Should I Be Scared of Stocks?
You can’t enjoy the quiet of your home? You are not sure whether you are just about to throw money away to the dogs, or equally just about to make the investment of your life? You do not see where it all goes or how the system works?
Your answer is a short one. In fact, yes. There it goes, yes, you should be scared of stocks. Well, more accurately, it all depends. It is all relative. It is like gambling. You could always win, you could always lose.
The best-case scenario for buying stocks
The best-case scenario for investing in stocks is when you have taken a long time studying the market trends. You have a clear understanding of how the global currencies tend to shape their paths and you can also see the market analysis in retrospect.
Even though it is always a gamble, you stand a really good chance of always cashing in. You greatly increase your chances of “winning” a game when you have more facts about it.
The worst-case scenario
It is better to invest than to settle for guesses and trends you cannot ascertain. Inflation and deflation is a matter that can be decided in a matter of moments and you would make a killing or feel like killing yourself. It all depends, it is always about odds.
When you don’t understand what it is you’re doing or why you are doing it, you raise your chance of being a victim of fraud, exponentially. Fake brokers need to feed their families too, you know.
What then should you do if you’re scared of stocks?
Now that we all understand a little of what investing on stock market entails, here’s what we should do.
You should understand that not all success forex stories are true. Many are make believe stories, for if it were that easy, we would all be millionaires now, wouldn’t we?
Make sure to learn the ways of the trade. Learn to recognize changes and to make educated guesses that aren’t based on whim, but on calculated probability.
Just because you fall in this category does not mean that you lack faith or that you are a killjoy, it only means that you like to be very practical. That said, you could always invest in physical property. You don’t have to understand how stocks work when you have assets on the ground, or services that flow income steadily.
If you still want the chance of investing virtually on something. You have the option of more stable stores of value such as gold. Yes, you can invest in gold. It is highly unlikely that any currency can equal gold as almost all currencies were derived from gold, to represent it. Second, the inflation the world is about to see will be on a major scale and it would be in vain to invest in all the fiat currencies around.
Like the way history repeats itself, currency will prove to be merely pieces of paper when they keep losing their purchasing power, everybody will lose faith in them and drop them for gold. You can only imagine what the investors of gold would feel like at this moment.