Is Investing In The Stock Market Risky?

Question

I know that investing in stocks is risky, but why? I know next to nothing about business, the economy, etc. But it seems to me that most businesses grow over time, which means most investments would provide good returns.

Answer 1

Investing in the stock market is not risky if you know what you are doing.  If you don't take the time to learn it can be very risky.

Answer 2

Many businesses do grow over time.  But some go bankrupt.  And sometimes stocks are down for an extended period of time.  Therefore the market is risky.  To hedge against this risk you need a diversified portfolio of stocks in case one or a few go bankrupt.  And you need a long time horizon in case of an extended downturn in the overall market and the possiblity that you would need the money during that downturn.

Answer 3

Start listening to 3 hours of Financial Sense Broadcasting every weekend before investing a dime in the stock market.

They will keep you miles ahead of the typical investor.

http://www.FinancialSense.com

Answer 4

Online stock market trading has made things quite easier and anyone who wants to get maximum benefit in less time can join. To become a successful investor in the stock market, it is inevitable to know the basic marketing strategies and the subtle risks involved with the trading. Once you become familiar with these strategies, you can get rid of risks, if any.

Learn different stock trading skills and keep you updated with latest market news and information. Buy shares from leading companies to avoid any risk of losing money. Though brokers also keep you updated about different shares that become available, but it is also advisable to keep an eye by your own.

Money management is also an art and it is necessary to invest your funds in a place where you have minimum risks and maximum return. Invest in stocks and gain maximum profit without any hassle. Choose the best online brokerage company, open an account and start trading now.

You may find this article very helpful:

Risk Management in Stock Trading

http://ezinearticles.com/?Risk-Managemen...

Answer 5

Yes, unless you need the money between now and the time they grow, or that company does not do well.  Then the stock market is very risky.  If you invest and let it go for years and years,  but that is investing.

It depends what you mean by good returns?  Are you l;looking for 10% 20%?  Sometimes other instruments, such as discounted bonds can give well over 10% after tax without any of the volatile equity risk.  

Sometimes less volatility is easier to handle then the ups and downs of the market.