What you have learnt from Stock Market?
One
of my friend told me, he dare not invest in stock market, because he
feel that market is unstable at the moment. Some day up and follow
by few days down, he was unable to sleep well when he involved in
Stock Market last time.
Why
we invest in stock market? If a company's stock selling at one dollar
today, tomorrow and one year later, what's the fun to invest in stock
market? We know one thing, inflation always happen, today's asset
worth 1 million, it can become 1.2 million one year latter. Yes, we
want Capital Gain! This is true only for investment grade stocks! We
need market up and down to make money.
The
second thing I like to invest in stock market is because of
liquidity. You can sell the stock you buy and take the cash within 3
working days. Hence, you need to select the right stock to invest,
avoid those stock with low liquidity, unless you are very rich and
willing to wait for years.
Stocks
do pay dividend, if you know how to “save” high dividend stocks.
We particularly like the stocks which pay dividend with the increase
dividend rate every year. Many still don't know they can sleep well
if choose this kind of stocks.
Try
to make money when you buy. Buy on the day when market crash! Cheap
sales are every where. Find the value stock, buy the value of 1
dollar with 50 cents, then you know at the time of buying, you had
earn 50%.
There's
no secret of creating wealth in stock market. All you need to do is
find the investment grade stock, buy when market go down. Make sure
the stock pay dividend of more than bank's FD rate. Invest in Stock
market is high risk only in the case of you do not know what you are
doing!
.
GOOD SAID..SIMPLE PIECE OF WISDOM YET SO WELL WRITTEN IN THIS POST
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