What comes to your mind when it comes to stock investment? The answer could be a large amount of passive income.  If you are on that opinion, you are right but one thing you need to keep in mind is that investing money in stock could drive you crazy since your principal may lose in a couple of seconds because of drastic stock price drop. In association with this matter, investing money in stock takes you to know what you are buying. You need to be sure that you make an informed decision based on proper analysis. There is a general rule when it talks about investment: “high risk, high return”. This rule firmly applies when you buy stocks. Based on trustable data, stock becomes one of the riskiest securities to invest despite the fact that it enables investor to get optimal capital gain in favorable condition.  As investing money in stock is often not easy, it is a good idea to benefit from any tool that includes Dow Jones today. Information on such stock exchanges as Dow Jones will help you evaluate some aspects in your investment, so you can make a decision on whether to sell or hold it in longer time.
Things to Avoid In Your Investment

Investing money, no matter what, is about taking a risk. It means that you could put your money at risk when something unexpected happens. Supposed that stock price dramatically drops due to specific issue. This condition could lead you to lose half of the principal. Wrong analysis also has something to do with high risk of investment. For this reason, it needs you to use not only one analyzing tool to make informed decision. If you are a newbie, then it takes you to increase your insight in stock investment first prior to taking a bundle of stock as your investment. Success in your investment is not something overnight. This takes enough time, sacrifice, patience and eagerness on learning.  Investing money in stock firmly needs you to be information sensitive, so you can make prediction on which you can make a good choice.  One thing you should not ignore when it talks about investment in stock is to keep up with information of stock exchanges such as Dow Jones today.  A stock exchange usually informs a wide variety of data like indices by which you can put analysis together.

As stated above, investing money is about bearing risk and this is the reason why optimizing your time is a must. In this case, you certainly need to know every single thing of your investment.  You should not mess around in investment, regardless of the type, since this thing can lead to serious problem. The first thing you should deal with prior to stock investment is to establish your budget. In tem of this thing, you really need to allocate your personal finance to be two categories. The first one is to set certain amount aside for your personal needs, while another one is to set your fund for investment. If you take whole of your money in stock investment, this thing will trigger a problem especially when investment output is out of the box. The fact shows that some people go crazy due to great loss of money; they only think of big potential passive income without really paying attention to the risk that may pop up. In conclusion, make your investment the right way by providing partial portion of your personal fund, so if you find something unfavorable in your investment, you still have financial reserve to survive.
Market Order, Limit Order and Stop Order In Stock Investment

If you are interested in stock investment, there are so many things you need to know well.  Here are several common terms you must recognize in stock investment.
  • market order
    This term is a common kind of order associated with market order of buying specific amount of stock investment.  A main trait of this order is that there are no qualifiers of price, so there still be fluctuation until one makes a deal. Talking about market order, price you receive is likely to be in different level compared with that of the last one.
  • limit order
    Unlike market order, this term is about an order to buy stocks with determined price. Just take a look at this example. You are about to buy 100 shares of Apple at 25 USD. the limit order of your purchase is 2,500 USD, not more than that amount.
  • stop order
    It is an important term commonly well known among traders in any stock exchanges including Dow Jones today.  When it comes to stop order, you need to remember two words “buy” or “sell”. It is your time to make informed decision and will have something to do with your investing profit.
Is It A Benefit To Invest In Stocks?

In a common sense, the main purpose of investment is to grab as high capital gain as possible. Thus, the answer of the question is yes. Based on the general rule, “ high risk, high return,”, you will be able to get optimal capital gain in investment but the higher the capital gain is, the higher the risk. So, investment is not only a matter of thought on how to optimize your profit, but also something that you need to minimize risk. Investing in stock is similar to gambling on casino as this also inherently contains risk and takes your luck. No matter how clever you are, when you are unlucky, you could lose your principle in the investment. Dow Jones today firmly can be your reliable source to minimize risk of your investment as there will be some important data for useful analysis. Certainly there are still many other sources you can count on when it talks about investment in stocks. The most important thing is to do your best by benefiting from any available tool. One more thing really important in your investment is don’t be in a hurry since all of the things must be estimated the right way.

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    August 2013