Quote:
Originally Posted by raymondo510
Well from what i've been reading there are short term investments like "penny" stocks and mid to longer term investments. I was thinking of starting small so I can get a feel for things so I was thinking on smaller short term. Im not looking to make this a full time job, maybe just a way to earn a little extra income. I understand it's a bit of gamble. I have some money saved, but I'm not willing to put it all on the line, is that what you meant?
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Exactly. If you're not comfortable with the idea of losing every bit of your money, stay away from penny stocks. You can have plenty of short term investments that aren't penny stocks. Figure out how much of your money you're comfortable with losing. That's going to determine what kinds of stock to buy. If you're ok with the possiblility of losing a lot of it in exchange for the potential of higher returns, buy small and mid cap growth stocks. If you don't feel comfortable with a big loss and are ok with lower returns than the more aggressive stocks, buy large cap stocks with a healthy dividend.