money guidance and how to get rich_121

_{You betcha. Here are a few.}

_{them. These are all extra-risky ways of investing. Only experienced}

_{investors should use some; others are best avoided by all.}

_{a few weeks, days, or hours is not investing — it's gambling. Real}

_{investors think of themselves as committed part-owners of businesses.}

_{Convinced of a company's value, they plan to hang on for}

_{many years.}

_{The longer your investing horizon, the more likely the stock market}

_{is to rise, and the less risk there is of losing money. In the short term,}

_{anything can happen — including market corrections and crashes.}

_{One or all of your holdings could fall by 20% tomorrow. If you're}

_{holding on for years, you can ride out downturns. If you plan to sell}

_{in 15 or 20 years, what happens this year isn't a big risk to you.}

_{have of making mistakes. Too many people buy companies merely}

_{on "hot" stock tips from friends or strangers. Sometimes they don't}

_{even know what the company does.}

_{Lynch. Read Berkshire Hathaway Chairman Warren Buffett's let-}

_{ideally companies whose products or services you use yourself.}

_{in their financial statements. Consider valuation. A company that}

_{seems undervalued (according to measures such as market capitalization,}

_{price-to-sales and price-to-earnings ratios, and expected}

_{future earnings) should offer less downside risk than an exciting}

_{highflier. You can do well with some highfliers; just understand}

_{that they're riskier.}

_{By reducing your risk, you'll increase your chances of doing very well.}