Up until now, I've always been of the impression that the stock market belonged to those who were rich & had alot of money to invest. That impression changed a couple of weeks back when I saw a video on YouTube. The video was about a guy who was really broke but knowledgeable enough to invest what ever funds he could generate into the stock market, with time his luck shined & he was able to accumulate good amount of wealth.
I found out anyone can invest in the stock market & you don't need to rich to do so. You can start with little capital.
I also got to understand there were 2 major elements that influenced that man's success though. And they are: Information & Mindset.
Information is a very important key to success. You can only act on what you know. That is why I've been ignorant towards investing in stocks because I wasn't informed.
Like if you weren't informed about Hive, you wouldn't be here.
Mindset comes next, It is also a very important factor because you could have the right information but without the right mindset you won't be able to act right on it. The guy from the YouTube video understood he needed to change his mindset when he learned about stock. He decided instead of buying a new play station or a new apple phone, he would buy some shares of apple stock instead.
He understood ownership. That everyone that's wealthy own something. So instead of owning a depreciating asset it's better to own part of these companies that can generate you wealth over long term.
Since you've got at least 1% of that company inside your portfolio then that company is working for you
For those wondering what are stocks? Here's a brief explanation:
What's A Stock?
According to Investopedia
A stock (also known as equity) is a security that represents the ownership of a fraction of a corporation. This entitles the owner of the stock to a proportion of the corporation's assets and profits equal to how much stock they own. Units of stock are called "shares."
In other words, a stock is a share of ownership in a company.
The stock market is simply where the buying & selling of stocks occur.
Investing in stock is just like investing in any other financial market. You buy the assets at lower price & sell at a higher price.
So why do companies issue stocks?
Simply to raise money for their business.
They're giving out share of their equity in other to get money from the general public in an IPO( Initial Public offering).
It's just like crowd funding for their business.
This can he used to create a new product line, research & development. It could be used to invest in the growth of their company, & also for paying of debts.
So why invest in stocks?
This is because it has been & remains one of the best tools to grow wealth with time in human history.
Savers are losers. As alot of us who are financial inclined have come to know, saving money isn't the best way to go. Rather investing & letting the money work for you is.
Lastly, you don't have to be a genius to invest in the stock market & you don't have to be super rich too. These are the 2 main misconceptions I've been having that has made me shy away from researching & investing in stocks. But now I know better.
Disclaimer!
There's a chance that your expected outcome will differ from the final outcome and that is what is called Risk.
Risk is what investors are compensated for & this is very much present in the stock market
So I urge you, if you haven't given a thought into investing in stock, look into it. Do your research & add some company shares to you portfolio.
Please do well to share you thoughts on the stock market in the comment section.
Best regards.