Business, Money

Investing in stock market

I am not an expert in stock market but I will just share what I know. I recommend everyone who has extra money to invest in stock market. It is because the chance to earn money is higher that to just save it in a bank. But I would not say that we should not deposit a money on bank but instead put a money on both.

Many people are afraid to enter the stock market because they think that it is just for business people or those who has a lot of money. But actually you can enter the stock market with no big amount of money. There are online broker nowadays that will let you start with just a small amount.

Is there a risk in investing in stock market? Yes there is and it depends on your knowledge and skills. Choosing a stock to buy is a big factor on how you will lose or gain money. You should pick the right stock and buy in proper timing. That is why you should study first and read news about the company that you are going to buy a stock with.

How to lessen the risk? To lessen the risk of losing money, you should buy stock/share from a big company that you think will stay for the next 50 years. You should pick the one which is already stable and has a continuing success. That is mostly suitable if you are investing for a long-term goal, meaning that you will keep the stock for many years and let it increase it’s value overtime.

There is also another way of investing in stock market which is the stock or day trading. This is more of a short-term plan. The aim is not to stick on one stock for a long time, but to sell it once it already gain profit. The buying and selling of this strategy is often. This strategy requires more time and monitoring, which also gives higher risk, but with a higher possible profit.

So those are some ideas about investing in stock market. For my preference, I stick on buying big company stocks and leave it for few years or more. The profit is higher that what you will earn from the money you deposited on the bank.

 

 

 

 

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