Recently a fellow blogger of mine has been trying to convince me of entering the world of stocks. It has always been a fantasy in the back of my head, but due to recent circumstances (let's just say....mis-handling of money), I have been quite hesitant. On one hand, I could make a wrong move, become greedy or get unlucky and there goes a lump sum of money. On the other hand, if I do my research (and I do happen to read many articles online) and with a little bit of luck, I can make some easy(?) money. In fact, my money will be doing my work for me...right? Actually, I've tried that before...hah! Now, seriously, I have been checking out the
Investopedia Simulator (which I highly recommend for anyone thinking about getting into stocks). It allows you to play around with $100,000 in whatever stocks you please. It has plenty of research tools and guides as to how the world of investments (which also involves mutual funds and bonds) really works. You can waste hours of your time reading all the online documentation.
So, is playing the stock market much like playing a game of poker? In some sense, I think it is. No matter how much research you do (or confidence you have in a hand), there is always a risk involved. Am I willing to constantly stress myself, wondering why my stock keeps going up and down, and hoping to at least make my commission back? Probably. Why? Because I believe in self-masochism. Also, I like to take the road less-travelled...or is it the rockier road? I don't know, whatever it is...I'm giving it serious thought. Hopefully my stock won't look like this within a few weeks of buying.
Well, I have invested $750 (not real money) in IBM, and in about a week I've made $35 (although there was a $20 commission charge). That was investing without really doing any research. So, I am about to begin a journey through the myriads of online articles and reports in hopes of finding the diamond in the rough. Economist.com here I come! Feel free to leave your comments, insults or discouraging advice.