Why Is The Stock Market Rising
Investing in the stock market is the best way to build wealth in these pandemic days. You can learn how to invest as a beginner. Today, there are so many people who want to invest and create a bright wealth future for themselves.
The stock market has gone up a lot in past months even though we have seen terrible health news about coronavirus in the world. Some of the stocks increased by %30-%50 since their lows. We have not seen any good economic data news therefore you can see that the stock market is not that similar to the economy. We all think that if the economy is doing great, the stock market is doing well but no it is different. Stock markets are mostly dependent on the company’s earnings and valuation changes in the future.
Most of the stock prices were already factored in for bad news. For example, If the company is about to report their earnings, they are going to tell the people what happened in the past quarter, people expect %40 drop in total sales. However, when data came out you can see that it dropped %20. It is not as bad as expected. After that prices of that stock are probably going to go up because the news is not as bad as expected so it is almost good news. Some companies use this as a strategy, they explain their earnings.
What Is a Stock?
A stock is basically a piece of a company or corporation. When you own stock, it means that you own a piece of a company. Investing into the stock market was not an easy like today. But in today’s world there are so many investing applications in App Store or Google Play store. Before you begin your new investing journey you have to investigate everything by reading books.
If you want to buy or sell stocks, you need to open an account for that. Today many investing app’s features are similar to each other so you can download the one you want.
Although you are new to this stock market, it is very important to create a plan before starting into stock markets
How Much Money Are You Willing to Invest?
You have to ask this question to yourself. It is totally normal to lose some money at first. The best way to learn something is making mistakes. Sometimes you can lose but then you can earn much more. Of course, all investments have risks.
Do not invest all of your money that you have spent for necessary things to live, therefore you must set a budget yourself first. If you want to get into the stock market, you have to spend less than your monthly earning. You can learn everything from reading financial books and from your experiences. It is very good to start with a small amount of money therefore you do not have to worry about money that much.
How Long Should You Invest?
The way that most people who have succeeded invest for a long period of time. If you are going to buy a stock and hope to sell it in a few days that is not really what most people focus on. It depends on what type of investor you are going to be. If you want to get rich quickly and easily this stock marketing might not be for you. Of course, you can earn money in just a few days, but you cannot get rich as much as you expected in a few days. Day trading has a lot of risks too.