Wednesday, May 11, 2011
Why the Majority Fail at Stock Investing
By A. Hamid Adeniyi Otule
The Aims and Objectives of this writing are to expose to you our esteemed readers the majour reasons why many so called investors fail at stock investing, tested and confirmed ways to invest in stocks and share.
As we all know that Money is integral to our daily lives. Everybody needs money to take care of our daily activities. A lot of people invest their hard earned money in stocks to enjoy the capital gain on their money while others are happy with a steady income. Some never knew much about stock investment but it is universal facts that stock investing tend to be risky. I ask this question, why should we invest our money in stocks? The answer for this question is not far-fetched. Stock market game has the potential to multiply your money quickly and otherwise. It could give you instant money to improve your lifestyle. But it is also true that majority fail at stock investing.
The returns on stocks certainly attract lots of people but majority of them and lose their hard earned income which they invested in the stocks. Stock investing is not the child's play that anyone could play easily. It is not a hobby but rather its serious businesses that need a lot of strategies and knowledge. People often fail at stock markets because they forget to input their valuable efforts, or in other words they forget to work hard. Such amateurs always invest in stocks with a view to earn some quick bucks but due to lack of hard work they lose their money.
Also, before jumping into stock investing it is very important for the investors to acquire the basic knowledge of investing in stocks and rules, skills and strategies required.
For any investor his or her real cash is the rules to play stock market game. If you don't have enough cash, you cannot invest which means you tend to make little or nothing. And if you don't invest, you are out of business. The second most crucial factor that majority of investors lack and hence fail at stock investing is the ability to research and follow up. Most of the investors keen on gathering knowledge about star performers (stocks). They make plans to buy next stocks but forget to follow up how the stock that they already own is performing in the market. It is very important that you learn taking care of your car before going to buy a new one. The same goes for stocks. You must spend time to research the performance of your stock before you actually buy a new one. Stock investing is a big game and therefore you need to research a lot before investing your money in it.
Furthermore, Majority of people fail in stock investing since they don't realize the importance of their money working for them. They don't know what they are doing; they don’t find it necessary to hire professional experts to help them invest in right stocks. Among other mistakes that people commit when it comes to stock investing is that stock market investing is not only about buying at low and selling at high. It is much-much more than that. Investing money blindly is not the right move that need to be avoided. It is very important that you assess the need of the money. Analyze your investment goal and then select the right investment plan. For e.g. if your goal is to buy a car then research well and choose a stock that has the potential to give you short term investment benefits.
Remember that the right knowledge and practice is the perfect combination that can help you stand apart from the majority who fail at stock investing.
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I wish you best of luck.