AN INTRODUCTION TO STOCKS
Imagine this: you are a company owner, you get income but you don’t go to work, you just do what you want and the money keeps coming in. This sounds like what most of us dream of, money without the work. However, as the world is run by money, we are required to run after money. People work 8-5 office jobs, struggle to establish their own business, and labor the day away for a job you never dreamed of when you were young. The dream of having money without going to work becomes just a wish, a fleeting fantasy. However, the expansion of the economy now allows for everyone to have a chance to reach that dream through stocks.
Stocks come in many names. Several of these are: equity, shares, assets, etc. but simply put, stocks are the shares in the ownership of a company that represents a claim on its earnings and assets. A large amount of stocks in a company means that your share of the ownership is also larger which means that you also have a larger say in the company’s operation.
As the proliferation of technology gave way to easier communication and networking, the game of stock trading has expanded exponentially to the reach of anyone who has access to the internet. Anyone can basically own stocks now compared to the previous decades where only the rich can play the game.
However, despite the idea that you can now own a company and profit is now available to anyone who wants its, not many know how to truly handle the stocks. A lot of people get information about stock trading through word-of-mouth, stories of how a person allegedly hit gold in stock trading while others tell the tale of sudden bankruptcy. A lot of misinformation goes around because people are either too lazy or too busy to do some proper research. Add this to the fact that most of the neophytes in stock trading have the get-rich-quick mentality that causes them to be reckless and impatient not knowing the risks of this business. Many of them are eaten alive because they were not properly educated.
Understanding stocks is the key to reaching the dream. Because even if you don’t have to go to work and your money works for you, remember that you are responsible for your wealth. You must watch them, understand them, and handle them properly for them to grow. Stocks may be the way to the dream but if you’re careless, the dream will turn into a nightmare.
In the next articles, we’ll be educating you on everything you need to know about stocks: the basics, the types of stocks, the trading process, the price changes, and much more. Any trader who wish to flourish in the financial industry must have a strong foundation of knowledge in order to make informed decisions about investments and assets.
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Principles of Trading: Automating Strategies
POPULAR FOREX DEFINITION
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