Investing is making your money work for you by getting your money to generate more money. Investing in stocks has consistently proven to be one of the most profitable forms of investment available. Stocks are but one of many possible ways to invest your hard-earned money. Why choose stocks instead of other options, such as bonds, rare coins, or antique sports cars? Quite simply, the reason that savvy investors invest in stocks is that they provide the highest potential returns
- Immediate Buy/Sell so you can sell part of your investment any time.
- Very low transaction cost.
- The freedom to work at your own place, at your pace in your own time.
- Easy monitoring — log in to the market from anywhere in the world.
- Being able to maximise returns whilst spreading your risk.
- A predictable form of investment if you know what you’re doing.
- Putting you in control and freeing you of fund management fees.
- Considerable tax advantages.
Things to watch out for:
- The market can be a volatile place.
- You must acquire knowledge of what you are doing.
- You must monitor your investments.
- You must learn the discipline to enter and exit the market on entry and exit signals.
Can Ordinary People Profit from the Stock Market?
Many people say things like “I’d love to get into the stock market” or “If I had more money, I’d invest in stocks”. Many people also believe that to make a profit from the stock market you either need to be rich already, be a full-time investment trader or be a financial whiz.
Understanding The Stock Market
The stock market is where the shares in companies are bought and sold, providing companies options to access capital, and investors opportunities to own a share of the company and enjoy potential gains from the company’s future performance.
The stock market offers people the ability to generate a separate income stream apart from their daily jobs, or income streams which are superior to those from traditional savings deposits. But before you even think about buying and selling shares, you must know the fundamentals of the stock market and of trading.
First time investors can become confused because of the terminology that is used to describe various market functions. These don’t take long to learn. Incidentally, one common confusion is over the terms ‘stocks’ and ‘shares’. Actually, they both mean the same thing and can be used interchangeably
Reference :- BursaMalaysia