Now a days, everyone rushes into the stock market because it is considered a money making machine. In many cases, it can be true, you could make money, but for many others, might be a total nightmare. Stocks are volatile, you could make money and or you could lose money. We are mentioning both sides to make sure you understand how the stock market works and to not get disappointed when you lose money; because that is how stock market works. These are the reasons why we encourage you to invest in stock market.
- Stocks historically are going up: When you invest in a stock, you actually invest in a company. When the fundamentals are strong, most cases, the stock of that company keeps climbing up. Look at Apple (AAPL). One year ago, the apple stock was at $170 per share, and now they are around $320 per share. If you are a long and investing for several years, you probably pocket more profit. Five years ago, Amazon Stock (AMZN) was around $420 per share, now the stock is traded at around $2,500 per share.
- You will only regret if you do not invest: You do not have to be rich to invest in stock market. You can start with a hundred dollar. Once you opened a position in stocks, you can buy more shares as you save. This way, the little money you put aside in the stock market can grow and could have high return. Have your heard of the Netflix (NFLX) stock dilemma? If you had invested S1,000 in 2007 in Netflix company, now it would have been worth 110,000. Isn’t that a big regret?
- Investing in stock market is easy : You cannot just wake up the next morning and buy shares of several companies if you know nothing about stock market. However, you do not need any formal education to invest in stock market. There are two types of investors in stock market. The big players, those who are like Chartered Market Technicians with two to three years of education, and second, rookie investors who have learned to read charts and stocks direction by trading and experiencing how the market works.
- If you lose, you learn to not lose again, if you win, you will learn to win again: Investing in stock market is like an addiction for most people. Once you start investing, it will turn to a hobby and part of your life. You will make money in many stocks and you might lose in many others, but overall, you will learn to not make the same mistakes and over time your wins outnumber your loses. Remember that almost all rookie investors make mistakes and lose money at start for the sake of being able to better understand the market. As you stay in the market, there will always be rookies coming in and giving you chances to make money. The later you get in, the more chances you will miss.
- Earn higher returns and keep your stocks: Remember that many stocks have dividends. A dividend is a distribution of profits by a company to its shareholders. Many stocks have quarterly and monthly dividends. As far as you have shares of those companies, you will be making money. You still keep the same number of shares you have purchased, and receive additional shares as dividend or cash to your account depending on which one you would prefer.
- And lastly, Invest, because it has never been this good: Just over a year ago, if you had to buy and sell shares, you had to pay a fee for the broker. A minimum fee of 6.99 was charged for each transaction. If you had to buy a single share of Ford Company (F) for 5 dollar you had to pay 6.99 as fee for the brokerage and when you had to sell the stock, you had to pay the same amount of fee to the brokerage. For that reason, it was very difficult for new traders to buy and sell stocks with a few hundred dollars. In most cases, the brokerages would keep all the profits. Now, there is no fee and you can buy and sell even a single share of any company and pocket the profit without any middle man.