| The stock market is one of the most popular forms | | | | them from investing until they get older. There is |
| of investment for investors. If you don't invest yet, | | | | nothing wrong with that at all. It only takes one really |
| you might be wondering why someone would put | | | | good investment to make up a lot of years. You |
| money in the stock market. The truth is that there | | | | could have waited until you were 60 and then |
| are a number of reasons to invest in the stock | | | | invested in Google and been completely fine. |
| market. Let's look at a few of the best reasons that | | | | Another reason that someone would want to invest |
| you might want to invest. | | | | in the stock market is for a career. You don't have |
| The number one reason that people invest in the | | | | to wait until you're retired to reap the benefits of |
| stock market is for their retirement. If you start | | | | your work. Many people, called "day traders" make a |
| when you're young enough, the stock market is a | | | | living out of buying and selling stocks every single |
| fantastic tool to grow your retirement fund. The | | | | day. They make multiple trades every day and make |
| benefit that you have when you are young is time. | | | | their living off of the daily fluctuations in the stock. |
| This helps to average out the risk of the stock | | | | They aren't in it for the long haul. Instead, they are |
| market because you have a long time to win. You | | | | there to make the quick dollar off of the market |
| can usually tolerate risk more when you are younger, | | | | "ups and downs". This is another viable strategy and |
| because the stakes aren't quite so high. You probably | | | | has been used successfully by many people. If you |
| don't mind investing in risky things at the beginning so | | | | don't know what you're doing, you could stand to |
| you can build up your nest egg. Then over time, you | | | | lose a lot of money doing this. If you don't do your |
| can get into some more "cash cow" type of stocks | | | | homework, you'll most likely just be guessing on |
| and build steady growth. If you invest over a long | | | | what a stock will do. In this scenario you might as |
| period of time you can use the dollar-cost averaging | | | | well go to Vegas and roll the dice. Your odds of |
| method to steadily grow your portfolio. The basic | | | | success are similar. |
| idea behind this is that you periodically and | | | | Besides these two obvious reasons, one of the most |
| systematically invest the same amount of money in a | | | | overlooked reasons to invest in the stock market is |
| certain stock over time. This way you will be | | | | for the fun. There isn't much better than picking a big |
| unaffected by the market and will have a large | | | | winner in the stock market. When you pick a really |
| amount of stocks by the time you're done. | | | | big winner and sell just before it goes down, others |
| While it helps to start early, you don't have to. There | | | | will look at you like you're a genius. You may have |
| are many scenarios that people have, that will keep | | | | been guessing, but they'll never know the difference. |