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Too Chicken To Buy Stocks

February 16, 2007

Does it make sense to read books and magazines on building a stock portfolio but not actually have one?

Theoretical Investing
I loved reading the Intelligent Investor and am just starting on A Random Walk Down Wall Street. I look forward to getting the latest Smart Money and Kiplinger magazines in the mail every month and enjoyed breaking down corporate financial statements in my graduate classes. I know the concepts and fundamentals so what’s my problem?

Risk Averse
I lost several thousand dollars in the technology bubble during my introduction to the stock market in the year 2000. I learned some valuable lessons but since then have bought mutual funds and haven’t purchased a single share of stock. I know a lot more about investing now, I just can’t seem to get myself back in the saddle.

Easing Back Into Investing
I ran across a virtual stock game today at eFIPO that I’m going to use as my launching pad back into investing directly into stocks. The Virtual Stock Exchange by MarketWatch will let me practice analyzing companies and seeing how their stock performs over time. I’m not planning on making individual stocks a large portion of our portfolio. My goal is to hone my financial analysis skills to the point where I can find a few quality stocks for the long haul.

Back To Reality
Of course, this is just an exercise to strengthen my knowledge and grow my experience. Sooner or later I’ll have to suck it up and put my money where my mouth is. When I do, I’ll be sure to checkout the different brokerage reviews over at Generation X Finance to help me determine where to get started.

Ben

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Ben
Ben Edwards, the founder of Money Smart Life, saved up enough to buy a Nintendo back when he was 12 years old. When he used the money to buy shares of Wal-Mart stock instead, he knew he wasn't like the other kids... His addiction to personal finance has paid off for his family and now he's helping you to afford the life that you want. Check him out on the web at Google Plus, Twitter and Facebook.

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Written by Ben Edwards · Filed Under Investing, Personal Finance 

Comments

4 Responses to Too Chicken To Buy Stocks

  • moneysmartz
    February 17, 2007 at 7:52 pm

    I was the same way. I bought B2B companies because they were “hot” and hung on every word of Squawk Box. Hopefully I’ve learned my lesson 🙂

  • my wealth journey
    February 17, 2007 at 7:45 pm

    I lost more than just a few thousand in the bust and blame most of it on myself. I wasn’t really informed about stocks and bought because everyone bought and was making a killing. I started to get back into it a few years ago by investing in funds and I slowly got back into buying individual stocks after the funds didn’t do too bad.

    P.S. Great blog, i’m a first timer.

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