Investing Blunders Everyone Should Avoid In The Wall Street Game

Making investment in the stock market is the riskiest thing you can do with your hard earned money

. On the other hand it is one of the most profitable one also. So, its but natural for you to have reservations on dabbling in the stock markets.

You need to make friends with tow people to get started with the stock market investing. Firstly you must first find friends who invest in the stock markets. He must be some whom you can trust and then you can seek his advise. Secondly, you must locate a efficient stock broker for starting your trading activities in the stock exchange.

Few other things which you should see and analyse while proceeding with investment are:

Costs

The annuities which have the insurance features would be more expensive to you than simple mutual funds. If your annuity has more insurance features, then high annual fees would be applied to it which would affect your profits.

Early withdrawal penalties

The insurance investment plans are made for the retirement. If you take out money from the premium then you will have to pay some penalty to government as well as insurance company. So when you withdraw, you will surely get penalized.

Death benefit

If the stock you own are down at the time of your demise, your beneficiaries will be eligible for the investments you initially invested in. On the other hand, if the stocks are on high, they will be taxed as a usual income.

Tax cuts

Normal mutual funds and stock market investments qualify for low capital gains resulting in smaller taxes.

Timing

There are some times, when you can make investments and some times you cannot. Like in case of some natural disaster stock prices nosedive, and there is no guarantee that these would recover soon to give you profits.

This is a fact that making investments in stock market is a risky thing and you could lose money at some point in your career. But it is all part of learning process for you. You must not stop and give up on losing some money. Just seek advise from veterans and learn the tricks of the trade and you would soon flourish in the stock markets.

by: Michael C. Miller

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