This archive report was first published on 16 October 2019.
Five reasons why you should invest in stocks ¶
Published on October 16, 2019
Investing in stocks can be a lucrative option for those looking to grow their wealth. But why should you choose stocks over other investment options? The answer lies in the numerous advantages that shares offer.
One of the primary reasons to invest in stocks is the high return on investment. Shares have been known to double or even triple in value within relatively short periods of time. In fact, returns of between 10 per cent to 25 per cent are a common occurrence in the stock market.
Another advantage of investing in stocks is the low risk involved. While many people view shares as a risky venture, this is not entirely true. Risk comes from a lack of knowledge and understanding of the market. However, with a clear and simple method of trading or investing in shares, you can minimise risk.
One of the greatest insurances against risk in stocks is selling. If the market behaves contrary to your expectations, you can simply get out at a predetermined price. This is a strategy that many investors fail to adopt, hoping that the market will reverse in their favour. However, hope is not a strategy in trading or investing in shares.
Another advantage of investing in stocks is the ease of cashing out. Unlike other investments such as real estate, which can take months or years to mature, shares can be sold quickly and easily. In fact, gains can be realised within a few days, making shares a liquid investment option.
Finally, investing in stocks requires minimal capital to start off. With a minimum lot of 100 shares, you can begin investing with as little as Sh510, commissions included. This makes shares accessible to anyone, regardless of income level.
As long as you have a clear and simple trading or investing system, shares will not take much of your time. With their attendant advantages, they could just be the extra source of income that you needed to attain your financial goals.
The writer is the author of The Ultimate Framework for Success in Shares.
