Investing In The Stockmarket


by Margaret Ntifo - Date: 2006-12-19 - Word Count: 542 Share This!

The term Stockmarket is a concept for the mechanism that enables the buying and selling (trading) of the shares and stocks of publicly held companies, other securities and derivatives. The stocks and shares of these companies are listed on the stock exchanges, which are entities (either mutual organizations or corporations) specialized in the business of bringing buyers and sellers of stocks and securities together.

Most modern day trading, as opposed to the open-and-cry system of the past is now done via electronic exchanges where the buying and selling occurs through on-line real-time matching of orders placed by buyers and sellers.

There are many different ways for investing in the Stockmarket, including income or capital growth, technical analysis or charting. Better still there are strategies that do not require complicated charts. All you need is a ruler and pencil, and the right publication to select high-performing companies. Something a seven year-old can be taught to do. If you look well enough, you are sure to find a method that suits your personal needs and goals.

You can go for a hands-on or a hands-off approach that can take anything from an hour per week, through an hour per day to an hour per year. You can go for a highly risky strategy to a medium to low risk strategy. Consider investing for the long term instead of short term.

A lot of people are afraid to put their money in the Stockmarket because they are highly concerned about risk. What they forget is: Risk is a factor of life, and risk can be managed and highly reduced.

Most people tend to seek the advice of financial advisors without realising that financial advisors mostly earn commissions on recommending and selling specific investments. It goes without saying that they will be more interested in selling investments that will ultimately make them more money.

Hence, it is not the smartest move to let someone else invest your hard-earned money for you, especially when you realise that learning about investments is not exactly rocket science. Ask yourself this question: Who is most likely going to look after your money better, you or someone else?

Further more, most of these advisors are not wealthy individuals themselves neither are they successful investors. So it is very much the case of 'the blind leading the blind'. In many cases, the only difference between you and the financial advisor is just a licence to advise on investments, sadly without the need to be investors themselves. As useful as the licence might be to financial advisors, you will be unlikely to find a millionaire investor with a licence, or a financially independent financial advisor.

What you want is to learn about investing from people who have a success record of investments themselves. People who can teach you from their personal real life experiences! People who can teach YOU to fish, and not fish for you. Theory is great, but what will make you rich is real-life application.

Learning to invest in the Stockmarket might well be the smartest move you ever made in terms of managing your money better to ensure that it is working for you. Working harder will not make you wealthy! Making more money will not make you wealthy! Investing your surplus money is the key to wealth.


Related Tags: money, wealth, finance, mutual funds, investing in the stockmarket

About the Author

Wealth and prosperity mentor Margaret Ntifo specialises in empowering women take control of their financial destiny by creating diversified investment portfolios …easily, and effortlessly.

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