This website is primarily made for people that have very little, to none experience in stock investing, want to learn how to invest, and reduce the risk in the stock market. Although even experienced investors will be able to find some useful info, Coolinvesting.com is primarily here to help, guide and educate people who want to get into very rewarding world of investing in the stock market, and to learn how to invest, but do not have enough knowledge and experience to do so.
I have been investing in the stock market for over 7 years. Over that period I have learned many things, that taught me how to invest and that helped me make some good returns in the stock market. Also, I have learned that you do not have to know a lot about investing in order to make an informed decision, you just need to know the right things. There are a lot of people out there just like I was, who want to learn how to invest, but are too afraid, and do not know how. Internet is full of websites that can teach you how to invest, but none of those is so simple and user friendly like mine. See, I made this website to give you good financial advice, show you step by step how to get involved in a world of stock investing, and make money in the stock market. I have never found a website that will in a simplest way explain to me how to invest in the stock market, from scratch, and then move on from there. Most of the financial guides are all overabundant with information, and it's very hard to find exactly what you are looking for, and on top of all, none of them is completely free. Well, that's why this completely free and user friendly website exists. I will show you everything you need you need to know before you make your first investment. I will teach you basics of personal finance, offshore, penny stocks, mutual funds and real estate investing, and other most important things that you can invest in.
So join me in my quest for success!
Why invest?
Well, the answer is very simple. Do you want your money to work for you, or you want to work for money all your life!? Keeping money in the bank is almost like keeping money in the safe at home. I really cannot call an annual return of 3% a return, as that will not even surpass
inflation by much. A return of 3% can be made in a day if you invest in stocks. Yes, there will be some risk included, but did anybody ever made any substantial money without taking any risk? Therefore, you will have to get used to it. If you want to make money in the stock market you have to take some risk. There is no risk free investment. The only difference is that some investments involve more risk, and some less. But usually those investments that carry more risk have greater return. It is pretty exponential, the more risk you take the bigger return you can get. But beating Bank's 3% return should not involve too much risk. In fact, it is possible to make 10-15% annual return on your investment with almost no risk involved.
For example, you can invest in so called "blue chip" stocks. These are stocks of big and well established companies. These companies have a good record of producing continuous earnings and paying dividends to shareholders. They are called blue chip because the blue chip is the highest valued chip in Poker. If you diversify and invest in 5-10 different blue chip stocks, (preferably you should diversify over different industries as well) a risk of losing money is extremely slim. For example, there is a big chance that all of these companies will continue to grow in the coming years, as they have been growing for decades. So even if 1 or 2 companies do not do good in the current year, by diversifying, you will be able to make money out of the investment, because the other companies you invested in did well.
However, investing in this many different companies requires a lot of research and money, therefore your best bet would be a mutual fund.
Mutual fund gives the best risk/return ration, and requires the least time on your part. But do not forget that with mutual fund you will generally make up to 15% return annually, if that. Which is still nice if you plan to invest in a long term.
One downside of diversification is that if one company does really good, you will not gain a big return, as you will have 70-90 percent of money invested elsewhere. There is a correlation between the risk and return. If you invest in only one company you will be taking greater risk, but if that company strikes gold, you will as well. So forget about putting your hard earned money in the Bank. If you are willing to take a little bit of risk, reward can be much greater. Get educated and make your money work for you.
Personal Finance
Budgeting Your Personal Finance - Many people go through an entire lifetime constantly worrying about their finances, while others take control of their finances and become financially independent. Maintaining your personal finance can be a maddening process. A simple mistake such as a lost receipt, not remembering a payment, or even a sudden hike in gas prices can have your family eating peanut butter and jelly sandwiches for a week, not to mention causing unnecessary stress.
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