Why you should invest in the stock market right now?

 


The S&P500 is an aggregation of the largest 500 companies in the US and has a terrific returns ratio of 10% - 12% annually. Imagine, only $10,000 invested in the market 50 years ago would have grown to over $380,000 today!  There might be multiple reasons to invest in the stock market, but let’s go over the best of 7 reasons today..   
1. EXCEPTIONAL RETURNS 
People invest in the stock market because of the potential to earn higher returns than other conventional investments like Gold, Bank deposits, etc may give you as low as 0.01% while the average stock market return is about 10% annually.   
2. BEAT THE INFLATION 
Stock market returns are mostly beating the inflation rates, the long-term inflation rate run about 3.1% annually compared to double digits returns of the stock market. Stocks have been a better way to beat the rising inflation rates.   
3. PASSIVE INCOME? YES!  
Who doesn’t like passive income streams? While being invested in stocks you can receive the benefits of dividends that companies pay from time to time over the course of quarterly or even monthly in some cases. This can be your +1 of Paycheck or retirement income!


  
4. HONOUR OF BEING PART OF SOMETHING BIG 
Your ownership of stock constitutes a small part of the company, you can own the tiny part of the company whose services you really love.   
5. LIQUIDITY 
Almost all the stocks are traded in stock exchanges publicly, which makes them easy to buy and sell unlike other investments like real estate which you can’t sell overnight. In case you need cash in an emergency stock can be liquidated almost right away!   
6. RISK MANAGEMENT 
You can always build a diversified or balanced portfolio with different asset classes to keep minimum your risk profile while improving your returns at the same time.   
7. START SMALL-GAIN BIG 
Today’s 0% commission structure of many online brokers and the option to buy a fraction of a share you can start as low as $100.  
   
Quick tips to avoid big losses in the stock market
Let’s face it, gains are not without risks in life, therefore the stock market is no different. There is the risk to lose your money if you take unplanned decisions. Below are some quick tips to avoid big losses in the stock market and reach your targets!   
   
1. STOP LOSS 
Always have a planned stop-loss strategy beforehand, ideally, you should keep your stop-loss at 7% below the buy price. Stop loss may not seem a good idea at first but it will surely save you from big losses. Calculated risk is way better than unplanned risk!   
2. ENTRY POINT 
Entering the trade at a certain price point is very important to reach your target in a stipulated timeframe and avoid losses. There are multiple processes to decide the entry point of the trade e.g., technical analysis, fundamentals of the company,
analyst reviews, and so on; here comes 
Ticksignals.com to rescue with its proprietary supervised AI system which generates the signals by doing a detailed analysis of the stock with pre-defined parameters.      
3. EXIT POINT 
Taking your profits at a calculated exit plan is equally important as entering the trade. You should always have a total profit calculated you are willing to earn before entering the trade. Our proprietary Supervised AI system will generate the signals with the Buy price, target percentages, and Sell price of the stock with a minimum waiting period in your mailbox before the market opens, isn’t that cool?   

No comments:

Powered by Blogger.