Wednesday, January 2, 2008

The Best Lottery Ticket You Will Ever Buy!

As I got home today I remembered that I had bought a lottery ticket for the mega millions last week, of course immediately all those thoughts of the things I could do with all that money came flooding in. Hmm a new car, new house, retire... I went to the computer and looked up the numbers... guess what? I didn't have a single number on a five dollar ticket. No real surprise, as the lottery is nearly impossible to win, but the real question was why did I just throw away that five dollars?

Let's say though you take that same five dollars and all the other money that you have waisted into the stock market. Think of it as a lottery ticket that never expires, can go up an infinite amount, sometimes pays you money (dividends), and can never go under the amount that you put in. Sounds too good to be true, but that is exactly what the stock market is all about.... one big lottery.

Just think of all that money that you just throw away every day whether it be from lottery tickets or some other vice. I don't know about you, but I am ready to retire already aren't you? Think of the stock market as educated gambling. There are numerous tools that you can use to help you beat the odds. First of all, try to find yourself a hot industry that you feel will continue to grow in the future. Then find the company that has the biggest potential... this is not always the obvious choice.

Make sure the company has good fundamentals, which simply means that they have cash on hand (it's nice when it is increasing), their assets should be growing at a faster pace then their liabilities. All of this you can find at the companies website under "The Balance Sheet" (they all are designed the same so don't worry once you have seen one you have seen them all).

Next, look at a companies Income Statement which shows you how much money the company is really making. Of course this should be increasing (the quicker the better), you can also find out if the companies pays you a dividend (a cash or stock payment made normally every three months).

Sure, there are a lot of other factors that go into buying a stock, like it's float, p/e ratio, the health of it's industry, and general market conditions, but the fact remains that stocks can be your ticket to early retirement, not that lottery ticket you just waisted five bucks on...

1 comment:

  1. I have been into online lottery for a couple of months now. Although I have not made any big money, I haven't been into losses either. These days I have heard about a lot many scams and fake notifications on lottery winners. Is mega millions one of them? I was thinking of buying some tickets for it, but wanna make sure it's real!

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