From what I can garner, ownership of a stock grants you rights to partial ownership in a company. When that company's overall value fluctuates, the value of said stock will also fluctuate, since it is a part of that company. Thus, the idea is to buy stocks that an investor believes to be undervalued and will hold long-term gains, purchase them, and hold on to them until their investment goal can be realized i.e. say I want to pay of $5,000 US of student loans within 5 years of graduation. I invest within a diverse number of stocks that I forecast will grow in the long-term and are currently selling for below their actual valuation. I hold onto them until the end of the 5 year mark, sell them for the profit I need and pay off my debt.
Is this understanding sound? Am I missing anything? After this, how can I further my knowledge of stock trading? I'm 16 years old and in high school with an allowance from my father, so at some point I can spend money on learning.
THANK YOU!
Submitted November 30, 2018 at 03:33PM by Crescive_Delta https://ift.tt/2zBCemz
No comments:
Post a Comment