The topic of investing is no doubt a prominent one. Now, more than ever before, people want to better understand this subject. They want to know how to approach it; how much money is involved, and what is the likelihood of success. I am on this bandwagon as well. My wife and I would like to invest for the future, but the reality of it all can be a bit stressful. Sure, we all want to win big, but no one wants to lose big.
This is why investing in a business requires knowledge and intuition. For the pros it may be a simple routine, but for the rest of us it's scary. How can we know where to start? Truth be told, I know a little more about investing in a business than I used to. A few years ago I couldn't even have defined the word "stock." However, these days I look at the stock market in a new light.
It's a machine. One that can suck you dry or make you a fortune. It consists of many businesses, and you have to know which ones are up to snuff. Which ones are doing well right now? Which ones can turn a profit in a short amount of time? These are queries to consider. In short, investing in a business is a gamble. You purchase some shares, whether it's 10 or 100, and then you hope they increase in value. If they do, this means it's time to sell and make big profit. On the other hand, if they plummet, then you make be in a pickle. You can proceed with the selling process and lose some capital, or you can hold onto your stocks and hope they go back up. Like I mentioned before, this is a gamble.
I often wonder how the pros do it. What do they see on a day to day basis? Are they buying and selling completely off of gut instinct, or are they going with past success rates? Either way, the wrong choice could mean millions lost. Yikes, that sounds a bit too stressful for my blood. This is why I will stick with the small time, and start investing in a business or two. I have no interest in getting in a hole, and that's why I won't invest beyond my means. Dabble a little first. Get the hang of it and refrain from investing what you don't have.
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