Monthly Archive: May 2019

IS IT WORTH INVESTING IN STOCKS?

With financial surpluses, we often wonder what to do to multiply them in some way. If we want to do it, we have many ways to do it, from the low-risk ones to those that can make us lose our money. As we know, if we decide to invest in a safe way, our profits will not be too high. On the other hand, risky investments may bring us high profits. But the most important is the word “may”. It is not said that thanks to them we will significantly increase our property. What’s more, we can lose our money.

Is it worth investing in stocks? 

Is it worth investing in stocks? 

However, if we decide on a higher risk and higher profits, we usually buy shares for our money. They are issued by many companies, and the revenue generated from their sale is often spent on the development of the company. Trading in shares is very well organized, thanks to the operation of the Warsaw Stock Exchange, where shares can be bought or sold. Why is it considered that investing in stocks is very risky? For their prices are constantly changing. And share owners have little influence on whether the price of a given paper will go up or down. It depends mainly on the condition of a given enterprise, but also on macroeconomic data or data from the industry. Therefore, everyone who owns shares is not sure whether in a few minutes their price will not decrease, because it turns out that some factor affecting the valuation of the company has changed to a disadvantage and therefore some people will want to sell their shares. Of course, we can have the opposite situation and our shares may increase their value as a result of some factor and in this case we gain.

So you are probably wondering if it is worth investing in shares. And probably there is no unambiguous answer to this question. Especially that we can buy stocks in two ways. First of all, we can “play” on the Stock Exchange, constantly buying and selling shares. Secondly, we can treat the purchase of shares as a long-term investment. In this case, we buy the stock and “keep it” in our portfolio, no matter what happens to them. As statistics show, the second solution is more profitable (although not always). Therefore, experts recommend this way of multiplying their money, of course, if we decide on this risky solution. And of course we have to realize that we will never know if our choice was right and we will not lose our money. Therefore, not everyone decides to invest in this way.