what are the risks of investings in stocks?
By eabaterina
@eabaterina (501)
Philippines
6 responses
@jakeb1 (562)
• United States
24 Feb 09
There is a big difference between investing in the stock market and investing in, say for instance, a Mutual Bond. Stock market is High Risk, High Reward, while a Mutual Bond is No Risk, Very Small Reward. If you do invest in the stock market, I would invest it in a reliable and well known stock that has good dividends and has almost no chance of going bankrupt. Also, this might not be the best time to invest in the stock market, no matter where you live.
2 people like this
@eabaterina (501)
• Philippines
24 Feb 09
but will it not be good to buy now since the prices are low? and you can wait for the price to increase in years to come? if i feel that the company is still stable and will not close. is there a risk of buying at a high price then the company all of a sudden decided to announce that they will buy all those stocks issued at a lower price?
@skyblue (1299)
• India
24 Feb 09
Always it is a risk to invest in share.If you are a intraday trader, then you may loss all your money.Now market is highly volatile.So, if you want to invest in share market, invest for at least 8-9 years.Your money will be double or triple.
@AnythngArt (3302)
• United States
24 Feb 09
This is the best of times and the worst of times to invest. It's the best because most stocks are at very low asking prices right now and you can pick up some real bargains for the future. Inevitably the stock market will go up, and the name of the game is "buy low and sell high." This is the ideal time to snap up bargain-priced stocks and hang on to them until the stock market rises again. This means that your money is likely to be tied up for at least several years, as economists are predicting that the market is not likely to improve this year or next.
On the down side is that this is also a time of turmoil, and many companies are likely to go out of business. If you are holding stock and the company goes out of business (or is nationalized), then your stocks are worthless. And what you buy can always sink even lower in value too. (Just look at what happened to Enron stock, for example.)
In the end, I would say don't be afraid to buy stock if you can afford to lose the money and if you won't need that money for several years. If you buy several different stocks, chances are, at least some of them will go up in value, and you will make money.
Good luck.
@jjstare (97)
• India
24 Feb 09
Ofcourse stock market is full of risks and there is a chance of loosing all our money. But through proper investment and planning we make a good returns as well. First of all we should not opt stock market for investing, before that you should study and observe it. Then after that you can start investing your small amount of money into that, apart from all of your needs. What you can do is subdivide your investment by 60 percent into safe and security by investing in Fixed or term deposits or patras or bonds, 30 percent into mutual funds and reamining 10 percent into stock markets. It will save and averages you even if the market goes down at the worst situations.
1 person likes this
@iwrite (5034)
• Singapore
24 Feb 09
Well understand this, the greatest risk of investment is yourself. You have understand yourself and your emotions in order to understand how you can trade if you would be able to hold long term or make short trades. Understand your finances. To see if you can afford to hold on the stock.
1 person likes this
@chriswolf (360)
• China
24 Feb 09
The greatest risk is that you lose all your money.
2 people like this