Monday, August 4, 2008

The best way to learn about investment

learn about investment

I am in a similar situation as yourself. I began reading investment articles and books a couple of months ago. I have learned a couple of things that seem to be particularly important, primarily diversification. I learned a bit about how bonds and stocks work and what to look for. I also have learned a bit about mutual funds. My advice is this. Read about the investments that you wish to work with. Once you have read a little bit, get a little experience by doing some investing. I currently have 3 types of investments. 1) US Savings bonds. They don't pay very well but inflation and taxes seem to be the only way they loose value. 2) Stocks. I really dislike the fees that most brokers charge. I don't have a lot of $$$ to invest so $4-$15 a trade doesn't help much. I found a broker (Zecco) that offers 10 free trades a month. That way I can by 2 shares of Delta Airline stock (currently worth a whopping $5.42/ share) without having a 50% loss just because of the trading fee. I do have to have $2500 in the account to get the free trades. I leave that in a money market investment fund so it gets a little bit better interest.
market investment

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