Learn to Understand Stock Investing for Beginners

Investing in the capital market such as www.alphabetastock.com can be done by everyone, you don’t have to have an investment manager certification to start investing, you don’t have to have an economic background or outstanding knowledge about stocks to be able to enjoy the benefits of investing in stocks, and you don’t have to be a millionaire first to buy shares. So, the point is investing in stocks is an easy and promising thing, of course.

Investing in stocks of course cannot provide a guarantee or continuity of monthly income. Therefore, before investing in stocks, we must first understand what stocks actually are, what are the risks, and what are the correct principles of stock investing. What is the psychological condition that we must have as investors so that we don’t panic easily and eventually become successful investors?

Before we decide to invest in the stock market we must identify our risk profile. The risk profile of each person is different.

Our risk of buying stocks, of course, could be that our shares will decline in market value so that if we sell these shares, of course, we will experience losses, we can even lose our investment value if the shares we buy are delisted (removed from the exchange, aka no longer traded on the exchange. ).

Well, the tendency of each person to face risks is of course different. For example, in the above case, we don’t have a problem if our investment value drops by 30% from the nominal we spent during the initial investment, or we don’t mind if even the money invested is lost at all. So the greater we tolerate our loss limit, the greater our tendency to be risk-takers. But remember the principle of High-Risk High Return, meaning that an investment with a high risk must also have the opportunity to provide high returns.

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