Stocks are one way to invest your money and multiply your wealth. However, to succeed in investing, you must start by understanding how to invest your money properly. Read many books, and understand all fundamental technical and analytical analyzes. The following are reasons to consider the investment with five percent stocks.
– Provide the highest profit potential
You must be wondering. There are so many investment media popping up, why are there still so many people who choose to invest in stocks? The reason is quite simple because the stock provides the highest profit potential compared to other media. If you are young, have an adventurous spirit, have a high desire to learn, you can try to fold up extra money into the capital market. Somehow, you also have to understand that this high profit is also accompanied by high risk.
– Stay profitable even when stock prices go down
Why when it comes down can also generate profits?
The term short-selling or also known as selling blank is a term for the sale of shares by borrowing. When you do short selling, you can sell the stock at a high price and buy it back at a low price
Simply put, you have no stock, but you borrow a stock from security, and sell it for a high price when the price goes down, you buy it back and return your loan share to the securities.
– You can invest with minimal capital
Unlike other investments that require large capital, to invest in the stock market, you only need a very minimal capital. Some securities even allow you to open an account with only minimal capital according to your ability. Stocks are one of the best investment mediums that can double your wealth quickly. But stocks are also one of the riskiest investment mediums. The risk can be minimized with the knowledge to analyze the movement of the capital market.
One thing to know is to succeed in investing in stocks, you have to equip yourself with various knowledge of the capital markets, as well as sufficient experience in the capital market. If you are still inexperienced, you should start with little capital, and only use your cold money to invest.