2. McGraw-Hill/Irwin
Bank Management and Financial Services, 7/e
© 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.
• One thing that really benefits small
investors is that they don't move the
market. When you trade, nobody is going to
see that impact. so you can basically sneak
in and out of companies taking profits off
the table left and right.
3. McGraw-Hill/Irwin
Bank Management and Financial Services, 7/e
© 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.
• The "Big Dogs" Don't Want You To Its a fact.
Plain and simple, the big market players
(mutual funds, investment banks, stock
advisers, etc.) don't want you messing
around in their rich-man's game because it
is a market that they used to control.
Slowly, but steadily, more and more people
are owning stocks... and for good reasons!
4. McGraw-Hill/Irwin
Bank Management and Financial Services, 7/e
© 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.
• The Stock Market Typically Goes Up Don't
always believe the recession-doomsday
hype. It is a fact, in fact, that throughout
the history of the stock market, the average
recession has seen S&P Index returns of
+3.14% during the actual recession, and of
+28.20% three years forward from the first
warning signs of recession.
5. McGraw-Hill/Irwin
Bank Management and Financial Services, 7/e
© 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.
• The stock market has the ability to weather
a storm, and it seems like the most brutal
hit has already been served up...although
we could fall a bit further. The point of the
matter is that as long as you are investing
in the right areas, you should be recession-
proofed enough to make money regardless
of the macroeconomic conditions at play.
6. McGraw-Hill/Irwin
Bank Management and Financial Services, 7/e
© 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.
It's Cheap and Affordable to
Invest Now!
• Over the past decade, tons of discount
brokers have been cutting their rates to
encourage you to use their services and
invest. Equity trading has gotten faster,
cheaper and easier than ever in the 21st
century!
7. McGraw-Hill/Irwin
Bank Management and Financial Services, 7/e
© 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.
Potential Upside Outweighs
Downside Risk
• Investing is not about letting it all ride on
lucky seven. When you buy a stock, you own
a piece of that company, if the stock price
goes down, it goes down... but you
shouldn't be losing any more than 20% of
your initial investment at any rate.
