IS INVESTING GAMBLING (part 2)

Whats great about safe investing:

1. Ownership- What a lot of people fail to recognize is that when you buy stocks you are part owner of that company. When you invest your money in company stock, that company will send you company updates, executive decisions, and some will allow you to vote on certain decisions and hires.

2. Its safe because you're thinking LONG TERM- This should actually be number one but more people would probably be interested in the ownership fact most so this makes number two, but it is most important for beginners. You aren't investing for a day, a week, or a month. You want to invest for years, thinking long term instead of short. You are about to be part owner of a company, why jump ship early in something you believe in? You must have faith in your company.

A great way to do this is to think about the top 10 companies that are the most influential in your life. For starters, these should be the the companies that you should invest in because you only want to invest in things you know best. So let's say you spend a majority of your time camped on your lap top watching 90s music videos on YouTube. The questions you ask yourself from this point are:

• Do i think YouTube stocks will be worth more 2 to 5 years from now?
• Is YouTube in a market where it has room to grow?
• If I see YouTube growing, when do I think it may begin to stop producing significant gains? 

If you've answered yes to all of those questions then you've already found yourself a safe investment.

3. Watch the market is what you do anyway- If you look at a graph of the market you will notice sharp drops or peaks during major world events. Please pay attention to the market. Notice the trend shifts and watch the news. People who don't understand the market don't understand that almost everything can effect the market. From Kim Kardashian saying that blue jeans are in, to a oil war in the Middle East. Stay connected with whats going on. Staying in tuned with whats going on in the world is fun and helps for smart investing. Pick up a paper or watch the news. Events could also be a great signifier to jump ship.


4. Investor sites give you more interest for using their services anyway- Sites are constantly fighting for you to have your money in their sites so they offer a better return then banks do. And clearly we've all seen how faithful the banks have been with our money these days. Great sites to look into are etrade and scottrade. Of course it's pretty expensive to open an account, around $300-$400 but that money is yours to trade and buy stock. You can ask for it back whenever you want.