I like to think myself an entrepreneur. Why? Because I sell on eBay. I also like to think of myself as a stock market guru of some sort (although I've never actually done the real stock market). I study the stock market and the economy a decent amount of my free time. When you watch those business news channels and all you here is this debate about whether or not our country (the USA) is, or is not in a recession. Dictionary.com defines recession as a period of economic contraction. Here is my question to all those "wise men" as The Motley Fool Investment Guide would call them, how do you even debate on that. With that definition we've been in a recession for quite a while now. Now if you are worried when people say we may enter a recession, there is nothing to be worried about. Now some people may argue that recessions can lead to worse things. The stock market for instance can crash or at least get really low. Now if your like me and have never invested in the real stock market before, then you are in luck. Because if you have been paying attention, a low stock market usually means that it will rise again. It's the basic principle of the stock market, no I'm not talking about the three step principle of 'Research, Research, Research'. I'm talking about the principle that most investors overlook (given the exception of Warren Buffet and a few other multi-billionaires). Buy low sell high! So if you had a million dollars invested in let's say... Etrade finacial. Then your pretty much screwed, because last time I checked Etrade was roughly 2.70 per share and it just keeps dropping. If your like me and have never invested in the stock market before, then I would expect a pretty nice cash flow. Now this isn't to say that you should just go out and buy whatever stock comes your way. The three research rule still applies. Just do as follows. Find a company you are pretty interested in, look it up and see if it has any 'deals' that could go bad, and if not then invest and hope your stock go's up. This is not your one chance to being rich. You still have to use your common sense. If you are taking all this to heart, DON'T. Though I do sound intriguing, you have to learn the basics before you just jump in. Maybe take some classes. I am just giving you my view on the subject. As I said before, I've never invested in the real stock market before.
Sunday, April 13, 2008
Subscribe to:
Post Comments (Atom)
0 comments:
Post a Comment