You can loose money on stocks if you do no take care of your portfolio  and if you do not keep in touch with your broker.

Let me explain in a few words how this thing really goes. You come with a sum of money with the broker and together you decide in what firms you should invest after a close analysis of them all. Please remember that all broker tell you that you must have stocks from more than 5 firms in your portfolio so you can have a good steady interest rate. If you choose only one firm to invest all your money into you must carefully read all about that firm and be sure that this is the right thing to do and that you have selected the best time to do it.

After you invest you must keep in touch with your broker because you are not the only client that he/she has and it means that you must contact them weekly to talk about your portfolio and to talk about the financial news that have appeared in the market.

If the market goes down do no sell your stocks, this is a beginners mistake and this would cost you money. The first thing that you must do when stocks collapse you must see what is the feeling of the market and when it should go up again. This is why the money that you invest into the market must not be some money that you depend on for the next 3-5 years. I am telling you about the maximum period of time that your money can be “trapped” into stocks!

more to come tomorrow…