The Stock Market And You

By Michael Sandberg 

The stock market isn't for everyone. It's a scary place, and you risk losing a lot of cash before you ever turn a profit. That said, there are safe investments, even for beginners. Let's talk about a few.

Beginners

If you are a beginner, I highly recommend mutual funds, or safe and slow long-term investments. Mutual funds are so heavily diversified that the risk in investing in these types of markets are extremely limited. At worst, you generally risk mediocre gains.

You can also look into well-known and slow performing companies for long-term growth. Pepsi, Coca-Cola, WalMart, and many other large companies are relatively safe investments. They don't often give you high returns, but they certainly aren't very risky either. Investing in these companies for periods of 10-30 years can give you a very high return, and it's much higher than any savings account, so give it a try.

Intermediate

The intermediate user should start with the first two investments, and then add-on to them as they go. Quick ways for an intermediate trader to make money are in the Forex market, and several commodities markets. Do your research, and don't fall prety to foolish investments.

Advanced

Only the advanced should attempt these methods, but they can be quite profitable. For the advanced user, they should take advantage of the first two methods, and then add on a few more advanced moves. Short selling, swing trading, momentum trading, and day trading are the most popular amongst advanced investors.

These are the most dangerous of all investments, so don't attempt them without doing your dilligence.