General - why Invest in Stock markets then other options of investments

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Stock markets investments are regarded as best investment options since it delivers better returns as compared to bonds. But these returns come on with a risk factor of stock market investments.

So here are major Advantages and Disadvantages of Investment in stock markets:

Returns on investment: Over time, stocks outperform bonds and real estate. Stocks on average return about 10% a year, whereas these other investments generally return at about 5-7%.


Save on Taxes: If you hold a stock for more than a year, your profits (when you choose to sell your stock) are taxed at long-term capital gains rate of 15% instead of your standard tax rate. Money you make from interest in a savings account or CD is taxed at your regular tax rate, which can be as high as 35%. Option of 

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Stock Investing Tips - repost

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Since my posts relating to investment tips are all scattered so i thought of making a post which consists of links to all the posts on Stock Investing tips, It might save your precious time as searching in the box would consume time of my esteemed visitors.
Do put your comments/views about these investing tips and strategies which I am going to share here.

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49 must follow Stock Investing tips
Short Selling explained
Online trading techniques for beginners
Making a profitable Investment
Stock Markets investing tips
10 Evergreen Investing tips
Best Investing Strategies
Dont's of Share markets
Choosing a Stock broker
Best Books to follow

Stock Investing - Things to avoid

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Stock investing is not that difficult as is pretends while seeing the volatility, The thing which it requires is sheer analysis, but still after making good decisions you can be on the loosing side, this may occur due to high fees which you have paid to your broker or some other trap.

So the most important things to avoid while stock investing are following:

High fees: A common investment trap is simply paying too many fees. These fees may be incurred by investing in a high fee mutual fund (such as a mutual fund with a load) or paying too much in fees to your broker to trade stocks. For example, if you do most of your stock trading over the phone or in-person instead of through the Internet, you are likely paying way too much in fees. Another way people pay unnecessary high fees is buying "investment advice" that they really don't need and likely does not help them.

Fear and greed: Books can be written about how fear and greed destroys investors. Most investors buy high and sell low. They buy after everyone else is buying and sell when things look glim since everyone is selling. This is a natural byproduct of human nature, and unfortunately, the exact wrong way one should invest in the stock market. Most people that actively watch their stocks have much worse returns than people who just leave their money in index funds since the market watchers get consumed by fear and greed and trade too often and at the wrong times.

Infomercials: The epitome of an "investment trap," these "systems" that are advertised on late-night tv are generally at best worthless advice and at worst outright scams. Do not follow these infomercials and never ever buy the product they are promoting, surely it would turn out to be a bogus.