Investing in Stocks Explained for Newbies

True financial freedom is when your money works for you and all you have to  do is monitor and supervise anywhere you are. Yup, the goal of investment is to keep you less busy in life to have more time for things that really matter—knowing God, serving him, be with family and help more people.

And the good news is, ordinary folks like me and you can make big money in investments starting with our small savings. Ambitious but not impossible. Together, we’ll make it possible through lessbusy.me. So watch out for more articles on this.

Assuming you have started making small savings and diligently grew it by doing small retail activities—like selling or a legit and clean network marketing business (I’ll soon come out with posts on legit and clean networking businesses). I and my wife sell raw honey from Davao—just direct selling. We save what we make from it, little by little. If you want to sell honey, too, and make some money, contact me. Anyway, when you have enough capital, you start a small business. By God’s grace, the business flourishes and soon you have enough money to invest.

And you chose to invest in stocks.

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Image from: 3dprint.com

What are stocks?

Stocks are how ordinary folks with minimum capital can invest in big corporations like San Miguel Corporation and make money. By “buying stocks” or “shares” you become a small owner (or part-owner or “shareholder”) of the company, together with other small owners who also bought shares in it. You do this buying of shares in a Stock Market where a lot of buying and selling of stocks happen.

In the Philippines, it’s the Philippine Stocks Exchange or PSE.

You buy stocks from a company to benefit from that company’s value potential over time—and the benefits or profits can be very substantial. You can make your money grow big fast with stocks.

How you make money

You make money with stocks you buy through stock price appreciation and dividends. Price appreciation is when the market price of your stock increase over time (over time means at the proper time it happens). This increase is due to an increase in the stock’s potential value and the demand to buy it. If the company grows fast, so does your stock price.

Dividends are also issued when the company you bought shares from profited. These dividends can be in the form of cash or additional shares. This way, shareholders share in the profits of the company without being employees there or working for it. Your money starts working for you.

Is Your Money Safe with Stocks?

To make sure your money is safe, get a legitimate investment agent with a legitimate investment company to do the stocks for you. But then again, remember that business and investment is always a game of risks. Nothing is certain here. But you can rest assured that stocks have the potential to help you earn big money.

In fact, it’s been proven how investments in quality stocks give better results than other investments. This helps you attain your financial goals quicker than by just relying on savings and small businesses or keeping all your money in the bank. Stocks is among powerful ways to make money work for you instead of you working for money as when you do a job or small business.

The stock market is more known to make increases than declines. It may decline for a time, even in great percentages, but experts always say the Market is bound to recover sooner or later, often redounding with more powerful potentials.

Thus, with stocks, you invest for the long-term to reduce risks of losing. This means you often have to wait long and even see your shares falling. When the right time comes, you sell and make a killing. Yes, it’s a fast way of multiplying your money many times over, but you have to be patient for the right time and be ready for the risks.

That’s how to grow rich from scratch! Watch out for more posts on stocks and investments. In the meantime, checkout my e-books here.

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