This morning I am taking advantage of a nice quiet house, not that it is ever loud, to get online and learn more about the stock market. It seems to me that the huge decline in stocks these past several years or so has brought the price of many stocks down to a price point where there are good opportunities for smart investors. Four years ago if you told me to invest a couple thousand dollars into a handful of stocks, I would not have gotten much for money. The price per share would have been so high that I would not have many shares. Now that the price has dropped to what I call an adjusted level of reasonable price points, the challenge is to find the businesses that offer good value for the investment and that have a good to excellent chance of coming through this recession as a healthier, stronger company.
If you find the right companies for this investment strategy, you will be rewarded in a few years with rebounding share prices. A good friend told me about a web site that is an online stock broker and also a great learning tool. They have a great feature called a “paper trade account” so that you can play the market without risking real cash. Once you are comfortable with the results of your paper trading efforts, you can easily open a real account and manage your real shares. What a wonderful idea that I believe I am going to check out here real soon and would urge others to try out as well, just to get a good idea of how it all works before jumping in.