Timeline of the far future
Consider three investors, each of whom invests $1,000 a year until age 65. However, one begins at age 25, investing a total of $40,000; one at age 35, investing a total of $30,000; and one at age 45, investing a total of $20,000. Each earns 7 percent per year and, for purposes of this illustration, the effects of taxes and inflation are ignored.
Don't fret. Even though the stock trading industry seems like one big complex concept for you, the truth is, it is simple enough to be understood by an Average Joe. Not everyone would become an expert overnight obviously, but even ordinary people like you can understand the basics of stock trading with the right attitude and frame of mind.
trading stocks ended up being a chore and a bore. And don't get me started on the kind of price drops that made me scared to wake up in the morning. All in all, trading shares of stocks ended up being a real kick to the balls. But all was not lost. By haphazardly trading in another asset class, I managed to come out even. And as it turned out, there was a way to trade financial instruments but at the same time be exceptionally lazy. The trade is in things called options.
Stocks are risky and any stock you buy can go up or down no matter how much it is recommended. Anyone who tells you that investing in stocks is safe is not telling you the truth. If you want safety, you should be investing in bank CD's or government bonds but of course right now they are paying next to nothing in interest. You may get a higher return with stocks but the much higher risk comes with http://news.goldgrey.org/category/gold-futures/ it.
So, begin by determining how much of your savings should remain in your savings account, and how much can be used for stock investments. Unless you have funds from another source, such as an inheritance that you've recently received, this will probably be all that you currently have to invest.
Remember, buying shares is not gambling if you know the rules. Understand your risks, and don't take any you cannot afford to make. Avoid startups for a first investment - save the riskier stocks for when you are more confident.