How The Stock Market Works and Why It Beats Housing and Gold All The Time

“How Does the Stock Real Estate Agent Agreement Sample Market Work?”
For those who have not been completely psyched-out by all the news from the various media outlets over the past 2 years during the Great Recession, investing in the good old stock market whether NYSE or NASDAQ is still your best tool to make future money and build up a capital base on which you might actually be able to retire. If you honestly think Social Security or your employer is going to some how handle your retirement, do not bother to read any more of this post!
The reason why the stock market always works for practically all individual investors is because of the way in which it works – yes, that sounds circular, but here is the cut and dried version:
All companies listed on the NYSE or NASDAQ exchange must provide upon their listing with the exchange a large piece of capital (cash) which goes into a giant pile of cash or reserve fund with which the NYSE or NASDAQ guarantees all transactions, particularly selling transactions, regardless of size up to a certain point which is far, far beyond the scope of any individual investor’s ability to make. This means that you do NOT literally have to have a buyer linking right up to your sale of X company’s stock when you sell it; instead the exchange guarantees the sale against it’s reserve fund and also against the strong likelihood that some other investor will, during that day or within a certain limited time frame, buy the shares you just sold.
This is why you can always go liquid with stocks and why exchange traded stocks like Apple or Coventry Health Care or Barrick Gold are and have always been a far, far better investment tool than real estate ever was because with real estate, for example, you do literally have to have a buyer lined up to buy your sale at the point in time you wish to sell. This is why so many people have gotten so hurt in the housing market, they were using houses as giant pieces of stock in the completely mistaken notion that perceived market momentum would take the place of an exchange trade guarantee like that which the NASDAQ or NYSE provide to investors.
Now gold presents just as big a hazard as real estate because with the exception of exchange traded commodities contracts – NONE Of which are what you see on TV selling gold coins or with G Gordon Liddy talking about. ALL of the gold investments you see on TV would require a direct sale to another buyer if you wanted to liquefy the investment which has the distinct possibility that you’d be unable to go to cash if you ever needed to. True, gold has never been worth zero as they say, but it is also true that unless you come to terms with a buyer, your gold is completely useless as an investment vehicle. You are stuck with it in the absence of a particular buyer willing to do business directly with you.
Over the long term and even a middle-term of 20 years, the NYSE has creamed all other investment vehicles and modes of investing. All you need is to go to a company like Scottrade (with whom I do have an account) or TD Ameritrade or any certified stock broker and take charge of your own investing. It is really quite simple, you do NOT ever need a stock broker to do this. Open an account, fund it with what cash you are comfortable with, then simply buy some stock in whatever company you choose – the best way to do this is to buy stock of a company whose products you are either directly familiar with in a professional setting or whose products you like. That is it! One form to fill out, throw down some cash, and you are investing.
How do you avoid losing money? Well, investing is a R I S K. Crossing the street is a risk as well. Many investors do the pedestrian version of not looking both ways: they throw money into stocks but do not set up a very simple, very powerful safety tool, which is called the Good-Till-Canceled Stop Loss Order. With this tool that is easy to use and provided by all online brokers like Scottrade or TD Ameritrade, you set a limit under the current price of your stock. Generally, give it a Advantages Of Property Investment solid 5-10% range UNDER the current value so that sporadic trades don’t trigger the stop loss order to sell your shares unnecessarily. So yes, you may loose 5-10% of value but on the flip side as we have just seen over the last 2 years you are certain to miss out of rises of 30-40% in many cases as companies go to war to make themselves as profitable as possible. If you bailed out of the market in 2008 you are really hurting now as you have missed the huge rally that has been underway.
So what have we learned? Real Estate is never ever going to be a genuine investment because you cannot liquefy on demand. For that, you must have an exchange in which to buy and sell and the housing market for all of us regular folks will never be able to do that. Gold as well will never be able to do this because it requires direct sales to another buyer just like real estate. If you want to make money for the future, get back into the stock market using self-directed investing through Scottrade or TD Ameritrade, skip the broker, and use stop loss orders to shield against loss of value. It is really that and nothing else, no other “investment” the media talks about stands any chance of growing to where you can use it upon retirement or to fund any other life endeavor you may take on in 10-20 years time.

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