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I’m a 20 year old college student who has saved up $8,000 Its sitting in stocks right now is this a good place

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I’m a 20 year old college student who has saved up $8,000 Its sitting in stocks right now is this a good place

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  1. It certainly depends on what stocks. Also, realize that the market is in a downtrend, all the major indices are trading below their 200 day moving average, and thats a sign of weakness. When that happens, 3 out of 4 stocks follow the market trend, so regardless of what you are invested in, you are likely to be losing money in the short term.

    Suggestion: Sell what you have unless you know the companies well and have a strong conviction about them. Wait for the market to recover above their 200 day MA, at least, and find leaders in the market that can propel your portfolio higher. If you have trouble doing this on your own, consider a stock picking service with credible track record.

    I would avoid mutual funds, although some consider them less risky, its actual more risky to take a buy and hold approach, and very few mutual funds actually beat the market consistently year after year. At age 20, you have a great advantage to educate yourself and self manage your own assets.


  2. It depends what stocks you are investing in - if they're recently doing well keep it in for longer.

    If you're not sure, I say you should withdrawal/take out some money and save it in a bank account and take a risk with the rest of the money.

  3. depends on what stocks - you should know if yours are up or down compared to what you bought them for - individual stocks are always riskier than mutual funds that buy many different stocks to less the risk

  4. How soon will you need the money?  If you can let it stay invested long term, you're OK.  If you're going to need it soon, you might want to put it in something safe like a money market fund.

  5. NO

    To my mind the best way to invest money is to invest in someone's business. It's safer and more profitable. I have invested in my friend's small business and now I am getting guaranteed 40% annual interest.

    I wish you success!

  6. Certainly depends on WHICH stocks...if you don't want to watch and trade weekly or monthly, you're probably better off getting into a couple of solid mutual funds, maybe with an " international" scope...and then even diversify a little more with a few ETFs in smaller amounts...agriculture: DBA or MOO...materials: XME...Energy: XLE... alternative energy :PBW, GEX... even solar: TAN.

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