What Is Stock Market

Why stock market investing and not other investment strategies?

There are many investment strategies that you can perform such as real estate purchase, business purchase and the more electronic ones such as Bonds, GICs, Mutual Funds, Forex and Futures, but the stock market is the most exciting and obviously riskiest. And as the say, the more riskier, the more rewarding. It also depends on which stocks you chose to increase or decrease your risks. Stock can also be traded in a blink of an eye in an exchange vs. if you purchase a investment property it could be sitting in market for months before it can be sold or traded. Note that you can even purchase properties with stocks! We will cover this later on. So we have accomplished that stocks can be the best investment strategy if used with caution and properly.

What are the pros and cons of stock market?

Pros:

1. Trades can be done on the same day/hour/minute/second from a computer to put or pull your money from the market and everything is real time i.e. you can cash out anytime
2. Access to the whole world (each country has its own stock exchange) from your finger tips on your PC and your broker account
3. Can invest in almost anything possible in the world with however amount of money you may have or willing to put, the sky is the limit
4. Can make money if you can find the direction of an stock (up or down, doesn’t matter) with longs or shorts

Cons:

1. Not for everyone and can be very stressful when things don’t go your way
2. Need lots of practice, research, reading and good knowledge to become good at
3. Sometimes you need patients to get results
4. Sometimes hard to beat the computerized trading machines, flash trading servers etc