Start Investing

The stock market is nothing to be afraid of, but from the impression I get from my friends and colleagues, the stock market is to be feared or avoided. Most people are just misinformed. Most people make money trading stocks either on a short or long term basis. I myself have made close to $3,000 on E*Trade. Sure that might not sound like a lot of money, but I have only been trading for two and a half years. I also go to school studying finance, so I don't have all the time in the world nor the money to invest at a moments notice. But for me, $3,000 is a lot. I do not take that money out to use as I want either. Any gains I may have I re-invest in the next trade. This is known as compounding. Most of us know this term from interest payments we make on credit cards or loans. Compounding adds up in the long run. But my advice would be to start investing sooner than later as your situation allows. Don't make foolish decisions and trade on a whim or a tip you get from a friend or stranger. Do some research in the company first. Look at the industry and see if they are one of the top players. Look at the yearly and quarterly reports and see if their profit margins stay pretty steady or increase from time to time. Also make sure that their business is looking toward the future. If you have any questions, just ask. But like I said, don't be foolish, but also don't be too cautious. This is a game of risk, after all.