This is a super goal.
You can build your own financial wealth if you take a long view to stock ownership.
There is only one drawback and it is not the inherent risk associated with stock investments. It is not the roller coaster ride of the stock price.
The drawback is how you buy and sell the shares.
Who invented this industry. Billions, probably trillions of dollars are given to brokerage houses yearly.
I can only ask how do you get in a game like this.
You start an account at a brokerage house and put a significant cash deposit in your account.
A broker suggests you buy a stock – you pay and he gets a commission.
If the stock goes up, he suggests you sell and take a profit – you get money and he gets a commission. Then he suggests another stock and yes you pay and he gets a commission.
If the stock goes down, he suggests you sell and cut your losses – you get less money and he gets a commission. Then he suggests another stock so that you can recoup your losses and yes you pay and he gets a commission.
Does anyone else think this is the ultimate con game.
Track a stock guru or mutual fund and mirror their activity. Use one of the discount brokers or better yet buy the shares directly from the company treasury.
If you do not want to follow individual stocks, then buy the indexes of the markets – Dow, Nasdaq or S&P. Do not buy for short term.
Buy for long term and use tax shelters as feasible. Be careful of liquidity issues because the withdrawal penalties can be stiff.
I apologize for the rant, hope the advice helps.
