[范文] The Elements of Stock Investment
With the rapid growth of the Chinese economy, investment is becoming an increasingly important economic channel to promote economic growth. But for ordinary people to decide their investment in a stock market, several elements must be considered.
The most important factor is profit. People always want a maximum investment benefit. The primary principle of stock market is buying at bottom and selling at a high point. Actually, a high point does not always mean a climax of a year. And if people abide by this principle and keep a higher velocity of money transfer, they can gain more margins. But some people prefer a long-term investment. They buy stock at a low point, and then just hold it and wait for a long period. In fact, these people are capital investors rather than money operators, because they only favor the companies in which they have invested. But they should know, benefit and risk may increase simultaneously with the fluctuations in a stock market. Therefore, it is better to sell stock at an expected point and put money in their pockets with which to wait and choose a new low point.
Secondly, people should invest money into different stock markets based on their income, which decides not only the selections of investment, but also the amount of investment. Generally speaking, the money that ordinary people have for investment is limited, because most of it is from their salary earned on the job. It will certainly restrict these investors to allocate their money in well-diversified companies. No matter how much money can be afforded, however, diversity is a golden principle for investors to transfer the risks.
The living consumption, the psychology in investment, the investment environment such as national economy, political and military policies, are all included in the elements of stock investment.
To be good at stock investment, one has to learn all relevant knowledge.