Investing in stock market (part 2)

Let's continue our way trough the fears that is holding us back from investing in stock market. As I remember the last fear I mentioned was Fear that investing is for millionaires. Here is the next one.

Fear that stock market would crash

It is true that the stock market have crashed big time recently, but things like these happens periodically. For example when stock market crashed in 1929 people lost over $14 billion dollars. I admit it was horrible, but later in 1987 investors lost over $500 billion dollars. I'm not saying that you wont loose money, but there is one thing that people don't talk about and that is How much they earned before they lost some money? You cant escape from market crashes but there is one thing you can do. You can make a market crash work for you. Let me explain after every crash comes recovery and when that happens people who have bought shares in time when share price was very low will make big money and I mean BIG!
Your fear that market will collapse as it has done in the past is best dismissed by learning that the probability of another crash is infinitesimal and that the damage caused by previous crashes was not as bad as the public's perception of them.

Fear that investing in stocks are like gambling

Investing in stocks is not gambling. True, both do attempt to accurately predict future outcomes, but similarities end there. Here's example for you. Imagine you have $1000 dollars right now you don't need that money you would be happy that your money would earn you more money. Right now you have two options.

1st Option
You can go to casino and try to win more money using your $1000 dollars. Chance to win is very little. It is because you have no control over the outcome. No matter how hard you will try to analyze or try to find a way how to win you won't find it.

2nd Option

Investing in stocks works a little differently. First of all losing all your hard earned money in one hour is almost impossible. Second thing is that when you purchase a stock it represent a partnership between its issuing company an its investor. As a result of that you want the company succeed, the company wants to succeed. Where is the gamble?

The fear that investing in the stock market is reliant on chance is proved wrong as new investors learn that the processes and tools with which they pick stocks are not bases on random chance but on intelligent research and decision making.

Fear that it will take too much time

To be honest this depends on you. You can spend hours doing research on one company, or you can just ask your friends advice. Because you decide to purchase the stock for whatever reason you consider important. Research is never required.
The fear that managing your portfolio will consume too much time is dismissed when new investors discover that research is available but not necessary and that they control the amount of time they want to devote to research.
Therefore I have come to conclusion:
Like any commitment you make, investing will take up some time, but how much depends on your decision. The truth, however, is that by the time you have so many stocks that maintaining them is actually causing you time problems, you should be rich enough to afford to pay people to do that for you.

Small recap

# Financial terminology should not be intimidating
# The basics of the stock market are not complicated
# Investment options exist for people of any income level
# The market is a safe stable place to put your money
# The stock market is not a game of chance
# The time required to manage your investments is minimal

Thank you for reading I hope this information was helpful.

Regards

Archy