The stock market works pretty much like your regular super market or dry goods store in that you get to pick and choose your stocks and bond purchases based on quality and the best price for the money for your investment. With food stuffs and clothing and household items you don’t always get the perfect item you had hoped for and this is the same with buying stocks and bonds. However, you find in the long haul quality wins out over junk. This is whether online stock market trading or buying school supplies from your local Kroger’s.
Before you invest in the stock market you had best learn a little about it before puttinga down any money. You do this by finding an investor that is both willing to help you get started and one that you can believe in. You are of the independent sort and want to know precisely what is happening to your money so choose an investor that you can trust and one that will guide you toward the best choices. He will not mind letting you in on few of their stock market secrets.
If in truth there are any. It may be their best kept secret is integrity and a willingness to learn their jargon. They too speak a language all their own but when translated is what every twelve year old boy knows: buy a candy bar for twenty-five cents and sell it to your friends for thirty-five. If you have too many on your hands, reduce the price to just thirty cents, or even twenty six cents. (The difference is you have only documents for proof and no melting chocolate to complicate your earning potential.
To get rid of the whole carton, you may have to sell at a lost. Then you will set down and figure out what went wrong. This is pretty much the same as investing in stocks. You wind some, you lose some. When you get practice at the buying and selling game, you will win more than you lose. You will gradually build up your repertoire of trusted stock market tips.
One of these will be about lending and helping out others with your surplus cash. This is called making your money work for you. You will want to spread your money around and buy a bond or two – just for starters. You’ve been successful in your first stock market trading and you have some money you can spare for a year, therefore, you loan some to a friend. You know in order to be a successful investor you must make something on the deal. You buy a twenty-five dollar bond from him in which he is to repay in a year. The catch here is the prearranged return on your investment that makes this a unique way of trading.
You give him the money he needs right now which is $17.00 dollars and when he repays you will be seven dollars richer. You could have loaned him the money and charged him interest, but bonds are less complicated. The only bad thing that can go wrong here is that he will move away and you will not hear from him again. Yet you trust your friend and know that he will repay you no matter where he is. At least you believe that from the outstart. Bonds are popular because all the guess work has been taken out of them. With real life bond trading the length of time is often a lot longer than a year, but for a twelve year old boy who is making his first bond purchase, a year is long enough.