The stock market has always been a rather exotic aspect of finance for many. Most people will make do with their monthly income from a job and, at most, calculate their yearly taxes. Considering that that doesn’t require almost any financial literacy at all – it is no wonder so few people are “into” stocks.
The tides are, however, turning. With the advent of the internet and mass media, we can now follow what is happening on the financial market and even be a part of it without having to live near a stock exchange, or even in the same country. The one thing that remains is, of course, the starting capital needed to invest and there is a way to obtain it even without relying on your monthly paycheck.
The stock market seems to be going up steadily, even when many businesses are closing. This is caused by a whole series of events, but the most important factor is that people trust the stock market and are willing to invest in it actively. For many that can think ahead and do the numbers, this is actually a lot more beneficial and exciting than finding a regular 9 – 5 job, even if there is a risk involved.
Considering some people may get their starting funds through a personal loan, it is advisable to think ahead on how any investment would be able to cover the interest rate in due time. Personal loans are rather easy to get but come with relatively high-interest rates so they can pose a problem in the long run. Seeing how opening a small business may be very risky in recent years, not to mention the return of investment rate is usually too slow for most banks, opting to invest in stocks instead may be a great alternative.
To make it work you have to know what you are doing, and in the stock market information is everything. Most beginner investors rely on newsletters to get the freshest news and lead from the experts so you may consider getting familiar with them also. However, Dr Steve Sjuggerud’s True Wealth system reviewed gives a breakdown of one of the more popular ones that focus on long-term profit and less risk-taking. Guides like those can give you a good foundation to build your stock portfolio and be at ease that, if you are patient, the profits will only increase in time.
Another popular approach, sought by most people new to the market, is a high-profit, but high-risk investment strategy. Even the big shots are up for it if given the opportunity, to buy low and sell high in the shortest amount of time possible, though that is only possible if you are actively following what is happening at that moment and can react instantaneously, something usually only manageable by large financial companies.
Finding your way through the stock market is a difficult job, and if there were a secret formula to it we would have already figured it out. So instead of trying to cash in on the “next big thing” it is maybe better to make and follow a long-term strategy that would make you rich too, just over a longer period.
You have to take into consideration the return of investment (ROI) rate for anything you are considering buying as it is one of the main factors that govern how “profitable” a stock is. This should be viewed over a longer period, and if not for that specific stock then for that particular industry or resource. If, for example, the rate is very low on a shorter scale, say a few months, some people will be taken back by it, but keeping hold of stocks that will steadily rise in value for years means you can plan a stable financial future.
So, going after well-known companies that have a major back-up is always a sure thing. Technological giants such as Google or Apple, or strategic resources such as oil or semiconductors, where there are few, if any, major oscillations and where the stocks have been increasing in value for decades now. Again, this may not be the deal-breaker that a newspaper headline would announce, but it is one of the surest ways to invest money from a personal loan.
Living with the risk of losing all of your invested assets overnight, and then not being able to return a loan, is not for the faint-hearted. But those who would try to swim with the sharks, and above all else know how to swim and get out of the water on time – they are in for a treat as this can be a very profitable game for them.