Investing in the stock market seems to be one of those jobs that everyone envies. After all, you’re basically shifting money around and pocketing some of it for yourself. You make money off other people making money, so everyone’s happy at the end of the day–right?
If you’ve been following recent events then you’ll no doubt have learned about the millions that people have made from GameStop stocks. Without going into too much detail, it was essentially a rebellion by Reddit users to raise the prices of a shorted stock so that hedge funds would be forced to buy them back and suffer huge losses. This was essentially a way for many people to vent their anger at the rich and stick it to them.
However, while many people profited off it, the stock has since plummeted and it was clear that there was a lot of intervention by these rich elites that helped to crush the surge. For example, several trading platforms disabled the buying of GME and Google even removed many negative reviews of the offending app.
So with all of this in mind, is investing in the stock market a bad idea? Is it clear that it’s just being manipulated by the rich and wealthy and everyone else is just along for the ride?
Investing makes sense if you believe in the brand
A lot of people try to invest in order to make money. They want to become day traders and shift stocks around to make a living. Unfortunately, this is a big investment mistake if you’re just getting started. You really need to have a lot of money if you want to make money, and this is sadly not possible for most people.
You can try to trade less expensive stocks to try and make money, but there’s always a possibility that you miscalculate something and end up losing all of your investment. That’s not a good place to be, especially if you’re not doing great with your money in the first place.
Instead, a much better approach to investing is to actually put your money where your trust is. If you truly believe in a brand and are willing to support it, then there’s no problem investing in their shares if they’re a publicly-traded company. Companies such as Netlinkz have much more stable share prices and they’re less likely to attract the attention of big investors that can manipulate the price.
At the end of the day, if you believe in a brand, then you can show your trust in them and invest. This is arguably the best way to approach trading–by buying into brands that you truly believe in and want to support.
Investing isn’t gambling, but you need to be well-informed
Trading isn’t for everyone. It’s going to be out of your element unless you’re well-informed and you’re either going to end up losing money or making a lucky investment that pays off. For example, there are many people that cashed out during the GME situation and they ended up making a lot of money.
However, that still isn’t a get-rich-quick scheme and now that the price is plummeting, it’s clear that a lot of people have lost money in the process. Investing in the stock market might not be a bad idea, but thinking of it as a way to get rich is a quick way to lose your investment.