Alway Play Safely In The Market

September 9th, 2008

A stock market for dummies rule that applies to all investors deals with the amount of money you should invest in the market.  Well start off by eliminating any money needed for you to live on.  Only invest with money that you are saving.  From that money split it into three categories: stock market, bonds or money market, and cash.  Depending on how bull the stock market is, you adjust the amount of money you hold in the stock market.   If the market is hot, you probably would want to hold a majority of your money in the stock market.  However, never drop your cash reserves below 20%.

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Entry Filed under: Business

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