Why Invest in Stock

FinanceStocks, Bond & Forex

  • Author Frank Vanderlugt
  • Published January 8, 2008
  • Word count 453

Many people today are watching the stock market go up and down on a regular basis. They hear the terms about the ‘bull’ and ‘bear’ on the evening news and most people know that this means that the market is very good or very bad. With all of the speculation within the stock market why would anyone want to invest in stocks?Today the stock market in the US is trading at over 13,000 and it is at an incredibility high rate and it seems to be staying fairly steady. Many people wonder why they should invest in the stock market when it is so high and the chances are that the numbers will go down. Overall the stock market has been fairly consistent by providing fairly good returns for most investors. There are, of course, people who lose money when they take risky chances with their stock portfolio.So, why invest in the stock market? If you work with a reputable stock broker, he can provide you with an overview of the market. He will work with you to determine how comfortable you are with the risks that are involved when buying stocks. The two of you will come up with a plan that involves the purchase of certain stocks that have been consistent throughout the years. Your purchase price for some basic stocks might seem high, especially when you see what these particular stocks were worth a few years ago. But, if you are serious about investing, you have to start somewhere and it is with some of these basic stocks that you can begin a sound foundation on which to build.Some of your friends and relatives might just ask you the question ‘why did you invest in the stock market’? Yes, it is up right now, but it will go down again. This is definitely a true statement because the stock market does fluctuate—sometimes very dramatically.Remember that it takes time to make money in the stock market—there are very few overnight successes. You might hear about someone who made a million dollars, but chances are this did not happen overnight. There are some very lucky people out there who for some reason seem to have the Midas touch, but that is not the norm.If you are unsure about why you should invest in the stock market, make an appointment with a reputable stock broker and talk to them about your interest and concerns. They will take the time to help you understand what is involved and what the risks are. Knowing all of this information up-front will help you make an informed decision when it comes to investing your hard earned money in the stock market.

Frank j Vanderlugt owns and operates http://www.lazytrader.com Day Trading

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Dr. Artfredo C. Abella - Baguio City, Philippine
Dr. Artfredo C. Abella - Baguio City, Philippine · 15 years ago
You invest in stocks so that it will make you a part owner of a business by buying their shares. If your interest is to earn money in stocks you must eliminate fear. During times of economic downturns when the stocks are bearish buy as many stocks as you can since their par value are low. When the market makes correction and it becomes bullish in other words the par value gets higher sell and dispose your stocks and buy real states or fixed assets. When the market goes dim again it's time to buy since it goes to bear periods again then wait when it becomes bullish again and when the par value rises sell again your stocks and purchase again properties like lands, buildings or apartments that will provide you bigger and higher income. This is the only way to earn money in the stock markets and one of the reasons why you invest in stock.