In fact, most people don’t know enough to pick out good mutual funds or know whether they should be invested in their company 301k, let alone individual stocks. Think of all those people at Enron!

Buying individual stock (and often mutual funds other than the general index funds) is at best partially speculative. It is safer to keep your basic investing in a solid Roth IRA and look at any other investing as a fun game with extra money.

Sadly enough – they listen. Get burned. And like a person having a bad experience with one car manufacturer – they write off the entire stock market and say “all stocks are bad. They’re risky! Don’t invest because I lost all my money in this one stock”

People need to use more common sense when it comes to investing. The same way you wouldn’t jump into the deep end if you don’t know how to swim is the same way you shouldn’t jump right into stocks if you don’t know how to invest.

Everyone wants to hit the home run without going through batting practice. It just doesn’t work that way in life or with investing.

Do your research. Become familiar. Review the company’s Income Statement & Balance sheet. If you want the truth. It’s all in the numbers right there for you. With that information, you’ll be well equipped to make an informed decision.