I am sure that at one point of time every person gets curious about stocks, it can be a child/teenager who is puzzled by the price chart of a stock or a grown-up who is amazed by seeing his neighbor making a fortune by investing in stocks.
One thing that follows the curiosity is that what makes this stocks go up(or fall down)? is there any method to predict it? or more specifically put it “How to make money by investing in stocks? can i do it? I also got this questions & to my pleasant surprise it turned out to be YES! (BUT WITH APPROPRIATE EFFORTS PUT IN)
Ya I know that this is not the general notion? people always say that stocks are risky don’t invest in them etc( especially in India ) when children gets interest in stocks most parents acts as if there children are going to ruin there life. But i feel they should be happy that there children are saving.
Of-course many people have lost money in stock market but studies shows that in the long run stocks have outperformed other type of investments like bonds commodities etc. TOP 5 REASONS FOR investing in stocks are:
1.Buy owning stocks you get a ownership stake in an existing business so as the business prosperous your stock price will go up; i mean your money works for you unlike the other way around. Fantastic isn’t it!
2. So buying a stock is a ultra low-risk high return method for making MONEY
3.The transaction cost are very less(<1%) and with a PC/laptop in your room you can do it seconds.
4. you have plethora of choices of well around 10,000 companies! & with few brokerage accounts you can buy shares of any publicly traded company situated around the world while sitting in front of your pc! WHAT A LUXURY!
5. On the top of that you dont need much money $1 is enough. So it is a great advantage for students.
Hold on don’t go and dump all your money in stocks that’s how many people loss money ,for making money in the market one needs to know a little about world of investing.Don’t panic as WARREN BUFFETT said to be an intelligent investor one need not have a high IQ what one needs is” SOUND INTELLECTUAL FRAMEWORK &EMOTIONAL ABILITY TO PROTECT IT FROM CORRODING”.