To Invest or Not to Invest: The Stock Market Samba

Surely, you haven’t pulled completely out of the market. And, yes I just called you Shirley! If you aren’t familiar with that line, it is only one of the most memorable quotes from the 1980 comedy Airplane. In the movie, Ted Striker saves the day and the passengers aboard a commercial flight after crew members get so sick they are unable to fly the plane.

By now you’re probably wondering what in the world does that have to do with investing. It’s simple! Just as Striker steered the plane to safety, so should you when it comes to steering your finances. Just a few months ago, we saw the stock market take one of the biggest nosedives in U.S. history. Now it’s time to figure out if it’s okay to get back onboard for a little stock market samba.

Don’t Knock it ‘til you Try it!

This rule applies to everything you do. If you’ve never invested in the stock market, it’s not as scary a beast as it’s sometimes made out to be. However, if you are not careful, the stock market can either be your best friend or your worst enemy. It’s a big system full of stocks and bonds from a number of companies and the prices are based on supply and demand. There’s the buyer, the seller, and the guy in between who’s often called the stockbroker.

It is the broker’s job to do all the wheeling and dealing, but both the buyer and the seller must agree on a price before any transaction takes place. If you’re the buyer, your goal is to buy at a low price, so that you can sell later when the price goes up. When the price does go up, you can either hold on to it or sell it. That’s when you become a seller. (Told ya this was easier than it looks…)

Taking on the Stock Market

The good news is, you can make money in the stock market. The bad news is, there are no guarantees. That’s why you always want to invest wisely so that you will know what you’re getting yourself into. That’s also where your broker comes into play. Ask question after question after question after question…until you are sure you get it.

In my quest to keep it simple, I’ll bullet point the next steps to take if you decide to take on the stock market.

• Set goals and determine needs – This will help you figure out how much you should invest.
• Determine value of stocks – Don’t just look at the price, look at the company’s worth.
• Diversify – Don’t risk it all in one place. Protect your money and invest in high and low risk stocks!

Hopefully, these little tidbits will help you decide whether to invest or not to invest. Just remember though, the stock market is a long term financial strategy. If you’re looking for a short term fix, then you may want to consider taking out a short term online loan. It’s one of the easiest and convenient ways I know of when it comes to getting ahead. More is surely to come…and yes, I just called you Shirley once again!