Two weeks ago I received a tip that one of my favorite websites, Pandora, was going public in the stock market and I decided to jump in early and buy a few shares. I don’t have thousands to invest, but I figured if Pandora could multiply a few of my pennies in the same way LinkedIn did for others when it went public, why not?
Since then my pennies have dwindled down to pesos.
Every day I’ve been glued to the NASDAQ website, watching the stock go up and down, and at one time, plunging down to nearly half the price of what I paid per share. I was mentally kicking my own butt, but then consulted my hubby who is well-versed in these matters. He chuckled at my angst and gave me a few ground rules to live by when it comes to playing the stock market:
Consult with him first. He’s a numbers guy with a history of solid investments. That was a rookie mistake on my part. Next!
Don’t check the price of shares daily. Stocks rise and fall, and unless you get lucky to hit a bulleye on one that goes crazy when it first goes public, don’t expect to make a mint overnight.
Read before you invest. I bought stock as an impulse purchase – not a good move. Had I read infomation on the NASDAQ site, briefed reports fom the U.S. Securites and Exchange Commission, and perused sites like MarketWatch and Bloomberg, I would have made a more well-informed decision about where to place my money.
Don’t be afraid to take risks – it could pay off. Investing in Pandora was a risk because in spite of how many users it has, it isn’t yet a profitable site. There is no charge to its customers to use its services and furthermore, it has competition on the horizon. Nonetheless, my stock went up this week to the highest its been since I purchased it, which is promising. I think I will ride this one out and see where it takes me.
TO BE CONTINUED…
Thanks for sharing. I have been pondering the idea of investing in stocks as well. I have no idea where to begin. Keep giving the pointers.