Sign in
Download Opera News App

Economy&Finance

 

Investing

 

Stock investment

Two Strategies To Create Wealth From Stock Market

Image Credit: Google

The stock market has been known to be the biggest wealth transfer asset for many years and still keeps spinning money for those that know what they are doing. There are two strategies to create wealth from the stock market.

AS THE PRICE DROP BUY MORE

When you buy a particular stock and the price drop, never panic at that point, you need to know the kind of drop and its impacts. If it's a minor or major one and causes of the price drop. If it's a slight one and not so serious, it's an opportunity to increase your stakes by buying more units of the shares at that discount price and it means you are averaging down your losses. This will help you reduce the initial price you bought it. Once the price bounces back in the short to medium term, the value of your money increase, creating wealth for you. For example, if you buy FBNH shares for N10 and it drops to N8, it's an opportunity to buy more. With time, it bounces back to N10 meaning you have bought more for less to grow money.

AS THE PRICE GOES UP, SELL AND COME BACK TO BUY AGAIN WITH THE SAME AMOUNT OF MONEY.

When you buy a stock and hold it for a long time and suddenly the price starts going higher, it's the right time to sell with your target price in mind. A penny stock you bought for 80k can become an extremely fast-moving stock with the price increasing to N3 in two weeks. To create wealth, you need to sell it and take your profit faster. Watch the stock to study price movement, if it slides down to a considerable amount, you can buy it back for a lesser price, buying more units with bigger stakes in the company. Once the price skyrockets again, you can sell off at a great price to create massive wealth. For example, if you bought FBNH stock at N6 and the price skyrocket to N12, sell to take profits. Watch it slide to a considerable price to re-enter back and watch it go up again to make money.

Image Credit: Google

Content created and supplied by: RAWLINGS10 (via Opera News )

Google

COMMENTS

Load app to read more comments