Two Wealth Building Tools In Stock Market

Two Wealth Building Tools In Stock Market

Two Wealth Building Tools In Stock Market

Anu-ano nga ba ang paraan upang kumita sa stock market?

Stock market provides extra income for investors in two simple ways.

First is through dividend sharing and the other is through price appreciation. Once in awhile companies where the investors had bought their stocks will give dividends depending on its revenue and market share. Kumbaga ito yung pera na makukuha mo base kung magkano ang binili mong stocks mula sa isang kompanya. Laging tandaan na mag-invest sa isang kompanya na may high dividend yield upang makakuha ng mas malaking dividend.

Ang dividend sharing ay short-term na siya namang kabaliktaran ng price appreciation. Kadalasan kasi maghihintay ang investor ng mas matagal na panahon upang makapagbenta ng stocks sa mas mahal na presyo mula sa mas mababang halaga ng pagbili ng stocks.

Recommended reading: Mutual Fund: The Win-Win Situation

Buying stocks at lower prices and selling them at higher prices is the principle to follow in order to ensure you have high returns of investment. For example, last 2005 an investor bought shares from Jollibee with a total amount of Php 50,000, and eventually after 15 long years, the total amount of the shares was sold in the total amount of Php 500,000. The ROI is more than 100% though it took several years the principle of buying stocks at lower prices and selling them at higher prices has officially come into fruition.

Dividend sharing and price appreciation are the two crucial ways of earning money but is also rewarding as long as investors and even those who eyes to find treasure in the stock market must continuously educate oneself, take the risk and gain experience in buying and selling stocks.

Also read: Two Key Formulas For Saving Big Time

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