Earning money in the stock market seem to be a good way to earn money these days. For instance, buying IPOs or initial public offering of new companies listing in SGX is one promising way. See the recent performance of IPOs such as Citispring.
Now how can simple folks like us participate in the booming stock market? Some say the best way is to buy mutual funds. Others say the best way is to buy index funds. But its also important to know your risk tolerance and investment time frame.
Most books on investing say the best strategy is to invest for the long term for at least 5 years or more. Other books advise to diversify. For instance, invest in different sectors like telecommunication or property but also buy blue chips companies to minimize risk.
The prudent way to start maybe is to consult a licensed financial advisor. Also read books on stock investment, attend free courses sponsored by the library or SGX and consult websites to learn more such as:
http://dl.nlb.gov.sg/victoria/2007/03/fundamentals_of_investing_and.html
Remember don't rush to invest but learn more about your investment style and the market. Otherwise it may be more prudent to keep your money under the mattress or bet in a casino.
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