2008 Woodie Awards
Vote Absentee
Why the time to start saving and investing is now
By Daniel Pannone
Issue date: 11/8/06 Section: Features
The only way to limit risk in the stock market is through diversification. Invest in different sectors. Do not buy all technology stocks or all retail stocks because a bad downturn in that sector can wipe off much of your savings. An easy way to diversify is to buy mutual funds or exchange traded funds that track a wide market index or which invest in many different companies.
Once you are ready to get your feet wet in the stock market, you might want to check out a discount broker. Brokers like E*trade, Charles Schwab and Ameritrade offer low investment minimums, and you can make trades for between $10 and $15. Keep in mind that trades used to cost $50 to several hundred dollars. If you are willing to get your research from outside sources, you may want to check out Scottrade or Tradeking. They offer $7 and $4.95 trades, respectively, but they do not provide the comprehensive research offered by other companies.
If I may leave with a departing message, it is that time is on your side. But start as early as possible. Don't wait until you're 50 years old, because by the time it will be too late, and Uncle Sam will most likely not be there to help you out.
Once you are ready to get your feet wet in the stock market, you might want to check out a discount broker. Brokers like E*trade, Charles Schwab and Ameritrade offer low investment minimums, and you can make trades for between $10 and $15. Keep in mind that trades used to cost $50 to several hundred dollars. If you are willing to get your research from outside sources, you may want to check out Scottrade or Tradeking. They offer $7 and $4.95 trades, respectively, but they do not provide the comprehensive research offered by other companies.
If I may leave with a departing message, it is that time is on your side. But start as early as possible. Don't wait until you're 50 years old, because by the time it will be too late, and Uncle Sam will most likely not be there to help you out.
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