Investing in Stocks: Is Stock Market Investment Safe and Profitable?

I bought shares for the first time in 2016. I invested everything I had saved. It was something like gambling because I invested $1000 in buying shares from the company that was recently listed on the stock exchange. It was risky but worth trying because I was allotted 1000 shares for $1 each. The current value of those shares is around $5000. I think it is a good investment considering the fact that I did not have to do anything yet I have made $4000 profit from the $1000 investment in the period of 5 years.

What is the best way to profit from the stock market?

I have not sold my stocks, I have bought stocks but never traded. Actually, I am a long-term investor looking forward to investing for at least 10 years. I have been holding shares just for 3-4 years, I will wait 6-7 more years in order to sell my shares. I plan to buy property by selling my shares. Therefore, I am waiting for my shares to skyrocket. If I had no other jobs, I would definitely try my hands on stock trading, but I have not tried stock trading because I need a trading account and license, and it cost a lot of money.

I have shares in banks, insurance companies, and energy companies. I have Shared in 10 different companies. I bought these shares between 2016-2019. I bought these shares during the IPO launch. I have never bought from the secondary market, buying from the secondary market is beyond my reach. When I invest in shares I always look for IPO. In the last 2 years, I have not bought any shares because I do not have enough money due to the Covid pandemic and there are also not many good companies launching their IPO. I am a long term investor, so I have not sold my shares

Between 2016-2019, I bought shares in various companies. I invested about $3000 in total. The value of my shares has now increased to $9000. I have made a whopping $6000 in profit by holding my shares for 3-4 years. However, I am not yet selling my shares. In fact, I am thinking to invest more money in the stock market, possibly when there is a new IPO. Generally speaking, I buy only during the IPO, I do not buy from the secondary market. The IPO shares are cheap and the secondary market shares are expensive. I will sell only when I need money to buy properties.

Making Money From Stocks

There are many ways to make money as a shareholder, the easiest way is to earn dividends. Earning dividends means you earn money on your share. If the company is making a profit, will distribute the profit to the shareholders and you will earn a profit on your investment. Some companies give you cash dividends whereas some companies give you share dividends (instead of profits on cash, you will receive shares, which you can sell to make a profit or keep for yourself for more profits). You can also make money from the share by investing for the long term.

If I have $100 I can buy shares, can I buy a property with $100? Well, in my country, I need at least $200,000 to buy a property. Investing in shares is possible for everyone, irrespective of their income size. If you manage to buy shares during the IPO, you can buy for a very low price. For instance, in my country, you can buy IPO shares for $1 and you will have to buy at least 10 shares, which means you can invest in the share market with just $10. Investing in properties is open to only those who have a lot of money.

You can earn a living by working for a corporation, however, you cannot build a fortune just by working for big companies. In order to build wealth, you need to invest in businesses or create your own businesses. While creating a business might not be everyone's cup of tea, all of us can start investing in businesses provided we have funds to invest. The stock market is the easiest way to start investing in businesses. When you buy shares from a certain company, what you are actually doing is you are investing in that company and getting a partial ownership

Before any company releases IPO shares, it needs to get approval from the security board of the country. The security board of the country will give a nod only when the company shows potential, has good financial standing, and is already making profits. Therefore, buying IPO shares is less risky than buying shares from the secondary market.

If you want to invest in the stock market, buy IPO shares. IPO or Initial Public Offering is the Primary Share that a company opens for the public after being listed on the stock exchange for the first time. IPO shares are relatively cheaper but have a high chance of giving returns once they close and open for the secondary share market.

First published on Trendri, in author's name