Friday, February 15, 2013

Why Technology Company Stocks Are the Safest Bet for Investment

The first thing you need to know about the stock market is that anyone (above the age of 18) can invest. Online stock investment applications, such as E-Trade and TD Ameritrade have revolutionized the once experts-only club and turned investing for the future into a normal, everyday practice. The biggest decisions one must make when investing their hard earned money into such a risky market is how much money to invest and where to invest it.

Obviously, how much money you invest will, in turn, effect which companies you will own shares of. Everyone knows the basic philosophy of the stock market: buy low and sell high. That is the primary way to make money, and there are certain types of companies that will make you more money than others. In my own experience, I have found that purchasing shares in technology companies are the safest investments to make.

Currently, I own shares in processor company, AMD and computer hardware company, Dell. AMD has not been one of my better purchases, but it is slowly rising back up to what I purchased it for. However, Dell has been my main cash cow. Near the end of October, I sold my shares in Office Depot, which made me a profit of $15.00 total and purchased some shares of Dell at $9.50 a share. Currently, the Dell stock is valued at $13.78 per share. With just Dell stock in mind, I have made a 29.95% net gain on the money I invested initially.

Many over the last decade have seen major gains from certain technology companies. Apple and Microsoft, for instance, skyrocketed over the past decade and have made many people much more well-to-do than they were. Apple, recently, took a nosedive, but I am sure that it will resolve itself. When a technology company's stock trends down sharply, in many cases, the company will reevaluate within a few months to fix the problem. Such was the case with Dell, and I bought shares of the stock when it fell harshly.

You may thing that investing in the stock market is too risky. However, without risk, there is no reward. If you are bit skeptical, invest only $200 or so just to get your head in the door, as I have. Sure, the gains will not be monstrous, but it gets you used to the joys and pitfalls that associate with trends. Think of the stock market as a smarter way to gamble your money, in which you control your own destiny with the companies that you choose.

Written by R. Turk
http://expertscolumn.com/content/why-technology-company-stocks-are-safest-bet-investment

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