Stock Market Investing Basics

    Published: 06-16-2009
    Views: 8,433
    Financial Advisor Ric Edelman explains the basics of investing in the stock market.

    Ric Edelman: In this video series we are taking a close look at understanding the stock market. If you are like a lot of people, your impression of the stock market is shaped by major events. And there was none bigger than the crash of 1929, which kicked off the Great Depression. Stock prices plummeted nearly 50% in just 17 days bankrupting many Americans. And then there was Black Monday, October 19th, 1987. Back then stocks fell 23% in a single day and of course there's our recent credit crisis. But the truth is while these events get a lot of attention, they really don't represent how the stock market typically functions. So if you're letting fear keep you from investing, you are making a big mistake. To help you understand why, we will begin by examining two major myths that keep you from investing in stocks and stock funds.

    I'll show you why the stock market has historically been the best place to grow your wealth and why it's important to stay invested all the time, especially when prices are falling.

    Finally, we will discover how people really lose money when investing in stocks and how you can avoid their fate. This information I hope will help you build a better understanding of the stock market and its opportunities. But please keep in mind past performance does not guarantee future results, all investments are subject to risks and fees, and there's no substitute for consulting with a knowledgeable professional.

    Carefully consider your objective's risks and expenses along with tax implications before investing.