Investing in the Stock Market

Here is a screenshot of my stock portfolio after i started investing in the stock market 2 months ago, i am using cost averaging investing monthly to solid companies following what i am learning from Truly Rich Club.

What are stocks?

Stocks are shares of ownership in a corporation. The stock market is a place where stocks are bought and sold. Once you buy or invest into a stock you now become part owner or a shareholder of that particular corporation.

How to make money in stocks?

As a Shareholder, you can now participate in the company's growth and success through stock Price Appreciation and by earnings Dividends.

Capital or price appreciation is an increase in the market price of your stock over time brought about by an increase in its potential value and the demand to buy its shares. The faster a company can grow, the faster its price can appreciate.

Profitable corporations can also issue dividends, whether in cash or in additional shares of stock as a means for shareholders to share in their distributed profits.

Why Invest in the Stock Market?

History has proven that investing in quality stocks can provide greater returns than most investment instruments. This offers you the best chance in achieving your financial goals and gives you the ability to later enjoy the benefits of your money working for you.

The track record of the stock market also shows that a good basket of stocks climb more often than decline - reducing risk over the long-term.

There are 4 Golden Rules in Investing

Invest EARLY

Invest early to take advantage of compounding over a greater period of time.

Invest REGULARLY

Now instead of investing just once, every month I regularly add the same amount into my investment.

Invest LONG TERM

Long term investing solves the problem of short-term volatility (choppiness in price). On occasion some issues may come up that may cause prices to swing up and down whether economic, political or natural events.

Invest using DIVERSIFICATION

The management of risk should always come hand-in-hand with your choice of investment. One way of containing risk is through diversifying or by spreading investments around and away from one single asset class.

As the saying goes, "Do not put all your eggs in one basket."

Moreover try to allocate your capital evenly to a number of stocks in different industries or sectors so as not to put too much risk in one area; have a good balance in your investments.

To Your Success!!!