4 Reasons Why You Should Invest in Stocks

| December 16, 2010 | 2 Comments

why invest in stocks

Why Invest in Stocks: Reason 1

The first major advantage that comes with investing in stocks is the fact that it has the ability to give you a huge return in terms of profit. When you put your money in the bank, you will see that every year you start to build up a small amount of interest on your savings. However, does this have the ability to make you rich? In short, no. However, when you invest in the stock market there is every chance that you will see a huge amount of profit on your initial investment.

Why Invest in Stocks: Reason 2

When you begin your investing journey you are able to decide where you want your money to go. The good thing about this is that if you do some thorough research into the stock market then you will be able to see what companies are going to be able to return the maximum amount of profit. If you were to simply put your money in the bank then you will already know how much you are going to see in terms of profit from accumulating interest, and for the most part, if will not be a lot at all.

Why Invest in Stocks: Reason 3

When you invest in stocks you are able to easily convert what you have accumulated into cash. This is because you are able to simply sell the equity. The reason why this is such a good thing is because there are not many other investment opportunities in today’s economy that would allow you to liquidize your equity into a lump cash sum. This is one of the reasons why taking advantage of the opportunity to invest in the stock market is generally a very wise move. This is the best way to get started if you want to make the most of the stock market.

Why Invest in Stocks: Reason 4

Something that many people do not know is that when you are a stock holder, you have a lot more power than you would if you were just a consumer. Stock holders are able to vote for certain things within the company that they have invested in, which is something that you would not be able to do if you did not invest in that stock.

These are just some of the many advantages that come with investing in today’s stock market. There are so many more that prove that investing in stock is a good idea.

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Category: Learn to Invest & Trade

About the Author ()

John Tan has been Vice President of BlueTrust Investments Corporation for 6 years since the mid-90’s. He has since moved on, to be a professional full-time trader.

Comments (2)

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  1. Sam says:

    Could you share your views on whether its a good idea to use instruments like Forex, CFDs instead of stocks? Any major disadvantage of one over another>

    • ProfitFan says:

      With any instrument, it’s always good to consider these things:

      - Deposit and withdrawal of funds
      - Margin ability
      - Trading hours

      In terms of complexity, you can always pick up and learn the topics, and with any chart-based instrument (which is probably any kind of market), you can always use the universal concepts of indicators such as moving averages and candlesticks and so on.

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