Is there a way for the average investor to make $ in the stock market?

Question

I just started investing in stocks this year and am finding the maze of details and information about investing methods overwhelming. I'm also sensing that those who make careers of this are in a much better position to know how to trade, whether using options, calls, puts, etc. I signed up for a number of newsletters from professionals who then try to sell me their services, claiming they have inside information that can make a lot of money. They charge anywhere from $100 to $6,000. for their "inside information", and while I'm sure they know much more than I do I'm wondering what the rewards vs. risk is if I decide to use their recommendations.

Answer 1

There's definitely a learning curve with the stock market, so start out with conservative investments and small positions. Read, study, and do your research. It seems overwhelming at first, but after a while it becomes easier, even if the direction of the market remains difficult to predict.

As to stock investment letters, I've used a few. Most of them are not worth the money they charge. But again, it's part of the learning experience, reading what someone else thinks. The only investment letter I get now is The Motley Fool's Hidden Gems letter for small cap stocks. The Motley Fool discussion boards are also a great, and free, source of information, along with the Motley fools CAPS ratings and recommends.

Answer 2

It takes time to learn this. There is indeed much info out there but a couple of basic books and some experience will prob go a long ways to getting you educated. Learn the basics of fundamental and technical investing. Read about the many relationships that exist in the markets and see how they look like on charts. Then papertrade with fake money until you gain confidence. Avoid newsletters, if these guys were so good at predicting stock moves, they would be busy making money not selling picks for a $100.