Here’s a popular belief about the stock market: that it’s too risky and you should just hold on until the bubble bursts. That’s an easy way to feel safe, but isn’t it the best way for you to end up broke if the market crashes? That certainly may work if you’re lucky. But what if you aren’t so lucky? Or what if you make bad decisions along the way?
Here’s my question: What would happen to the world if everyone was guaranteed a $10,000 inheritance every year. That’s all you need to retire on. Or what if your home and car were both paid for in full? That would give you enough money to take a two-week vacation every year. Or what if you won the lottery outright, with nothing left on the table except the bills that go with it?
Of course, none of this is possible, but it’s certainly worth thinking about as you decide how to approach investing. The best advice I can give to young people is this: Follow your passion. If investing is something you love to do, then invest in stocks and bonds that will give you a long-term return. If banking is your passion, then invest in bank stocks and bonds and earn a short-term return.
In the late twentieth century, a few young people decided that they were going to change the world. They gathered together and formed the Round Table, an association dedicated to helping young investors make money. Over the years, the group improved worldwide access to information. Today, it’s easy to become a member of the Round Table, and you can log on at their website to get the latest stock market updates and trade tips. And today, many young investors make money by trading in the stock market. They’re not mere day traders, although the term may still apply.
For the best stocks to buy for the next ten years or so, the best way to approach it is to look back over the previous five. Each investor should know the total number of shares that he or she has sold and the value of those shares. That should tell the investor what the value of his or her portfolio should be at any point in the next five years or so.
After looking at the previous five years’ worth of results, then add five more years onto the calendar, and you’ll have your best estimate of what the stock market should be like in the next ten years. Then calculate how much you should have invested, and what your annual return should be. You should use a broker to help you perform this calculation. Not only does a broker know the market deeply, he or she can also help you find the best stocks to buy, since they are skilled at finding the top-quality investments.
Once you’ve figured out how much you should be investing, figure out how much you would like to earn on a yearly basis. If you want to earn five million dollars over the next ten years, go for it. That means you need to invest five million dollars. If you’re trying to earn one million dollars over the next ten years, keep it realistic, and don’t get too greedy.
Finally, figure out what your investment goals are. Are you simply trying to turn a profit? Or do you want to hit the million-dollar mark? If you want to hit the million-dollar mark, then you might want to focus on penny stock trading hours, since that means you will have more opportunities to make profits. If you just want to make a return on your investment, then stock ticker trading hours are not worth your time.