Despite the economy's ups and downs, the stock market has consistently proven to be a good place to invest your disposable cash and save for your future as long as you can withstand the ups and downs and plan for the long term. The popularity of online brokerages attests to the demand for stock accessibility in an increasingly DIY society.

But the stock market can be risky if you don't know what you're doing, so you might need a little push before taking the plunge.

Whether you want to take on DIY investing or lean on a financial advisor, we'll lay out the reasons you should consider investing in stocks. Your savings won't do much if you leave them in a low interest bearing account. Without taking advantage of the market, saving for lofty goals becomes hard, if not impossible, unless you are already rich. These long-term goals often include:. Buying a house Saving for retirement Saving for your children's college education.

Many Americans Are Afraid of Investing. You don't have to suddenly become a CNBC addict or an expert on certain companies to invest in the stock market. If you have a k or you've had a plan an education savings plan , you have already taken part in America's proven way for getting the best long-term growth out of your hard-earned cash. Best Potential for Growth: Yes, the market has had its up and downs especially in recent memory , but over time, you are poised to get more by investing in stocks than you would with corporate bonds, commodities, or treasury notes.

The key to combatting the volatility of stocks is to control as much as you can by diversifying where you put your money. You may still want to have some bond holdings and other less risky options like a money market account, but you definitely don't want to put all your money in any one place.

The key to all this is thinking "long term. But if you have time on your side, you can likely withstand the riskier investments and ride the ups and downs that are inevitable. The hard truth of investing is that you can't get big returns without taking risks. Need more than history being on your side to get you comfortable with investing? Read on for our 23 reasons to take the leap into the stock market. How to Build Wealth in Your 20s.

Yes, we know the market crashed in And if you'd invested all your hard-earned money back in , you would have surely been singing the blues a year later. But times have changed and the economy is back on an upswing. After the Dow hit a year low in March of , stocks began to rebound.

While the market was by no means "healthy" then, great bargains could still be found. If you held stocks for just a couple of years, you definitely found yourself making some money.

Just ask Mitch Tuchmana, a retirement expert who reported that was a standout year for stocks. That will barely buy you a Frappuccino at Starbucks. You're better off putting some of that money to work in the market. Pay it off before you start saving and investing in the stock market.

Read this article on why it's better to pay off debt first. Cassimiro "Aranha" CC BY 2. Yes, the stock market can be risky, but if you're not looking for a get-rich-quick scheme and instead invest wisely over time, you will see your money grow in leaps and bounds.

Even after a bear market, stocks will become bullish again. How to Invest in Stocks with Little Money. Casually mentioning at a dinner party that you own stock in Apple sounds impressive, doesn't it?

However, realize that you'll need to cough up a whole lot of cash to buy just one share of such a popular stock, so you might want to consider investing in a good company that is a little less established and more attainable. If your friend is Mark Zuckerberg, you probably already have millions by now. But if you happen to have another friend with a really solid idea that seems like it could go places, pay attention and follow the process.

The more you are exposed to stock talk and news about IPOs initial public offerings , the smarter you'll be when it's time to lay your money down. Just be careful not to base all your investing on friends. Even Facebook's stock didn't perform as well as predicted when it first went public. You don't have to be a dedicated day trader to make money in the stock market.

Who has time for that? If you study the stocks you want to place your money in and watch their overall growth over a period of time, you're more likely to make a wise decision when purchasing them.

Buy low, sell high. And if you're still not feeling confident - or you want to be more conservative - stick to stock index funds to avoid having to pick any one stock. Beginner's Guide to Investing in Stocks. If it was only as simple as planting your money in a pot and watering it, we'd all be wealthy, right?

But since not everyone has a green thumb, we have stocks instead. It's the only real potential these days to see significant growth in your investments.

Your wad of cash that you keep stuffed inside a drawer isn't doing you any good. But if you place some of that cash into stocks, you'll likely wind up with more than crumpled bills. Best Online Savings Account.

You always hoped you'd make them proud someday. And just think of how proud they will be when you tell them know you've opened an online brokerage account and made some great investments. You can open an IRA and write it off on your income tax with a Traditional IRA , or open a Roth IRA and eventually take the money out tax-free.

Yes, you heard that right: Even if your stock goes down, you'll look cool just knowing the abbreviation on the ticker and saying, "Hey, there's one of my stocks!

Investor's Business Daily | Stock News & Stock Market Analysis - IBD

There will always be highs and lows. The real "Wolf of Wall Street", Jordan Belfort, was extremely smart, but he let his penny stock success go to his head. If you were paying attention between bites of popcorn and Junior Mints, you'd know that these pink sheets or over-the-counter stocks are extremely volatile. However, you can make money if you do your research and don't buy a Ferrari and a mansion the second you make a buck. He wasn't a huge risk taker, but he made wise choices. CNBC offers five investing tips from Mr.

Buffett that might eventually allow you, too, a brief stint on Floyd Mayweather's "The Money Team. You might be getting free snacks and a parking space with your name on it, but nothing beats a matching k plan. Hopefully this company is paying you well enough for you to invest in your own retirement plan and put your money in some stocks and an IRA.

It shows you know what you're doing by taking a level-headed approach to your investments by diversifying.

If you still think E-Trade is a diaper company, it might be time to get with the program, open an account with a brokerage and start investing for your actual baby's future. Smart investors shop around.

They don't just go with a brokerage like E-Trade because of one commercial. You should search, shop around, compare, and then make your move. If you can do that with the stocks you invest in as well as the brokerages you choose, you're ahead of the game. Though it seems like a lifetime away now, retirement will be here before you know it. The earlier you start saving, the more you will have later because of the power of compound interest.

You won't be able to save much if you wait until you're 55 to start. Investing in companies that matter to you can be a smart way to purchase stocks - as long as those companies have a good track record and a healthy business.

Putting all your money into a startup that promises to make flying cars, for example, might not be the wisest investment. Perhaps you're better off sticking to an established business that makes hybrid cars if that fits into your philosophy.

Many people want to invest in stocks to make a killing. And while this is certainly a possibility, don't put all your eggs in one basket. Make sure you have a diversified portfolio and disposable cash before trying to play the stock market. You could gain big, but you could lose big as well. Imagine sitting at home in your underwear and collecting dividend checks just because you invested wisely. Then you haven't started investing yet.

Planning ahead will rarely let you down. Invest wisely, and you can hang out at the senior center with a nice nest egg in your golden years. I firmly stand by 3 and 5. Comments may be filtered for language. CreditDonkey makes no guarantee of comments' factual accuracy.

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You should consult your own professional advisors for such advice. Read more about Investing. These long-term goals often include: Buying a house Saving for retirement Saving for your children's college education Related: More Articles in Money Tips.

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Ally Invest Scottrade OptionsHouse. Deals and Promotions Reviews and Ratings Money Tips Like us on Facebook Follow us on Twitter Subscribe via RSS. Updated March 2, 23 Reasons Why You Should Invest in Stocks By Cynthia Cohen Read more about Investing Despite the economy's ups and downs, the stock market has consistently proven to be a good place to invest your disposable cash and save for your future as long as you can withstand the ups and downs and plan for the long term.

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