Minimize risk…

The stock market is one of most efficient way to grow your wealth. The best way to learn about the stock market is by researching stocks and taking a course and/or reading a book to learn the fundamentals before investing. You can consider investing in index funds which automatically allows you to diversify and minimize your risks and losses. There are two types of investors: long-term and short-term. A long-term investor buys shares and holds them for a long period of time over a year or more, while a short-term investor buys shares and sells them after a few days, weeks, months…so less than a year. Investors earn profit when they sell their shares at a higher price than what they bought them for, but they can also incur losses if the price falls below what they bought it for. The key is buy low and sell high. The end goal is making a profit. I remember holding on some losers (stocks that is) some took months for me to recover and break even. You need to know when to hold on and when to cut your losses.

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