how do I invest my lotto winnings in the stock market?
April 13th, 2009 | by admin |na na asked:
I have about two to four thousand dollars that I want to invest in stocks or mutal funds that will double or even tripple when this recession ends. how do I go about making my money work for me in this way?
Jane
I have about two to four thousand dollars that I want to invest in stocks or mutal funds that will double or even tripple when this recession ends. how do I go about making my money work for me in this way?
Jane

7 Responses to “how do I invest my lotto winnings in the stock market?”
By It came with the frame on Apr 14, 2009 | Reply
Boss screamin’ in my ear about who I’m supposed to be
Getcha a 3-piece Wall Street smile and son you’ll look just like me
I said “Hey man, there’s something that you oughta know.
I tell ya Park Avenue leads to Skid Row.”
By pavani y on Apr 17, 2009 | Reply
ya dts a good deal..investing in stocks but not much easy..u should have some basic knowledge about stock market and stocks that u gonna investing in…so bttr do you homwork before going to invest…and i suggest u to browse vantagetrade.com ones as it is a good stock analysis portal for beginners..it gives BUY and SELL signals on Stocks…it really workd for me..accurate signals.
By IndigoLizard on Apr 18, 2009 | Reply
I’m studying in the field of accountancy and one of my hobbies is the stock market and investing. I’ve been following the stock market for the last 4 years and I can tell you this, making money in stocks is NOT easy nor is it something you should hand-off to a so-called “professional”.
Some professionals out there will manage your money in stocks properly, but most will simply diversify you among many stocks with absolutely no consideration at all if the market is going to go up or down in the next six months. These professionals tell you to buy and hold. My dad bought-in 10 years ago and he’s sitting barely even in his stock investments today, some great advice buy and hold was for him.
First, identify your timeframe for the investment. If you’re planning on investing this money for less than 2 years, I would reccomend not using the stock market.
Second, what is your risk tolerance? Can you afford to lose 20% of this money? Losing money in stocks is quite possible, but to reduce that risk, this brings me to my next point…
Third, with the amount of money you’re talking about, you should consider using a diversified investment like a mutual fund or ETF (exchange traded fund). This allows you to diversify your risk among many stocks, instead of placing all your bets on one or two companies. Diversifying across many stocks also means you should -not- expect to double your money in a short period. If you earn an average of 8% a year with your money, then it should take about 10 years to double your money.
Sure, you can *not* diversify and invest in individual companies that you think will shoot up, but to do that is a bit of a gamble and requires a lot of knowledge about investing in companies. Can you read financial statements and understand them? If not, don’t even try this method.
If you want to go the ETF route, which are basically indexes that have small fees that you trade like stocks let me throw a couple out there for you….
SPY – Its value tracks the S&P 500 Index… which by definition *is* the stock market. If some talking head on tv says the stock market is up 20% this year, they mean the S&P 500 is up 20% this year. Buying this is like buying the 500 companies that comprise the Standard & Poor’s 500 Index.
FXI – This tracks 25 Chinese companies. It’s a diversified way to invest in China without worrying about the prospects of any individual Chinese company that comprises the index.
TBT – This is a complicated ETF, but it just demonstrates how versitile they are. When the 10 year treasury note increases in value, the TBT decreases in value. When the 10 year treasury note decreases in value, TBT increases in value.
What this means is that if interest rates on 10 year treasury notes rise, then TBT will have increased in value. So if you follow the actions of the Federal Reserve, which you should if you’re investing in the stock market, then you’ll make money in TBT when interest rates start rising. Interest rates will start rising when the Federal Reserve becomes worried about inflation and begins to increase interest rates.
——–
Concerning the comment about paying off debts, yes! If you have any debts at all, pay those off before investing, otherwise you’re in the game of trying to beat the interest rates on the money you owe.
By Ninja grape juice on Apr 19, 2009 | Reply
A couple of things:
Don’t worry about doubling or tripling your money. Worry about keeping it. Invest in a company that you are 100% sure is not going to go under, like Disney, Wal-mart, GE, Exxon, or other big name companies. They will pay dividends while you wait for the market to recoup its losses and are not likely to go to Zero price.
Forex is the quickest way to not only lose all of your money, but to wind up owing more of it. Avoid it.
I would go with oil stock or other resource stocks.
By skyjoe76 on Apr 20, 2009 | Reply
It is important to do investment. Just be aware that not all investment is suitable for everyone. Firstly find out what kind of investment suits you.
Do intensive research on the kind of investment that suits you. Invest blindly, you may also lose your money blindly.
More information on investing here
By Dr. Marv on Apr 23, 2009 | Reply
Like many of the above said, don’t worry about doubling or tripling your money. With the amount of money you have to invest I would advise you to go with index funds, ETF’s, or/and solid blue chip US companies in this unstable economy.
If you want a good online stock broker I would recommend Scottrade. You can visit them at. Enter this code: UDUA2252 in their referral program and receive 3 free trades.
Before you invest in anything, do your homework!
Best of wishes!!
By stefff67 on Apr 23, 2009 | Reply
µµµtripping or doubling you money isn’t easy to achieve, however it is possible.
But I stongly believe the ecession only just begun.
So I would search another investment option instead of the stock market.