how to buy stocks online | DOW 10,000 ON 10/14/09 – WHAT DOES IT MEAN FOR BEGINNERS?

It has been a little more than a year since the Dow passed 10,000 on its rapid descent all the way down to 6,600 or so. Now, having steadily climbed its way back, what does it mean for the future of stocks right here? If you are interested in buying stocks for beginners, is this a good time to get involved?

Since hitting the bottom, the stock market has seen a few ups and downs but if you look at a chart, you will see it is a pretty steady climb back up. All this at a time when people are still getting laid off and going to work every day wondering whether it could be their last. President Obama is in office now and is determined to pass higher taxes, especially on small businesses. This can’t be good for business in general or the stock market in particular.

If you got hit hard with the Dow’s decline from 14,000 to about 6,600, you have to wonder just how safe the stock market is at this point. Many of us used to think and approached the market as a elevator that only went up. It might have occasionally gone down a floor but mostly it was a one way ticket up.

Now though, with many retirement accounts and savings accounts in shambles, we realize that stocks are not a guaranteed safe investment and we need to tread carefully. Climbing back to 10,000 is a good thing but it doesn’t mean anything for the future. Many stocks are still near their lows (take Citigroup) and may never recover. Banks are in trouble everywhere and people are still foreclosing on houses. Things may be getting better in the United State, but not that much better.

If you have the impulse to jump back in (or invest for the the first time) just because the Dow is back to 10,000 and don’t want to miss the ride back up, remember that their is no guaranteed ride back up. The market can just as easily go back down as it can continue to rise. Who knows what big name company might be facing bankruptcy or scandal right around the corner which will help send the market tumbling back down.

This Christmas season is almost here and does anyone know whether people will be willing to spend? My bet is that this Christmas may be a bit better than 2008 but still nothing to celebrate. There are just too many people out there who don’t have the money to buy the things they would like to have and give. Right now, people have to pay their bills and save first before they go out and buy those gifts they are used to giving.

If you are looking into how to buy stocks for beginners just because you see the market approaching and hitting 10,000, please don’t necessarily just jump in. You need to study and learn a few things first before you invest your hard earned money. You shouldn’t get swept up in the enthusiasm of stocks just because the Dow reached some magical or milestone number. If you do, you might end up regretting it like so many before you have in the past several years.