5 Reasons Why You Need to Love Stocks, No Matter What the Market is Doing

Good investors love the investment game. The most successful investors are very rich, yet they keep on investing in stocks year after year. They get high performance in stocks because they are doing it for money: they love the process and have a passion for investments. You should take in this secret: do not follow the money, instead follow your passion. Patience determines great things. Here are some of the reasons why you need to love stocks no matter what the market is doing:

  1. It is Always Interesting

Business is very entertaining. You can learn new things every day. Some companies get taken over while others go bankrupt. Some make acquisitions and grow earnings while others win great contracts. News can be good or bad, but either way, something must happen. You must be ready for any eventuality in the morning and accept whichever the outcome in the evening at the close of business.

  • There are Tax Advantages

Capital gains taxes usually have the lowest tax rates in most countries. You can make a good investment and take a profit. You will keep a lot of it. Dividends also come with the dividend tax credit, making dividends more preferred over salary by most investors. So while the others pay a lot of money in taxes at a salaried job, most investors are sitting back earning gains and still paying lower taxes.

  • Lazy People Can Also Make Money

This statement is very difficult to believe if you are a hard worker. But if you are the lazy type which depends on luck, then this is your field. Investment is one of the few ways that lazy people can make money. All you need to do is invest your money in dividend-paying companies and every three months another deposit lands into your account. Free money accumulates in your account every three months. If you buy the right company, you may get annual raises including dividends without doing anything.  Lazy long-term investors do very well in this industry.

  • The Math Works in Your Favour

When you pick a bad stock, you can have 100% loss if that stock goes to zero dollars. However, when you choose a high share, you can have a 1000% gain on your investment. You can lose all your investment if you make the wrong move but can make supernormal profits with your capital if you make the right guess. You can conclude that one big win can make up for the few significant losses. You can compare investment to gambling. Sometimes you make the right guess, and sometimes you make the wrong assumption.

  • You Can Make Money All Year Round

If you are employed and your company is experiencing financial strains, you may not get a raise nor a year-end bonus. With stocks, you can make money even when things are bad. You can do this either through selective stock purchases or through short selling. Individual companies such as Procter and Gamble rarely have low stock prices all year round and Procter and Gamble’s stock forecast is very promising. You will undoubtedly get good returns if you invest in Procter and Gamble stocks.

Final Thoughts Investment in stocks is one of the best industries you can ever venture in.  It can make you profits within a short time. You will never get bored with the stock market.