Saturday, January 31, 2015

Why Should I Invest?

One of the most compelling reasons for you to invest is not having to work the entire life. There are two ways you can earn: either by earning or having your assets work for you. If you just keep your money at home, you will never have more than what you have saved but if the same money is invested in stock market, it might multiply to even thousandths. Yes, stock market is associated with market risk, but has its own proper advantages. Why not generate more money through money itself if you can? Why just neglect the opportunities given by the financial world?

The main question which most of all must be having is, what does investing on stock market refer to? Why do I invest on stocks when I can easily gain interest by opening a savings account in a back or investing on a land or any other aspect for that matter. A very easy solution to the question being worked on a lot of minds is, "history says investment on shares has the highest return".

Now, how does investing on stocks work? How can you invest on stocks, what is the process for investing? Investing is one way that people put their money to work to make more money. Investing in the stock market requires a sound stock market investing strategy. The focus of stock investing is on the return. Stock market investing can be either conservative or aggressive depending on what your prefer to do. The best stock market investing advice is to always weight the expected return against the risks that may be involved. However, before you get started you should know the basics of stock market investing.

We have great history which states that investment on stock market has the highest rate of long term return. There are a lot of risks associated with it. Investment on smaller companies in usually riskier, and investment in only one company is also very risky. You should spread your risk by diversifying your investment in eclectic companies. If you are well diversified and invest long term, say for like more than 5 years then you can minimize risk and have nice returns.

Warren Buffet is the king of shares. He is one of the top 5 billionaires in the world. He is an investor, a business man and a philanthropist. Started to trade at a very tender age that is 11, today even the sky does not set the limit for him. Not a lot of people know that Buffet's 99% of the wealth is earned after his 50th birthday and this is because of his investment in the stock market. He understands the trade cycles and keeps patient which eventually gains him nice returns. You definitely need to know the basics of stock market to invest in it, because if you do not know its basics, then its a total gamble. You might double or even triple your amount once or twice but it will not stay with you forever since that will be just your luck favoring you. But if you know the basics, you invest discerning the pros and cons and keep patient accordingly and know by when will you money actually come to you.

All I want to conclude through all this is why, why not invest in the stock market and generate money? Money leads to money, and this money will definitely assist you when you get old, when you cannot work. At that time, the money generated by your once upon a time investment will be your shield.