What are stocks all about? Why they are often seen as a “complicated” investment? Is it really complicated to buy and sell stocks? For sure, investing in stocks is not as simple as buying a fixed deposit. Why? Because fixed deposits are fixed return investments, and stocks do not give fixed returns. Their returns could be high, or might even be negative (loss). Why this unpredictability? Because stocks price are volatile, and majority do not know who to deal with this volatility…
These days buying shares is done most through online trading platforms. Online share trading is both easy and cost effective. Moreover it is also convenient for small investors. These days buying and selling stocks has become as easy as sending and receiving emails. But there are few important skills that must be learnt to trade stocks profitable. In this article we will not only present to you the “process of stock purchase“, but also the necessary skill which makes stock investing profitable for its investors.
It’s the price volatility that makes stock investing so risky. But why does stock price fluctuate at all? There can be several small and big reasons for the price volatility. But the main thing that triggers all price volatility is demand and supply of stocks. When a stock’s demand is low (more sellers than buyers), its price will fall. When a stock’s demand is high (less sellers than buyers), its price will rise. So basically, it is the change in demand that triggers all stock price fluctuations.
How to evaluate a stock price? Is the process of evaluation easy or difficult? How long does it take to evaluate stocks? Is it really possible to arrive at some meaningful conclusion upon stock evaluation? These are few common queries that we have, related to stock analysis. Let me give you a quick answer first. Stock evaluation is important before buying any stock. This step is unavoidable.
Copyright © Getmoneyrich.com 2008-2020