I have a lump some of money that I want to invest into the stock market, but im a bit nervous about it. I want to invest and pretty much be sure im going to capitalize off of it, not loose it all and be vary upset.
It depends entirely on your time horizon and your expectations. In general for investors investing for the long haul (10+ years) the stock market is almost always a winning investment, but it is volatile and its important to be aware of that and keep a level head. You will sometimes lose money in the short term, but remembering to see those blips are opportunities, or being cognizant of the big picture is important. Being a well read and informed investor is the key.
On the other hand investors who day trade or invest in penny stocks without being knowledgeable and not having access to sophisticated tools will lose money far more often then they win because they are essentially gambling. Investors who trade on emotion also fail because they tend to buy at the most inopportune times and sell into downturns. The Wall Street Journal has a great article on emotional investing today that’s an interesting read.
The key is to be informed, to stay informed, and if you can’t be then you should hire someone who is, whether that be by purchasing a mutual fund, or opening an account with a firm and using the tools and advice provided by firms like Schwab, Fidelity, and TDWaterhouse, or a full service financial planner.