Is investing in the stock market risky?

Question

Investing in the stock market has always been considered risky as I have been told. Can somebody throw some more light on this?

Answer 1

There’s risk involved, though, in terms of stock investing, the worth of your investments can increase or decrease. If you are in those variations as well as taking into consideration that you have diversified your portfolio mainly through index investing, and don’t miss your regular inlays across several years, data from past decades shows you can withstand market pressures. Starting early and continuously making contributions can hugely affect the scope in which your investments grow in relation to the factor of compounding and how it occurs over a period of time.

Comments

My advice to new investors: Buy good companies stocks and hold them as long as they are good companies. Just do this and ignore the forecasts and market views which are at best entertaining but completely useless.

---

Sometimes Protecting your capital is much more important than making money. Basically because if you lose your capital, making money is much harder. ''Missing the train'' vs. ''losing your money''. There are a lot of trains, but if your money is gone, it's over.

---

What sets top investors apart from the rest? I've got $385K in equity from a home sale and I'm unsure whether to put it into stocks or wait for a more favorable market condition.

---

The market's direction can swiftly change, with indexes frequently transitioning from a bear market to a bull market. It's tricky during election years. I recently inherited a lump sum and want to invest it wisely. Any tips or strategies to take advantage of this potential upswing?

---

Recently bought some recommended stocks and now they are just penny stocks. There seems to be more negative portfolios in the last part of the year with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?

---

Crypto is risky as many would say but I think the actual risk in Crypto is not investing, buying the capitulation isn't a tough call, but it is a very tough call to figure out what to do aside holding. I remember when I first got into crypto but later I ended up selling it because I was dumb and I didn't understand it. I studied and learned and now I know how it works. Got back into crypto early this year with 10k and I'm up with 128k in a short period of time