Is Buying Stocks A Good Idea?

By Scott M Bradley

Many people wonder whether or not buying stocks is a good idea. Those who do not take part in investing may feel that buying stocks is not a good idea because there is risk to it. Well, this is right; there is risk to buying stocks. When you buy stocks, you are hoping that the price of the stock increases, that way you can sell the stocks for more money. For example, if you buy one share for $20 and that share doubles in price, you make $20 off your investment. Now, if you had 10,000 shares at $20 and it doubled in price, you would make $200,000. Is it any surprise that one of the richest men in the world, Warren Buffet, has been able to make so much money through investing?

However, buying stocks is something that can help you greatly in your life when you do it right. When you are buying stocks without a broker, or you are buying stocks with a discount broker, you can make good money by investing in the stock market.

If you go to the stock market and start investing without doing research, you will only end up losing all of your money. All of the steps to buying stocks include a step for research because it is so incredibly important. When you research stocks, you can determine what stocks will go up and what stocks will go down. You won’t know exactly what stocks will go up or down, but at least you will have a better idea of how stocks will do. When someone asks ‘Is buying stocks suggested in articles smart?’ the only answer that we can give is yes. Various websites have been designed to help give you an indication of how stocks are going to do. These websites do the research and give you the scoop on what is going to happen so that you can begin to make a decision about how to invest.

Does this answer the question of whether or not buying stocks is a good idea. Well, yes buying stocks are a good idea and here are just some of the reasons why.

1.When you spend most of your working life investing, you can make a lot of money. When you have 40 years before retirement, you can invest heavily in your youth because you have more time to make up for falls in the stock market. In the long-run, buying stocks gives higher rewards than other types of investments.

2.When you invest in the stock market, you make money for doing nothing. You work at a job and you make money when you are at the job, but with stocks you make money even when you are sleeping. The stocks go up and down without you doing anything. It is all based on the work of others. When a company does well, you do well. It is possible, on a rapidly increasing stock, to make double or three times what you make a year at your job, without having to do anything but invest.

3.While there are risks to investing, buying stocks is not gambling. People will often ask what is the difference between buying and selling stocks and gambling, and to that we can say that with stocks you do research, while with gambling it is all about luck.

Buying stocks is something that can help you make a lot of money when you do it well. Buying stocks is a good idea when you do your research because you can make a lot of money. Of course, there is the chance you will lose a lot of money on the stock market, but there is just of much of a chance that you will make a lot of money. Fortunes are won and lost on the market on a daily basis.

So, is buying stocks a good idea? If you do your research and put a lot of thought into buying stocks, then yes it is a good idea. If you are picking stocks at random, then it is not a good idea. This is what you need to remember with investing in the stock market.

About the Author: This article was written by Scott Bradley, private equity investor. How Much Money Do You Need To Start Buying Stocks

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