How To Invest In Stocks | Things To Know Before Investing In Stocks

If investing in stocks mentioned anything to anyone, regardless of whether I know them or not, it is likely that 95 percent of them tell me that is the riskiest investment, which is as good as the game and the form of a pair of errors can take anyone into bankruptcy and suicide. Well, bad news on equity investment in television, newspapers and the Internet every day and how it affected many people.

That's why I would like to clarify some things.

First, investing in stocks can be fun and exciting, especially those who have been operating for some time and has achieved substantial benefits. But if you are new and have never changed before, it can confuse and even lead to being deceived by others who only care about themselves doing other people's money.

So what are the actions and why many people speak of them as more disadvantages than advantages? Welll, the actions are basically the assets issued by public companies in building their confidence and increase their value. When you invest in stocks, you become a shareholder in the company 's or partial owner of the company. When the company makes money, make money. Similarly, when the company loses money, loses money. Or when the company folds by circumstances such as Lehmann Brothers unforeseenable "foreclosure 2 years ago, to lose all their investments. This is precisely why many people speak of them as the disadvantages that the media always spread the word around the world when a company closes.

Therefore, before investing in stocks, there are four basic questions you should ask as in:

Is the company registered?

Still, how old is the company?

How stable is the company?

Do you have customer testimonials to prove what you say is true?

It may sound funny and ridiculous, but it is better to ask than investing blindly and feel sorry when things go well for the company. Remember, you are investing your hard-earned savings in the company. Unless you have other diversifications as their backup plans that have been shown in making money, you need to know as much as possible about the company, even if their sound awkward questions.

It is advisable not to put all your eggs in one basket. But it is more wise to know the quality of the basket before putting in eggs.

Let me ask you a question. Want to be an investor who stands out from the rest by being able to profit in good times or bad? Or do you want to be like everyone else who benefits when the company makes money, but lost and not knowing what to do when the company loses money? You decide.

If you invest in stocks, not just be a smart investor. But being a prudent investor, who has researched the questions and do all the necessary tasks, even before investing. And best of all, when things go wrong in the worst case, you have all the measures in place to reduce losses and still make money in the long term.