| Actually if you think about it, the best | | | | is $1 million dollars or more but terrible to think |
| investments for new investors is in the capital | | | | that a new investor may spend their $1000 |
| markets. This type of institutional investment is | | | | dollars and get really not too much after 10 or |
| typically quite safe if you stay away from the | | | | even 20 years of patient waiting. |
| speculative penny stocks. By avoiding those | | | | Many new investors therefore get a little more |
| volatile penny stocks and sticking to your Googles | | | | aggressive in their investment activity and I don't |
| and Walmarts and company's of this caliber your | | | | think that is necessarily a bad idea. It is quite true |
| money is quite safe over the long term despite | | | | that investment with higher risk typically have a |
| the historical ups and downs of the stock market. | | | | higher return too, but the risk is significant so |
| Unfortunately for new investors, the stock | | | | losing ALL ones investment is sometimes a |
| market will appreciate by around 7% per year. | | | | possibility. There are ways to hedge your high risk |
| That is nothing to write home about if all you | | | | investments so the risk is significantly reduced |
| have is two solitary shares of Google which at | | | | and that is the way most new investors should |
| this time are worth around $800 The return in | | | | travel because sitting it in the stock market for |
| say ten years will be quite small even at 7% | | | | 20 years you may as well just leave it in the |
| This sort of institutional investing is perfect for | | | | bank. |
| individuals with deep pockets whose bank balance | | | | |