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why do people invest in the stock market

the stock market presents opportunities to earn passive income through safer blue-chip companies like Microsoft or Apple. People who don't have much time to research and execute trades benefit from to earn investment income. One strategy is to buy shares in a large, safe company, with a plan to hold them for an extended time before selling. Another is to invest in stocks that give dividends to shareholders. Dividends are periodic distributions of a company's excess cash. For an investor, these stocks allow an opportunity to generate income while holding shares. As long as the company remains strong, the shareholder continues to earn.

The market has endured its fair share of ups and downs over the years so this might seem like an oddly inappropriate time to suggest investing in stocks but, in fact, the benefits haven t changed. What has changedвor needs to changeвis the investing publicвs perception of the stock market and its associated risks. Consider these five good reasons why stocks are still a viable investment and why you should continue to use them or invest for the first time. The stock market doesnвt care about you or your plans. It doesnвt have any agenda, and it could care less about yours. Why is this a good thing? Because despite what you might have heard on late-night infomercials or read in an unsolicited e-mail, there are no magic formulas for investing success.

The rich and famous don t have any well-guarded secrets up their sleeves, and there are no secret passwords or handshakes. In truth, there s nothing standing between you and В except hard work and understanding the fundamentals. Although institutional investors might have a decided advantageвthey have more resources and more full-time professionalsвyou still have access to all the same information they do. You can lay your hands on the same data that makes them so successful. You just have to know what to do with it.

It might feel at times like the stock market is targeting you for disaster, but it s reallyВ not. If you re caught on the bad side of the risk equationвthe higher the risk, the greater potential reward, and the higher the chance for failureвthatвs just the reality of investing. The stock market is most dangerous when investors forget the risk-reward rule and expose their holdings to. This is especially the case when they don t have a full understanding of potential losses. Investing in the stock market should be done with your eyes wide open. When you re blinded by a huge potential payoff or terrified by the thought of a loss, you won t make good decisions.

Blame yourself, but donвt blame the stock market. So am I telling you to rush out right now and invest in the stock market? Absolutely not. I m telling you to do your homework. Be realistic and use the information that s available to you to your best advantage. Understand the marketвbuy and sell on paper for a while as sort of a training session to see how you fare before you plunge in with both feet. And know that while the stock market can be an unforgiving mistress, investing can also be a lucrative endeavor. В Other things to clarify for yourself are whether you re and knowing the various.

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