How to Start Investing or Just Pretend
- 1). Points
- Historically, the S&P 500 index had returned an average of 10% since 1957.
- If you started investing in 1957 and added $800 dollars every year into S&P then you would have $1,024,239 dollars 50 years later!
- If you had only squirrel away $800 every year for 50 years WITHOUT investing it then you would only have $40,000.
- Investing in this case nets you over $900,00 dollars. Therefore, investing is profitable. - 2). Beginners starting out should only take a light poke at the stock market. Don't sell your home and invest all your money in stock call options if you think the underlying security is going to go up. Rather start out small with no more than you are currently spending for movies, porn, cigars, Starbucks coffee, and other things unnecessary.
- 3). Instead of real money you can also experience taking part of the stock market by using Investopedia's Simulator at simulator.investopedia.com The simulator reflects real stock value changes so it'll be just like as if you were investing though only with fake money. If you purchase STOCK WHTR (WHATEVER) at 15 dollars apiece and the next day you see on your television that STOCK WHTR has went up to $23 due to exceeding earning expectations or whatever reason then the simulator will recognize the stock value change and accordingly accredit your portfolio with the changes. There are other simulators out there that you can find doing a simple Google search.
- 4). If you're serious about investing then I would highly recommend you to check out these books from your local library.
How to Make Money in Stocks: A Winning System in Good Times and Bad by William O'Neil
One Up On Wall Street: How To Use What You Already Know To Make Money In The Market by Peter Lynch
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel by Benjamin Graham
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