Monday, May 21, 2012
My Rant of The Day: INVESTING
When FB had their IPO...I had lots of people asking me if I was going to invest....and I thought long and hard about it but decided they were way overpriced...I mean WAY overpriced. Had they opened at $8/share, I would've dove in for the long term.... but they were 5x's that amount..no thanks. With millions of people on FB....they have definite potential... but for now, it's all air right now.
So here's the way I have always looked at investing; Investing in the stock market is a legal form of gambling....if you're going to put money into it, don't put it in unless you have it (don't borrow from someone) and be prepared to lose it, so it's not going to make you or break you.
Remember the stock market is a roller coaster; It's great when the stocks you buy go up....but they also go down; it's all cyclical. Use your head and do your homework; Just because people hype a stock, doesn't mean that you buy it..that's why they're hyping it..they convince you to buy and then they sell...you've lost and they've made a bloody fortune.
Read...Read...Read....the internet makes it easy now inform yourself, financially. I read everything I could....every publication out there... this was after I asked a relative, who's livelihood is in the NY Financial District, to help me and he refused...I educated myself. Then, and only then should you think of investing.
I, personally, will never use a "financial advisor"...because in the end, if you're up on everything...they don't know anymore than you do...and now you've entrusted someone else with your money. Good luck!
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