Will the Stock Market Return To It's Glory Days
The Financial Stock Market
The financial stock market is the technical term which is used to describe the market where companies are able to list, and investors are able to choose where they put their money and how much of it they will allocate to a particular stock.
The financial stock market is driven by capitalism which relies on that ageless incentive that is profit. This incentive helps companies to grow and encourages investors to take risks and trust that a company will return dividends in the future. Almost every country in the world which has a structured financial system will have a financial stock market. Without a financial stock market, companies are unable to achieve the growth potential that they have.
This is because they will only have access to the surplus funds they can generate in day to day business and do not have the luxury of accessing investor money which they can choose to do with it what they want. Before we entered a period of intense globalization, the financial stock market of each individual country was contained to investors within that particular country however we now live in a globalized world.
The financial stock market of a country can now be accessed by investors around the world.
Money can flow across this flat world because of advancements in technology, information, and regulation. For your information, it was Tom Friedman who coined the phrase 'flat world' which has since become widely referenced and is used to describe all facets of globalization.
His book, the world is flat, was a bestseller and if you want to understand how globalization has impacted the financial stock market, it is definitely worth reading and may give you the tools you need to become a successful investor.
Rules to Consider in Generating a Strong Stock Market Return
Generating a higher stock market return is ultimately the most important thing for an investor. By investing in the stock market, you are choosing to put your money into stocks rather than spending it on yourself or your loved ones.
This represents an opportunity cost which you can only justify if the stock market return is higher than the cost of not spending the money today. Strong returns can be achieved by following a few simple rules. The first one is to know how much you are willing to lose if your investments do not work out the way you had originally predicted. The second rule is - understanding the particular stock you intend to invest in.
It is recommended that you begin reading financial newspapers and understanding the key concepts behind the stock market. The third rule is making sure you are well informed of the daily stock market movements. This is crucial as a stock may increase or decrease by a large amount within the space of a few hours and if you are not aware of this you stand to lose a lot of your hard earned money.
The fourth rule is knowing when to sell your stocks. It can be tempting to hold onto your stocks as the market performs strongly because you are unable to predict the impending recession which is likely to follow any sustained boom. There is a famous rule developed by a famous investor which was to sell your stocks when everyone is buying and buy your stocks when everyone is selling.
This advice is worth remembering and if you follow the simple rules outlined above you have the potential to be a great investor and generate a high stock market return without taking on unnecessary risk.
The Money Stock Market
The money stock market is a safer option for investors that do not have the time to follow the daily fluctuations in individual share price movements. When you invest in the money stock market, you are choosing to put your money in the hands of a whole country rather than one particular company. This requires less research and can be carried out by those investors who are inexperienced or unsure where they should put their money.
If you are at a loss on how to choose a country, and their money stock market, there is an interesting technique which was developed by a famous investor A.D Fitzgerald. The story goes that A.D Fitzgerald stuck a map of the world on a wall and asked the investor to throw a dart at it. He then invested all of the client's money into the money stock market of the country where the dart came to lodge.
This story illustrates the risks which go with investing in anything but if you desire returns which are generally more secure than a stock market return, then the money stock market may be your thing. It is still wise to remember the fundamental rules of investing such as knowing your stock and keeping control of it by staying informed and understanding your risk appetite.
As with gambling, it is important to only invest money you can afford to lose especially if there are other people relying on you to support them.
The financial stock market is the technical term which is used to describe the market where companies are able to list, and investors are able to choose where they put their money and how much of it they will allocate to a particular stock.
The financial stock market is driven by capitalism which relies on that ageless incentive that is profit. This incentive helps companies to grow and encourages investors to take risks and trust that a company will return dividends in the future. Almost every country in the world which has a structured financial system will have a financial stock market. Without a financial stock market, companies are unable to achieve the growth potential that they have.
This is because they will only have access to the surplus funds they can generate in day to day business and do not have the luxury of accessing investor money which they can choose to do with it what they want. Before we entered a period of intense globalization, the financial stock market of each individual country was contained to investors within that particular country however we now live in a globalized world.
The financial stock market of a country can now be accessed by investors around the world.
Money can flow across this flat world because of advancements in technology, information, and regulation. For your information, it was Tom Friedman who coined the phrase 'flat world' which has since become widely referenced and is used to describe all facets of globalization.
His book, the world is flat, was a bestseller and if you want to understand how globalization has impacted the financial stock market, it is definitely worth reading and may give you the tools you need to become a successful investor.
Rules to Consider in Generating a Strong Stock Market Return
Generating a higher stock market return is ultimately the most important thing for an investor. By investing in the stock market, you are choosing to put your money into stocks rather than spending it on yourself or your loved ones.
This represents an opportunity cost which you can only justify if the stock market return is higher than the cost of not spending the money today. Strong returns can be achieved by following a few simple rules. The first one is to know how much you are willing to lose if your investments do not work out the way you had originally predicted. The second rule is - understanding the particular stock you intend to invest in.
It is recommended that you begin reading financial newspapers and understanding the key concepts behind the stock market. The third rule is making sure you are well informed of the daily stock market movements. This is crucial as a stock may increase or decrease by a large amount within the space of a few hours and if you are not aware of this you stand to lose a lot of your hard earned money.
The fourth rule is knowing when to sell your stocks. It can be tempting to hold onto your stocks as the market performs strongly because you are unable to predict the impending recession which is likely to follow any sustained boom. There is a famous rule developed by a famous investor which was to sell your stocks when everyone is buying and buy your stocks when everyone is selling.
This advice is worth remembering and if you follow the simple rules outlined above you have the potential to be a great investor and generate a high stock market return without taking on unnecessary risk.
The Money Stock Market
The money stock market is a safer option for investors that do not have the time to follow the daily fluctuations in individual share price movements. When you invest in the money stock market, you are choosing to put your money in the hands of a whole country rather than one particular company. This requires less research and can be carried out by those investors who are inexperienced or unsure where they should put their money.
If you are at a loss on how to choose a country, and their money stock market, there is an interesting technique which was developed by a famous investor A.D Fitzgerald. The story goes that A.D Fitzgerald stuck a map of the world on a wall and asked the investor to throw a dart at it. He then invested all of the client's money into the money stock market of the country where the dart came to lodge.
This story illustrates the risks which go with investing in anything but if you desire returns which are generally more secure than a stock market return, then the money stock market may be your thing. It is still wise to remember the fundamental rules of investing such as knowing your stock and keeping control of it by staying informed and understanding your risk appetite.
As with gambling, it is important to only invest money you can afford to lose especially if there are other people relying on you to support them.