Clearer Pictures On Why You Should Investment In Stocks Market

Clearer Pictures On Why You Should Investment In Stocks Market

If you have been reading my article for a while now, you will understand why I mostly focused on investment and marketing strategies.

Here is another sweet and interesting area I really want you to focus on in terms of Investment and stock Market.

1. Provide a comfortable avenue to get out of the rat race early

The rat race in the pursuit of living is enormous.
The enormity has been increased by the many gadgets we now almost depend on for daily existence e.g. phones, laptop, ipods etc. Less than 10 years ago, we all lived comfortably in this country without a mobile phone but at the moment it’s like our lifeblood. Also there are bills to be picked at the end of the month. Imagine if all this have to be picked up by your salary. (Yes, I know there are those whose salaries are beyond imagination, but they are mighty few in Nigeria.

They are less than 3% of the population).
it has been proven over and over that you cannot make it into the “Champions League” of wealth with just your salary. If one carefully invests, he can beat the rat race using the instrumentality of the stock market, given its proven track record.

2. Improve the Economy
The economy needs me and you. It may seem not so true but it’s the truth. The more people are empowered financially the more potent their purchasing power. Think of it, if the over one billion people in China had $100 per month. That’s a $100 billion economy per month. So in a year we are talking about a $1.2 trillion economy. That’s the power of numbers. Let’s bring it home.

Nigeria’s Population: 140 million. Let’s assume averagely, we spend over NGN2000 per month, that makes it a NGN 280 billion economy. Yearly, it results to a NGN3.4 trillion economy. You and I believe that this is a very do-able model in Nigeria.

Where is the NGN 3.4 trillion coming from? You and I, my dear. When you invest in the stock market the money goes round. Companies are built, individuals make profit and a higher spending power is in place. Just think of it this way, would there be a GT Bank or Oceanic Bank if their IPO was unsuccessful during the consolidation exercise?

Insights into Stock Market Dynamics
Today, Dangote is heralded a billionaire. Where is he getting the money daily? I bet, it’s from you and me; the spaghetti, the cement, the flour, the fruit juice etc. MTN makes so much money, who did they get it from? “You and me”. I’m sure, you get the drift. When you invest in most of these companies, they get the working capital to execute their business plans, though this is mostly done during IPCs and private placements.

Now that I have laid the templates, you can see the big picture why you should invest in the stock market. It’s not just about profiteering. There’s more to it. As a take home, you can sit down and sincerely put into print why you are in the market.
When you know the “why” of a matter, the “how” will emerge.
These are not the reasons why I’m investing;

1. Fear of Tomorrow
The worst mistakes of your life are done when you are afraid. Never allow fear be the motivating factor in whatsoever project you are embarking on in life. The Exchange is a bad place to be motivated by fear. The fear of losing money has kept so many people from becoming wealthy via the exchange.
They do not understand how it operates and at the same time do not bother learning about it and so they happily put their money in saving accounts or fixed deposits.
The second level of fear is in those who invest but cannot stomach seeing a stock they bought going below the purchase value. To them they are losing money, no matter what the reason was. The stock market is operated by principles. Things make the prices go up and down. When you seek to know the “whys”, you will deliver yourself from this level of fear.

The fear of tomorrow makes you jittery and when you are in that state of mind, I can tell you, you will definitely not make a good decision.

2. Pension
There is so much to do with life than waiting for pension. Get busy living. Don’t wait for this and that time. As it was said in the movie, Shawshank Redemption “You get busy living or you get busy dying”. Life is an active game. Warren Buffet says,
“It doesn’t take a muscle to do what I do and so I’ll be here for a long while.” I’m amazed by the multitude of young people that are already planning for their pension. It’s good to start planning early but please let not the fear of what you will do at old age cripple your daily living.
Sufficient unto this day is the evil thereof.
Tomorrow will take care of itself. Please enjoy the moment. Plan what you want to do in the future but don’t be obsessed with it in such a way that you miss the present.

If the issue of planning for your pension is the sole reason you are investing, then you are a candidate for suicide if the Enron drama should hit any company on the stock market that you have invested in. Always remember that resilience is one of the attributes of a smart investor. When you know the rules of the game, you can always play it anywhere, any day and anytime; no matter the trend. Please aim for the knowledge; for with it you can always achieve your desired result anywhere in the world.

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