Hey, Billy! I have heard that you were wanting to save up 2000 dollars in seven years, by investing in the stock market. I have some advice for you that will reduce the risk of you losing money, and if you do lose money, there are ways to cut your losses. They include choosing different stocks, investing in bonds, and making sure some of the stocks you invest in pay dividends. By doing this, you will be able to make 2000 dollars in seven years with no problem! One of the first things I would suggest for you to do is to make sure you don’t invest all your money in one or two stocks. This is one of the worst things you can do, as if the stock you had invested in crashes, you will lose a large chunk of your money. Instead, you should try to invest in a number of different stocks. This way, if one or two of your chosen stocks crash, you will end up minimizing your losses, as not all of your money is invested in that stock. Also, you will still have ‘backup’ stocks to keep you making money off of the market. …show more content…
If you make sure some of the stocks you invest in do pay dividends, you will end up making extra money, without even having to sell the stock! This extra money can go to more stocks, bonds, or you could put it in savings towards the 2000 dollar goal. Even if these stocks lose value or crash, you will still keep making money off of the company, which can help you earn back the money you lost and still end up turning a profit off the stocks. Also, towards the end of the seven years, you can sell these money-making stocks to give you some extra cash to reach the 2000 dollar