It amazes me how many people do not realize that when they own a share of the company they own the company. A great way to invest in the market is to take some very complex ideas and start with the basics. Think of a small business like a snow cone business. Think of what it takes to make money. You have an owner. You will have a CEO or manager and you will have product and labor and even rent to pay for. When investing in the stock market remember that the same principles that exist in a small company exist in larger companies. So look at the business model and make sure you understand how the company works inside and out before you invest in it.
You probably would not buy a small company if you did not know what it did. In the same way you want to make sure you are not buying stock if you do not understand the company. When buying a company you want to look at the financials of the company you are buying. You will want to do the same when you are investing in the market.
Also, remember that the stock market investing is an art not a science. This is primarily because of the human element. The market is driven by fear and greed. Remember, buy when everybody else is fearful and sell when everybody gets greedy!
- Adam Mortimer
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