Best Investments For Stock Market Beginners

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Watching the stock markets rise and fall, you can imagine why a total beginner might be frozen withfear.

A thousand points in six months! Two hundred point drops! Booms and busts! Which are the bestinvestments, our novice rightly asks.

Well, first of all, let's put that volatility into some much-needed perspective. Yes, 2008 and 2009were seriously frightening years for stock investors. A decline in the Dow Jones average from above14,000 down to 6,626 was hair-raising.

But we're back above 15,500 now, just four years and a few months on. Unless you expected toretire in March 2009, the move -- while dramatic -- was not relevant to you.

Yes, it was relevant to everyone, of course. But, if you are a stock buyer, which by definition most ofus are, a decline is welcome news, not a reason to give up. Prices fell. Bargains were everywhere.

Ah, you might say, but who buys at market bottoms other than traders and crazy people? Well, indexinvestors do it all the time. Portfolio indexing is nothing more than holding a variety of investmentsin precise measures, according 100 percent profit bot review and bonus to your tolerance forinvestment volatility and how long you have until you retire.

Some of these investments are dividend payers. Some are interest-paying bonds. Presumably, youare working and saving money to invest with every paycheck.

If so, and you should be, then 2009 was a great year for you. The holdings you already owned fell inface value and only turned into losers if you panicked. And stocks previously priced out of rangewere there for the plucking.

Best investments 1, 2, 3

Stock market beginners need to understand only these three simple ideas:

1. Index funds and ETFs represent your best opportunity to diversify and cut risk while staying

investing in markets high or low.

2. A well-designed investment portfolio will neither zoom higher with equities nor crash to earthwith corrections. Rather, you will sell off as stocks rise and reinvest in them when prices fall, usingnew cash, dividends and interest inflows.

3. You are not retiring tomorrow, next month or next year (unless in fact you are). Most people tradetheir retirement accounts as if every day were do-or-die. It simply isn't true, and you shouldn'tapproach retirement investing that way.

You can get the kind of steady, compounding return that investment pros seek and you can do ityourself at minimal cost and risk. All it takes is a broader view of the opportunities in the marketsand the patience to see a serious retirement plan through to the end.