You Should Invest in the Stock Market, Part 1
You Should Invest in the Stock Market, Part 1.
There are many questions asked by people wanting to know if they should invest in the stock market. The answer is simple, while there are market fluctuations throughout history and a potential loss of your investment, it would be prudent to invest what you can afford to potentially lose. Some people invest to get a return on their investment to build wealth slowly. Other people use the stock market to make a living from it. The uniting factor between the two is that Investing and Trading requires one to study and learn the intricacies of companies and their stock.
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I recommend everyone to gain knowledgeable through reading various books. I have to say that the stock market, and how it operates, is a very complicated subject. It is a mathematical art form, combining the psychology of a human being in addition with testing the inner strength of your own personality. For the amount of lessons that can be taught, you probably will not get a better training in learning about the world and yourself than the stock market. All your flaws will immediately be shown and it is up to you to gain knowledge from this. After doing this for over nine years, I have learned a lot about myself, and what I must do to improve myself as a person.
By investing in companies that are strong, for instance like Apple, Google, Amazon, and others, you give yourself a chance to build equity through the products most people use. As an example, it is like being a part of an affiliate program on Amazon for bloggers. A blogger can survive through means of Google AdSense and other programs, but having an additional way to earn income, through affliates in this case, can be a good thing, no? The same goes for choosing stocks like mentioned before. You know they are mainstays for a long while. Why not be able to get extra income through the means of Apple’s earnings and sales? It would be a darn shame if you will miss out and only be a product buyer and not an investor of a massive company.
There will be scary situations, like the stock market crashes that occur sometimes. The thing is, usually, huge companies work their way out of a given situation and get their act together. Not only do these companies survive, but they also thrive on those conditions. Buying lesser known companies are extremely risky due to this exact point. We do not know how they will survive on a crisis. They might be making loads of money when things are good, but how strong are they really? Do you want to risk your money on some company that might not make it? I don’t, and so will always advise everyone not to either.
This concludes my first article concerning the stock market. I would like this article to sink in and will later write more articles concerning this very important subject. In the meantime, check out my Finance Blog.