Understanding Investments

The main goal behind investing is to profit off of your orginal principle or your initial investment. The basic investing idea is to buy low and sell high which goes without say but in most cases is easier said then done. Here are some ideas to gain some practical knowledge of the stock market. Bonds are a great way to go for the long run. You might want to go ahead and look in the live offerings that online investment sites offer. You can invest a minimum of 1000.00 dollars in a bond that will offer a 11 % coupon (interest rate) for about a year. But once your locked in your money is untouchable till it matures. Less Risk coupons are low more Risk higher the coupon. The only downfall to bonds is that you can have a total loss if the company folds. So instead of investing in Mrs fields cookies for 11 % coupon you might want to go into anhausier busch co for a 9 % coupon.
Stocks are for the short term investor who can stomach losses day to day but ultimately have the abilty to maximize the profit in a short period of time.