Is stock investing really difficult? What is the right price to buy stock? Why do stock prices change every day? Is stock investing risky? What would success in stock investing mean? Conclusion
Here I’m trying to make stock investing simple – Step by step a complete guide on how to buy stocks for beginners.
The journey of investing in the stock market is the same as driving a car. As per structure, the car is a complex system but easy to drive. Although everyone must be learning to drive a car before driving on the main road or in traffic.
Once you have learned the car then you focus only on the road, traffic ahead and paramountly where the road leads to you.
Today, You have GPS and you also know how to utilize it so you don’t worry about where the road leads you.
Learning stock investing is simple as learning how to drive a car and how to use GPS to reach your financial goal. Soon you love the journey of stock investment and you will reach your financial goals.
What do you think, Is Stock investing really difficult?
When you start learning how to drive a car, First you have to learn the basics of how the car functions.
Same as investing in the stock market firstly you have to go through the fundamental principles of the stock market so you can use them to your advantage.
A good investor always knows the fundamental of the stock market so he can use them according to the stock market situations for getting more advantages.
Learning or doing something for is first time always feels complicated but if your inner soul sounds like you can do it then.
It is sure you will do it and one day you are successfully working in that area where you feel tough in starting.
What is the right price to buy stock?
This is the most important question for beginners on how to buy stocks at the right price and it is possible only when beginners know the right price to buy stock.
The fair value of a stock depends on its ability to generate profit consistently, and the market prices in the long term always depend on this.
Therefore it always is better to buy a stock at its fair prices and you may buy at a discount or close to the fair prices so you could be on the safer side.
To invest in a stock at the right price, you have to buy the stock at a good discount to its MRP and sell it above its MRP. Because the MRP is the real worth of the stock.
Why do stock prices change every day?
The magic of demand and supply is caused by short-term stock prices fluctuating. The stock price rapidly changes by the demand and supply of that specific stock.
Stock price changes within a second nowadays on the stock market, the price depends on the number of buyers versus the number of sellers.
In the stock market, very few are real investors, most of them are traders and speculators. Traders and speculators buy and sell the stock for different reasons.
They trade in large volumes than investors so they strongly influenced the short-term events along with short-term price changes.
So, it is important to know the fair price of stock and newbies should have to buy the stock at discounted prices.
Is stock investing risky?
When do we learn to drive a car, What do we find? We find it very risky and face tension and anxiety but we do not quite learn because it is one of the necessary skills today.
Driving a car always carries some risks still we learned how to manage it and avoid unnecessary risks.
Investing is a journey to get the experience of decades to know the basics of investing that will be life-enhancing knowledge and skills.
At last, I want to say that without learning everything is risky so first learn about the market, how it functions, basics of the market and it is very important to learn from market experts.
What would success in stock investing mean?
The main thing is, why do we invest money in the stock market?
We want the principal amount safe so that we invest in stocks and get the surplus money from the investment.
The surplus money invests again to meet our financial goals for the future.
The formula behind building wealth is to invest your surplus money to earn a return higher than inflation so that compounds for a number of years so that your money turns to wealth.
Conclusion
Newbie stock investors must be very careful about buying stock, do the proper market research and do proper fundamental and technical analysis of the company.
As new investors, we start with a small principle to buy stock in the stock market and always try to buy the stock at discounted prices of storng companies.
First, get the experience from the market, observe the stock market very sharply then analyze it, if you have confidence enough in any stock then purchae it as per your perfect planning.
Never spend all your money on a single stock, try to take more and more experiences from a part of the money you invest in the stock market, so you will get confident enough.
