So today since I am a lifeguard at a very uncrowded pool, I have decided to look up what the stock market really is. I am really excited to share what I have found with you! Also if you have anything to add please do so in the comments, I'm so eager to learn about this! IMG_4167.JPG
This is my view from where I am sitting, enjoy.
Anyhow I have found out that by investing money, you can make more money than you already had. Of course there is a catch! Your money may increase or decrease in value so you need to know the best time to invest.
Okay let's start from the beginning: in order to be able to invest, one must have money left aside which they will not neee for 3-5 years coming up.
Then you must decide what type of investor you will be:
Some are long term investments, these last from 5+ then there are the ones in the middle which are 1-2 years, finally there are the short term ones that are just a number of months.
Long term investors are here to make profit over time, and they are not worried if their profit goes up or down throughout this time because they have chosen the company to get shares from wisely. Then those who are more impulsive will throw around money and try to make profit in small chunks, withdrawing their investment as soon as it starts making money and or also selling their stocks as quickly as possible to lose the least amount of money if their investment is losing value.
The best companies to invest in are those who haw good business plans and have success in their future visible. This will give the investor a better return than buying shares of a company that is already thriving.
What do you recommend is the best way to start my stock adventure?
