What should I own shares?

First, you must define its objectives by investing in equities. Then decide how much time and effort you're willing to invest in equities.

If you want to beat the market and are new to the game of securities of its work for you. In addition, securities that can be easily. If you want to participate in the stock market and obtain maximum long-term, traditionally offered investors need to own shares in the fund.

When it comes to stocks, there are some things you should know in advance. Few investors, including professional money managers beat the market by a significant margin in a single database. Even professionals, personal analysis of studies from all parts of the data, usually not more than the main indicator.

You must understand that the election is only half the shares in the game. The other half of the time. The population is still at the top of the stack for an indefinite period. All this does not sooner or later. Examples include Polaroid, Xerox, and even Microsoft. For example, Microsoft has a large public investment in 1990, while the population has reached the end of 1999 at about $ 60 per share (adjusted for a stock unit). He then two years to trade $ 20 to $ 30 range, and now sells for $ 20!

If you want stock investments, do not possess, because it is too risky. You have no more than a dozen, if you want to get a full day of work from the management of your portfolio. Collect a few and for them carefully. If the stock of their losses under the influence of a common market, sell and search for a replacement.

An investor can not afford big losses among the population, and large losses can be avoided if you're selling, a sign of weakness.

The population of the most well-known investors who track major market indexes. These are index funds that trade like stocks on major exchanges. For example, the symbol SPY tracks the S & P 500 Index. If the stock goes up to 30%, SPY next Suite. If it falls 20%, it can be assumed SPY fell by almost 20%.

I suggest you invest in stocks for a large percentage of the money they have on the stocks in equity funds that track the stock market as a whole. They are known to work with the law, rather than the load index, mutual funds, which we have done well.

On the stock market with the rest of his money, if you enjoy the game. Remember that if you invest in shares, you must be a maximum of ownership, possession, and when to stop it.

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