Stock Market Investing

Written by Jessica Duquette
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Hopefully the bad taste left in your mouth from 2000 has worn away and you're ready to jump back into stock market investing. If not, I can't blame you. However, I will outline for you the benefits of stocks and how best to avoid bad situations.

Diversification Is Key to a Successful Portfolio

Stock market investing is a gamble. Anyone who says differently isn't being truthful. While the dotcom era of the stock market seemed infallible, time proved otherwise. If there were any lessons that investors learned, it was asset allocation and diversification.

The stock market, while more risky than other forms of investment, does have the possibility of outrageous payoffs. In fact, many people experienced this during the dotcom era. If cash on hand is plentiful for you, then by all means, invest in some stocks. Otherwise, best sit tight until you can throw your money down on a sure thing.

Value Investing

If you're hung up on the stock market, why not try value investing? This allows more timid investors a shot at big winnings in the stock market, with a lot less risk than wagering money on up and coming companies. Not all stock market investing is accompanied by huge risk factors, you just need solid money management advice to be sure you're selections are the wisest choice for your situation.

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