Copyright 2020 by Armani Murphy - All Rights Reserved
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Introduction: Personal Notes from the Author
What would you wish for if I said you could have whatever you want? Take some time to think about this question because you might get your wish. Regardless of what you want, a particular resource is needed to make it come to fruition. That resource is MONEY! Everyone in the world who has a consciousness of the power of money does not only seek to possess it; they also desire to attain freedom with it. The freedom you get with money and from it is known as financial freedom.
Financial freedom is not an elusive concept, it is a possibility, and with so many people already living in that reality, you too can get it. When an individual attains financial freedom, he/she has access to money whenever it is needed. The person can also create wealth because to get more money, you will need money, right? Excellent, which means we all should be learning how to make money, invest it, get more of it, and become financially free.
This book will introduce you to the most fundamental strategies that will help you become financially independent. But wait a minute, there are various ways to achieve this money goal, and even if we had more time, we could not exhaust all the options. This realization means we will have to concentrate on a few methods, and this book is going to be all about one of the most viable ways to become financially free.
STOCKS!
Yes, we will be focusing on stocks and how you can invest in the stock market. So many famous individuals in the world today made a lot of money from the stock market, but that is not the sole reason why we are in this discourse. The stock market is a timeless avenue for wealth creation that has stood the test of time and will continue to remain in the future. This means if you are going to become financially free in the future, the stock market is your best bet.
This book provides detailed insight into the nature of stocks, how you can start investing, and the steps to take even after making your first investment. If you always thought the stock market was Complex, you are about to read through a simplified yet effective guide on how to enjoy the process.
With this book you are taking a step forward towards building the future you desire, today. As we begin our exploration of the discourse, I want you to remember a Chinese Proverb that speaks of your journey towards financial freedom.
Chinese Proverb: The Best time to plant a tree was 20 years ago. The second best time is now, Now back to that wish you were going to make at the start of this book. Do you know what you want now? Continue reading, and I will show you how to get and sustain it.
The Pre-investment Process
T he pre-investment process entails the information you should know before investing and the activities you should do before going into the market. This process is very crucial because it mentally prepares you for what you can expect from stock marketing investments. In this chapter, you will unearth fundamental concepts as well as definitions of key terms that will help you understand the investment process.
So what are stocks, and what is the stock market?
A stock is an investment that represents ownership of shares a person has in a company. If you buy a company's stock, you are purchasing a piece of the organization, which is a "Share." When you start buying stocks, you become an investor who has invested funds into a company because you believe the company will go up in value. If the company increases in value over a period, its stocks will also increase, which means the value of your stock will be better than when you bought it.
The stock market, on the other hand, is a place where company shares are traded. These companies have to be publicly listed firms. Buyers and sellers of stocks meet in the stock market to trade stocks. Now you are going to become an investor in stocks; you will buy and sell shares in the stock market as you decide on the companies you want to place your investment funds.
Why stocks? Why should you become an investor?
You should invest in stocks because it offers a very high ROI (Return on investment), and this can happen over the most prolonged period. No other investment platform provides the kind of returns you get from the stock market, long term. Now the emphasis here is "Long term" because for you to get the dividends of your investments in the stock market, you have to be patient.
However, those who give their stocks time to perform in the market testify of the high returns they got. More importantly, investing in stocks is the best form of passive income you can get as you wouldn't have to work at the company you invest in, all you have to do is watch your stocks increase in value.
In addition to these fundamental ideas, you should know that the stock market is volatile, which means that it is not always sunshine and rainbows there. Sometimes the market rises and falls, yet it remains the best bet for investment because, despite its volatile nature, investors still make a lot of money in peak seasons. Simply monitor the market closely, and you will thrive.
Next, you will need to set a budget for your investment because, as a new investor, you may wonder, "How much is required to start?" "How much should I invest in getting high yields?" The amount of money you will need is determined by the number of shares you wish to buy. The value of the stock also matters, and share prices can start from a few dollars to thousands.