[Financial Sharing]Why you should learn about stocks

Welcome to moomoo financial sharing! Today we are going to share a topic on [Why you should learn about stocks].

These days, all you need to do to invest in stocks is to open a brokerage account and deposit a few hundred dollars to start.

( NOTE: Each country has a different minimum investment amount )

1. Buying stocks allow you to own shares of a business with lesser capital compared to if you were to start one yourself!

2. You don't need to take care of the company yourself to make money! You can have a potential passive income!

3. Learning to invest in stocks will allow you to grow constantly!

Investing in stocks is not as difficult or complicated as you imagine.

In fact, the essence of investing in stocks is to buy a company and become a shareholder of the company.

As long as the company is making money, as shareholders we too can potentially make money. Whether it's through the spread or dividends, it's all possible.

Let me show you an example of a company.

(Disclaimer: However, we need to make a disclaimer that the companies we talk about in the course are for educational purposes only and do not represent any recommendations for buying or selling)

If you have a credit card, you will know the company named, VISA.

This company is a global company, listed on the American Stock Exchange.

As you can see from the table below, the company's earnings have actually been rising every year from 2011 till date.

Since we all believe that if a company continues to earn money, the shareholders will also be able to make money.

Let's see if that's the case.

From this chart, we can see that the stock of VISA has been increasing from before till date.

From $16 a share in 2008 to $216 a share till date, it has multiplied many times.

I used to be like most people, and didn't know how to make money through investing in stocks.

What I want to say is that if you have been learning about investing and preparing for it, when everyone loses confidence in the market, it is actually a good time for you to enter the market. Because only this time, you can pick up bargains ~

Conversely, if you don't know what company you are buying and you don't take your strategy seriously, then when the market depreciates, you are likely to sell your stocks at low prices because of fear, and you are unlikely to pick up bargains because you are usually unprepared.

Which is why a student asked me how to avoid "buying high and selling low", and my answer was to learn.

This is like saying that the original market price of a watermelon is 10 dollars. But out of a sudden rumor: eating watermelon causes coronavirus. As a result, people are afraid to buy watermelon because they are afraid.

As a result, the market price of watermelon has been reduced to 5 dollars. If you are usually unprepared, you will worry about 5 dollars is not really worth buying. Eventually, you are afraid to enter the market. But if you learn, and understand the value of the watermelon, then at this point of time, the watermelon becomes a huge discount for you.

However, in real life, many people are unable to buy with determination, typically they cut their losses when the stock price falls, to sell their stocks at low prices. This is the fear of human beings.

Warren Buffett has a famous quote: "be fearful when others are greedy and greedy only when others are fearful".

No matter what happens in the market, we should constantly be independent thinking, and know how to judge the company by ourselves, by making the best investment decision for ourselves.

Even if you are lucky enough to make money this time, what about the next time?

You still do not know how to invest, and stayed in the same place. So I have been emphasizing the importance of learning ~

Therefore, the mindset of learning is really important. Only through learning can you continuously improve.

As for why you can earn money by buying good companies that makes money?

As mentioned these principles to you in the online course ~ if you don't remember them, you will be punished to go over them several times!

In the course, we've shared some methods to determine whether the company will make money or not.

In our Premium Course, we have a systematic course on earnings report analysis to assist you to learn the analysis method in depth.

That's all for today, we'll be teaching you more on detailed stock selection methods in the premium course ~