How to generate wealth through stock investment 

‘Buy low and sell high’ is what it takes to invest in stocks .It is believed that most wealthy people have made a fortune through investing in stocks. Stock investment is a renowned way of creating financial independence, financial security and generational wealth.The success of this venture is as a result of understanding how the stock market works as this fortune can either be made or lost. Below are few concepts to consider while making investment decision;

 How to generate wealth through stock investment 

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‘Buy low and sell high’ is what it takes to invest in stocks .It is believed that most wealthy people have made a fortune through investing in stocks. Stock investment is a renowned way of creating financial independence, financial security and generational wealth.The success of this venture is as a result of understanding how the stock market works as this fortune can either be made or lost. Below are few concepts to consider while making investment decision;

‘Buy low and sell high’ is what it takes to invest in stocks .It is believed that most wealthy people have made a fortune through investing in stocks. Stock investment is a renowned way of creating financial independence, financial security and generational wealth.The success of this venture is as a result of understanding how the stock market works as this fortune can either be made or lost.

Below are few concepts to consider while making investment decision;

Planning Ahead

Ensure that you plan before making a purchase. Investors choose to purchase stock when they are full confidence that they can predict the stock behavior.

Creating plans prior to purchase helps to protect investors from excessive loss and missing selling opportunities. Always set high and low selling points this will be a safeguarding measure if the stock flops to its lowest point it’s advisable to sell it before it gain further loss. This will free your money to buy other stock you may consider to buy the same stock once after studying its performance.

Observe the Indicators

There are different indicators for different stock that investors should observe, the market condition and performance of similar companies can be one useful indicator that an investor can observe.

There are other technical indicators used while investing in stocks .They are based on statistical analysis which are available in most of the online stock resource pages. They give information on the stock performance over a period of time many online stock resources gives a different statistical analysis method stock indicator graphs can be viewed .Prediction of stock is only possible if one learns effectively on how to use the indicators and forecast how the stock will perform in the future .It’s also important to understand other factors that might influence the stock’s price..

Never put all your eggs in one basket ‘this is one thing that investors should know and this can only be realised by diversification. To offset the losses, this is how it works, you supplement for stocks that have a likelihood for going down by making a purchase for another stock that will likely go up under similar conditions. This process helps you be certain of making profit. Other ways of diversification include: Purchasing stocks from different markets, Making a purchase from guaranteed gainers such as bonds ensures you realise some returns.

Technical Analysis

This method determines future trends of prices by looking at factors that include; trade volumes, previous prices which is presented in form of graphs to indicate the statistics on shares and market sectors. This way, you get to see the recent achievements of various market sectors. This method helps when selecting the best stocks in a given market. Technical analysis comes in handy when you are making a decision to either buy or sell a stock. Technical analysis graphs can be assessed through the internet websites and the common indicators that are used are bar graphs, trend lines, volume, moving averages, support and resistance, stock patterns like the head and shoulder formation and also overbought or oversold oscillators.

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