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you must have heard about the stock market where companies and businesses trade their
shares and investment values investment opportunities flood everywhere only for
those who know how to mine them discover them and take advantage in an age where working
smart is the better way to earn trading stocks is a very lucrative deal to get involved with
the stock market is a very competitive digital marketplace where the values of stocks are
dependent on the business performances and profits made by companies are exchanged
people make profits from the stock market in three ways one owning and holding security two interest
and dividends on shares three increment in the long-term value of stock as you might be thinking
it is true that not everyone is involved in the buying and selling of stocks in the literal sense
there's a smart way to go about that and you'll find out in this video against the
widespread belief that the stock market traders have to sit in front of computers all day
thinking and monitoring the prices of stock commodities investing in the stock market can be
more straightforward the best way to make money in the stock market is not necessarily in the buying
and selling of bonds continuously the secret is buying the security and holding on to them
this is the classical warren buffett investment style in the real sense of things buying or
investing in stock means you're buying a share of the company essentially owning a particular share
in a company that means you've contributed to their working capital and they would make trades
with your money hence you're entitled to getting an equivalent amount of profit by percentage as
your periodic share furthermore as the price of the stock rises your value with them rise that is
the monetary equivalence of your share increases to a new amount away from the troublesome price
monitoring and selling make a decision to invest in common stocks for the long term
what you should do is to buy a company stock and wait for it to yield in time dividends and
periodical profits to make and you can eventually sell your shares to someone who's willing to buy
to make profits that count you have to follow business news about companies that are doing
well in the market and have high prospects here are things to look for 1. business history study
how their stock has grown over the years with attention paid to the last 5 years especially
2. select a company with excellent leadership and policies three investigate the practices of the
company and their service towards shareholders you can read up reviews online when these are chosen
especially for well-managed companies the value of your stock will increase with time and you can
hold on to your stock for a minimum of five years before you decide to sell or to keep holding on
how stock works let's imagine a fictitious company harry and harry who recently made five million
dollars in sales at the end of a business year from their sales their return is only 1 million
dollars seeing that their business prospects are high and they can make more profit if they expand
harry and harry put out shares to sell they decide to sell a thousand shares for a thousand
dollars each so harry and harry allocates a hundred dollars profit each of the shares
the profit is known as earnings per share buying five shares would mean you're buying
fifty five hundred dollars of the company's profit or loss the growth in the company's
share value is growth in your benefit too the main profit is the rise in the company's stock price
which happens in time it's why the stock market should be considered as a long-term investment
and scheiber was a woman who earned less than four thousand dollars per annum but she took advantage
of the stock market by buying stock with her five thousand dollar savings she grew her asset into a
multi-million dollar fortune that appreciated even unto her death her lawyer and broker reported that
she had a 22 million dollar worth asset the company can send cash dividends to you from
some of their gross profit you have depending on your agreement dividends would be paid by cheque
or directly to your personal account or brokerage account however there's other options that might
fetch you money the company can decide to buy back the shares when they have made enough profit
when a company repurchases its shares in an open market it's to bring all the shares back home
that also means the company is rich enough to reduce debt and internalize its profit
other than this the company can also reinvest the funds gotten from stock trading to buying
more assets for the company what you have control over in the stock market is the amount you invest
and what to invest it in you may also determine what you want with your funds but this is based
on the options available by the companies other than these you may sell your share to someone else
for more than what the company is worth at the moment this is possible if the person sees a more
promising future for the company than what it's worth at the moment if you need emergency funds
you can trade part of your stock for a financial way out so how do you assure financial success
while trading for stock the first thing is to do your homework just like every business needs
researching every investment needs research you have to make inquiries run your research
and verify what's up with the company as suggested earlier however more than that you should also do
a study about the business invest only in business that you know about make market research about
the industry you'd like to invest in trading in a market you understand will help you make informed
decisions by market trends invest with discipline the stock market is very volatile and consequently
the risks are high you should carefully and patiently make your investment if you're not sure
about the future of the company you want to invest in you can invest by allocating a certain amount
and later increase your investment if you think the company can do even better patience in a
disciplined approach to investment will help you minimize the risk of loss and maximize profit
also make sure you invest what you can afford your surplus do not accumulate bad debt by getting
your head in the game with the hope of a quick market turnaround with borrowed funds if things
go wrong debt is unavoidable monitor monitoring is essential albeit the type of stock investment you
make would determine if you should worry about frequent monitoring or periodic monitoring no
matter the choice supervision of stocks is vital monitoring would mean to keep up with the news
updates events about the company and industry you invest in and stock market and stock price trends
be realistic there's only a thin line between investing blindly and investing based on
calculated risk working with a calculated risk means the prospects have been observed
and seem plausible to a great extent however investing unrealistically would mean to invest
with assumptions and hopes let your assumption be realistic with real figures being put into
consideration becoming super quick rich with the stock market if you're thinking about getting
super rich within a short time in the stock market then there are things you should consider
below are the tips to follow however you should know that you're not under any obligation to
follow them put in as much money as possible this is risky true but it's also the way to
get rich super fast putting all your money helps you to gather as much wealth profit as
possible based on your potential the earlier you invest most of your money into the market
the faster your financial growth would be as much as this can turn to be a huge loss in a
consistently low market value for your invested stock it can also boost profit in a very short
yield time if the volatile market witnesses a sharp upward pull invest in companies that do
not give dividends offering dividends is a good way for the company to appreciate your support
by giving you a part of the profit while still allowing you to keep up your share with them
however this is a very bad thing if you want to get rich quickly distributing dividends means
they're not maximizing the profit by reinvesting it into their business you need a company that's
reinvesting its profit into the business to make as much profit as possible in the shortest
possible time this will allow you to cash out your shares quickly with a smiling face the bottom
line is that as good as dividends sound it doesn't foster quick wealth recovery from the stock market
do not diversify diversification is a safe way to invest that means you invest in different stocks
across different industries so that when one of them falls the other is able to cushion the effect
this though is not good for someone who wants to get super rich as quickly as possible
yeah that's because you want to invest in a company with the highest prospects
such that the rise in market value will take you as high as possible that is why you have to look
at the opportunities available for the company and the market values of its product when you are
sure that the product is able to perform well and quickly put all your money on the company
and watch your funds grow to double triple and even more within a short time diversification
slows down growth but minimizes risk a reduced risk is a long way to become rich super quick
invest in small or medium cap companies small companies with potentials are able to grow their
market shares and values faster than big companies these companies have high possibilities of winning
the hearts of the customers and although they're starting small and working hard success is very
surely only in a matter of short time for big companies they've surpassed the rate of geometric
growth rate growth is slower than it was some years back picture this scenario a company harry
and harry sells in 27 states out of a country that has 30. their products are household products and
most people within their customer demographics use them already all harry and harry needs to cover is
three more states for growth and to maintain their customers another company porter inc
manufactures a household product a unique solution from what the market has always known
within six months of being in the market porter inc has already reached four states and the orders
are climbing that means porter inc has a stunning potential for growth and if there is any company
to invest in for a quick turnaround it should be porter inc because it has more ground to cover
and the growth is imminent making quick cash from the stock market is a great deal the higher the
risk the merrier the fun so there you have it like this video and share your thoughts we would
like to get your reactions with that said have a good one and i'll see you all in the next one