine recently asked me to explain it as if she were in kindergarten. I’m not sure I can do that, but I’ll try to break the concept down into easy to digest financial morsels.

Understanding stocks checklist

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What You Need To Know About Online Stock Tips

By Ronnie Ann Leave a Comment

A friend of mine sent me a link to some online stock tips. Looking to invest in stocks for the first time, she did some googling. And she was excited to show me what she found — suggestions for stocks in a growing industry she was especially interested in.

The stock tip sites that she found did provide a good analysis of the industry growth she could expect. They also explained why a few stocks in particular had the best chance of doing well as time went on. It all looked very sound and reasonable. And exciting to a newbie investor.

After checking out what she found, I saw that they did a solid job of explaining the concepts involved. And the stocks did seem to have good fundamentals that should help them do well. At least, on paper.

So what’s the problem with online stock tips?

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Stock Basics: I Want To Learn To Buy Stocks for Myself

By Ronnie Ann Leave a Comment

A friend of mine said these simple words to me “Where can I learn how to buy stocks?” She’s over 50 and has never bought stocks before. And she thinks it’s finally time to learn what everyone else seems to already know.

Although I have other posts that talk about stocks and investing, I realized I need something even more specific. An easy-to-follow guide making it painless for her to learn to buy stocks.

How to buy stocks

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Stock Market: What Exactly Is It and Who Should Invest?

By Ronnie Ann 1 Comment

Should you invest in the stock market? Unfortunately the answer isn’t a simple “yes” or “no” for several reasons. Not the least of which may be your tolerance of financial risk. [There is a glossary at the end of this article for definitions of italicized terms you don’t know.]

Over the many years that I’ve been investing in the market, the best-known U.S. market indices (Dow, S&P, NASDAQ) have all gone up – eventually. But they are not up all the time. While I’m fine with that, there are many people who are not. They find it hard to watch the dips in stock averages. And the maddening ups and downs. You may be one of those. But that doesn’t mean you should stay away.

Are you too risk averse to invest in the stock market?

Some folks who are risk averse would rather make less money and sleep well at night. I’ve found that this often applies to their careers as well as their investment strategies. And even if you tell them things will be ok as markets plunge crazily downward, they get really nervous.

Thing is, markets will do that. They aren’t CDs or bank savings accounts designed to protect your money (while offering you almost no interest). Should people with low tolerance for risk really put themselves through all the ups and downs of the stock market?

Maybe. Keep reading. I’ll do my best to explain.

First … what exactly is the stock market?

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Stock Basics: How Do You Make Money From Stocks?

By Ronnie Ann Leave a Comment

Seems like such a simple question: “How do I make money from the stock market?” Well, the answer depends on things that are not so simple, including your own personal tolerance for risk.

You can make money from stocks and related market products in a number of ways. But there are also lots of ways to lose money. And I’m going to tell you about all of that. Plus some tips to minimize the downside, assuming that might be your goal.

Basic ways to make money from stocks

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The Day I Bought My First Stock

By Ronnie Ann Leave a Comment

I grew up in a relatively poor family where no one talked about the stock market. And when I went to college, I majored in Theater. So what finally gave this small-town girl the courage for my first time buying stock?

You might be surprised, but it was because the market was sliding ever downward. I watched the gloom & doom reports on the nightly news. But instead of being terrified, something told me that we would survive. And if we did survive, I knew the market would eventually head up again. Which it did.

My first tentative steps toward investing

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Stock Basics: What You Need To Know About Stocks

By Ronnie Ann Leave a Comment

What are stocks? Seems simple enough to answer. First thing you need to know about stocks is that they are investments that you can buy, sell, or hold. And they come in shares. And they let you own a piece of the company that issues them, even if just a tiny piece.

But there’s a good deal more to the story, whether we’re talking about individual stocks or stock funds. And as we you learn more, hopefully you’ll also begin to feel more comfortable with your investment decisions. And you’ll be able to speak more knowingly with your broker or financial advisor!

How a stock is born

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