Investing in the Stock Market is like Swimming in the Ocean

Investing in the Stock Market is like Swimming in the Ocean

Ever swim in the ocean? You wade through the surf and hit wave upon wave, until you start swimming in the ocean past the waves. At that point, although there might be some choppy waters ahead, you are past all the turbulent surf and just treading water and floating along. That’s kind of what it’s like when you invest in the stock market.

Let me explain…

Shopify (SHOP)

Right now Shopify is my best investment. I bought it on May 5, 2017. That’s more than three years ago. And I bought 100 shares at $85.25 a share. And having struggled with the stock going up and down over these 3 years, overall the stock trended upward.

Today, my investment in SHOP has yielded a return of over $100,000 and almost 1,200% profit. Initial investment was $8,525.

In the beginnings the stock seemed to struggle and I would be in the red, until the stock price began to uptrend big time, and after swimming through the turbulent waves, I found myself floating and treading in the ocean where the waters were much calmer. This is what I mean by this post’s title.

Do your due dilligence with the company you plan to seriously invest in. Look at the financials and fundamentals of the company. Then you have to determine if the business model of the company looks bright, and make a decision whether or not the company has a future, and if growth and expansion is possible.

No one can predict the future, so naturally there is some risk involved. But the best thing to do is to read as much about the company as possible to know the company through and through. Visit the website and read all the quarterly and annual reports, however boring. But visit the website to see if the company looks great. Then you’ll have to make a decision whether or not you’re investing long term.

Usually, there are many obvious choices as far as companies to invest in. Many are household names like Visa, Apple, Microsoft or Home Depot. You can’t predict the future by looking at stock charts, but you can tell if a company has been super successful by looking at 3-5 year charts.

Image by Free-Photos from Pixabay

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randomguru

Portfolio Manager & Musician

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