how risky is it to invest in stocks?
413697
There are two types of risk to be concerned about when investing.  One is nonsystematic risk or the risk that is specific to an individual security.  The other type is systematic risk or market risk.  This is risk that comes from economic changes that affect the whole market.  Nonsystematic risk can be eliminated by diversification.  It's the market risk that you're left with.  A stock's beta tells you how reactive it is to changes in the market.
858018
I'm a long-term investor and believe in holding stocks... for decades.  If your gut, however, is telling you to take a profit... there's no harm in it.  And if you think some other stocks show more potential, no reason to hold off reinvesting in those.  As for me, I'm keeping my oil stocks... indefinitely.
170590
Stock market!  You can invest in high risk or low risk stocks, it is up to you.  If you decide to do day trading or trade penny stocks, that is where the highest risk lies, but also the best profit can be made!
235702
Yes, it is safe. But don't buy individual stocks because their book may be cooked (not real).\nBuy EEM, it is an exchange traded fund.  Much safer.
1140593
There really is no "safe" place to put the money and get a "big" return.  Generally, the two are on complete opposites of the spectrum.  Be safe=low return, risky=possible high return
216354
If you have to ask that question in this public forum, I doubt that you are positioned to risk your money in any stock today. Stock market prices are driven by Public Perception and not necessarily by the value or the income of the company. Take a look at Exxon Mobil (XOM) for the last 6 months while oil and gasoline prices were going up. XOM is down 5%, while the Dow Jones Industrial is up 7.5%. Investors who put down their money without doing their homework are easily fleeced by brokers, some who hang around chat rooms hoping to get young investors into their areas of service. Remember one thing if nothing else: stock trading is a net zero business; it produces one loser for each winner, and the loser is usually the little guy who buys (through a broker) what the big guy doesn't want. Study how the market works, find newsletters that have a good history of recommending stocks, invest your money in a step after step manner, maybe 20% each month for 5 months, and be ready to sell even if at a small loss if the value of your selected stock decreases by more than 10-20%. You will have to set your own loss limits. Good luck, but don't rush.
225670
Hi,\nNever start with this low an amount. The fees would kill any profit you would make.\n\nMy advice is that a person should not invest less than $1000 in a stock. \n\nJust do the math : If you pay $8 per trade. Then you pay $8 to buy and $8 to sell. So you are spending $16 anyway. \n\nLet us say you invest $500 in HomeDepot and it appreciates 10% in 1 year. Then you make $50 - $16 = $34. Which is just 6.8%.\n\nInstead if you invest $1000. Then you make $100 - $16 = $84. Which is  8.4%.\n\nSo it is obvious that higher is your investment , lower is your fees. Based on my experience, $1,000 is a decent amount to start with on a stock.\n\nHave fun investing.\n\nDan.
736703
Are you after short term gains, safe investments for the long term\n, mixed risk investments?\n\nWhat is your risk/reward strategy?\nTimescales?\nCan you afford to lose it ALL if the shares crash?\n\nUntil you know these answers, we cannot REALLY help you - other than give suggestions which SOUND good but might cause you all sorts of problems if they were not the right answers for you.\n\nIf you do not understand the market at all, then learning a little about it would be a GREAT idea. Also, if you expect people to give you investment advice and ideas, you might take the trouble to write a proper sentence WITH reasonable spelling - otherwise most folks will take you as a "txt-talking kid"
473887
You have a chance of lowering your risk by not putting all of your eggs in one basket so to speak.\n\nIf you know what you're doing and you diversify anyway, you may water down your returns.  Warren Buffett is one of the more famous investors who doesn't believe in diversification because he thinks he knows what he's doing, and so far it's worked out for him.
84731
Before you trade stock options you need to be a proven money maker in the stock market. Unless you can anticipate stock movements, you have no chance trading stock options.\n\nThe way I trade stocks, I cut my losses short at about 7% Several years ago I decided to take that 7% and put it in call options 3 to 6 months out instead of 100% in shares. \n\nYour risk is clearly defined, and you are offered some protection from events such as market closures or gap downs.\n\nI would never risk more than 1% of my entire portfolio on an option position.\n\nSpreads, straddles, and the ability to hedge are other benefits of options. Only trade stock options if you are an accomplished stock trader. You could lose alot of money.\n\nWriting options is statistically a losing proposition in the long run. The risk / reward is clearly unfavorable.
715858
You don't say how old you are, what kind of resourses you have or your knowledge of finance in general, I.E. do you know how the market works, listed vs over the counter, options, etc.?  Before you invest a dime remember the cardinal rule of investing: the public finds out after the money's been made.  In other words, if a stock is at a high it's not the time to get in.  Also, the corolary: if it's too good to be true, it's too good to be true.  Finaly, don't invest money that you can't afford to lose, especially if you're speculating (which it sounds like you are).  Go to Morningstar.com and sign up.  It will be the best money you spend for ideas, research and analysis.  Read the Wall Street Journal and look for companies with a future.  You might want to put money in an index such as the S&P 500 especially if you think the market will keep going up (and it won't - it will correct).  Bottom line is that there is no easy answer to your question.  \n\nAvoid the following:\n\nemails with stock tips\nfax messages with stock tips\nany stock selling for under $5.00 a share (unless you're willing to lose all you invest in it\npenny stock\noptions\ncommodities\nfriends who say they "know a guy who knows a guy who said..."\n\nDo the following:\n\nUse a reputable broker either bricks and mortar (Merrill Lynch, Lehman Bros, etc, or a reputable on line broker like E*Trade, Scwabb, etc.\nPut half your money in a good mutual funds of either high or mid-cap companies - you'll have gains while you experiment\nPick a point at which you want to get out on the up side (on Wall Street the pigs get slaughtered) and stick to it\nIf a stock is falling, pick a point at which you want to cut your loss.  If it;s a good company you can always buy in at what you think the low is.\n\nGood luck.  If you find the secret let me know.  I stick to known companies with solid balance sheets and a track record.  Even so I've lost (Worldcom, GM and a few others).
259852
Take investment risks. Especially if you are young.
930567
Stocks, after their IPO, can go up or down.  \n\nBe very careful. If you're putting money into something that you know nothing about, know little about the mechanics, don't know what will make the stock go up or down and/or can't afford to lose this money - then this is gambling.\n\nMy recommendation is to save your money, invest in prudent investments for your situation.  This doesn't necessarily mean that you can't take on risk for high returns - it just means that you need to be careful and should probably do more homework before blindly throwing your money around.  You work hard for your money, don't neglect it. Treat it with respect and it will treat you nicely.
198893
Read the book "The Intelligent Investor".  Summary is to buy stock and bond index funds with low rates.  The % of each depends on how risky the market is and your personal comfort with risk.
500949
I would suggest you open an account with an online broker like Ameritrade or Scottrade.  I suggest you go to your local library and see if they have the Value Line Investment Survey.  If they do, an new issue comes out weekly.  Value Line rates stocks based on timeliness (what are they expected to do over the next year), safety (the level of risk for the stock) and technical.  I use it to do my own research on stocks.  \n\nI found that I had to be an investor rather than a trader.  The difference to me is that I don't have the nerve to day trade.   By investing I don't get so caught up in the day to day of the market and I focus on the companies that I have stock in or am thinking about buying.\n\nIt works for me
801461
BUY SOME OF THE TOP PERFORMING FUNDS. THEY ARE LESS RISKY THAN STOCKS.
762354
You can only invest in stocks that are of publicly traded companies.  Each of the above are private entities (private companies).