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Top 10: Why You Should Consider Investing In The Stock Market

08 Mar 2011 at 09:35hrs | Views
No.10 Trust the experts

Thomas says: "The value of information is what people are looking for. Pricing and timing are two tools in the industry, as a whole, that determines whether you make money in the stock market or you don't, and they rely on financial professionals like ourselves to determine if the time is right for them to invest or not.

I think that's where individual investors look for in today's age. The unfortunate thing is that Wall Street was never about credit swaps or derivatives; no-one knows what that means."

No.9 Your investments make a difference

Thomas says: "The best thing about being on Wall Street is a special thing called 'capital formation' -- helping to fund companies that make a difference to the world.

Whether it's biotechnology, technology, or silicon valley companies like Google, Apple, Microsoft, and now Facebook. Facebook was started by an innovator -- Mark Zuckerberg -- but he got funding by guys from Wall Street, to start his company. I think that's where we feel we make a difference by raising capital for young up-and-coming companies that can make a difference in the world that we live in today."

No.8 Investing in the stock market can be exciting

Thomas says: "The energy level portrayed in Wall Street: Money Never Sleeps was correct; it's a very intense industry. We're in a global market now, so people are working almost 24 hours a day, keeping up with all global markets around the world.

You definitely have to have a lot of energy, you have to be very persistent, and you have to be very tenacious in going after what you believe in."

No.7 'Greed Is Good' No More

Thomas says: "The 'greed is good' mantra, back in the 1980s in terms of -- 'look at all the money we made' --  I think that's where greed came in. Everyone always has a little bit of greed in them to make more money.

Everyday, traders have that in them, as do investors -- they want to make a lot of money in the stock market, but do they want to make 10%, 15%, 20%, or 30%? Some like that, but some like to make 80% So that's where the greed factor comes in. No-one should have the greed factor when it comes to making an investment."

No.6 You can invest as little as you want

Thomas says: "We always look at the risk profile of the client, and what their risk appetite is -- what is their tolerance for risk? Some investors like very conservative investment.

If they like their 10%, they don't want to take any risk, they don't care about being aggressive, and they're happy with making 10% -- that's good for them. Brokers will understand this."

No.5 Or you can invest as much as you like

Thomas says: "Some investors like aggressive investments, they want to be involved in the next Google, and that means putting your money in a start-up company which has no track record, but that has the ability to become a global conglomerate.

That's where having the risk profile of the client makes a very important difference for us. If he's aggressive, we can pick an aggressive investment for you where you could make 10, 20, 30 times, or more on your money."

No.4 It's a good time to invest in the stock market

Thomas says: "It's an extraordinary time to be investing in the stock market now. We've come through the economic downturn, and the economy is in recovery.

I think all the innovation comes from the United States of America, and I think it's the place to invest now, more than ever, because the opportunity is very compelling, versus overseas. I think now is an extraordinary time to invest in the market."


No.3 Look beyond the stock market for trends

Thomas says: "The global economy has an effect in the stock market, there's no question about that. Everyone wakes up in the morning and puts on the news, whether they get up at 4am or 6am, right? If they see that Greece is defaulting, they're thinking -- could there be a spill over effect into other nations? What is this going to mean? Is there enough money from the European Central Bank to fund these countries to get out of their mess?

People get uncertain, which causes selling. So I think overall people are very aware, they watch carefully what happens overseas, and it directly reflects the momentum in the markets."

No.2 Investing in the stock market isn't gambling

Thomas says: "People make investments in the stock market. If you want to gamble -- go to Las Vegas. In the stock market, people make investments. Do people make more aggressive investments? -- Yes. But I wouldn't consider it gambling."

No.1 You can make history

Thomas says: "If you look at history, going back to the beginning of time, the stock market has always been a great vehicle for people to create wealth.

I think people should look at what has gone on in the overall picture from the first day that the market has opened, the way it has effectively created a global economy. I think it's a great place for people to invest money and make money for their families, to change their lives their."

Source - ASKMEN
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