Questions and answers
1. What is the investment?
Answer: Investment is using its own capital (money, time, etc.) in order to obtain a rate of return of economic activities in the future. Investment risk, high-yield often means high risk.
2. Why should we invest?
Answer: put money bank, pay low interest in treasure and not run to win the rate of inflation. Beat inflation rate, not to the depreciation of money over time is the most basic demand of investment. Second, the purpose of the investment is to obtain higher yields.
3. What conditions for investment?
Answer: investment risk, the first condition is that the investment risk-resisting ability, you can accept the extent of the risk (equities 50% --80% of the shrinkage is more common), when you want a good time to invest risk, if they vote go after the money has shrunk 80% of the daily life of their own and family's daily been affected, if only taking into account income, completely ignoring the risk to invest, then the outcome is bound to be tragic.
Second, investment conditions have spare cash, so-called money other than spare cash is the front living expenses, that is, can be used to save money. Savings also an investment in the bank. According to their risk-resisting ability to choose investment vehicles, there is low risk (bonds, real estate, deposits and low-risk financial products), medium risk (gold fund), high risk (equity)
the difference between 4 and gambling stocks ?
Gambling is a zero-sum game, one party must win to have a loser, and there are middlemen make the difference. The so-called long losing bet, according to the zero-sum game theory does not create value, long-term gambling, winning percentage remained at around 50%, it would have lost the long-term costs of gambling. Also, the individual players in the game is limited long-term gamble, while making large and infinite game play. Individual players and large, making the process of gambling there is always a moment will gambled, only to quit the game. Therefore, long losing bet.
Stocks are a commercial financing behavior, but people take advantage of buying and selling stocks for a premium. Stocks in the end is not a gamble, the key is to look at people as well as stocks than the stocks of this money. If a person knows the stock, and clearly aware of the risks, even if the money stock nor will it result in complete loss of their own very big impact, such people are not rational stock gambling.
Another, that is, do not understand stocks, and one would like to take advantage of stocks to make money totally thought that they are completely loss is how, or feel that they can not be a loss, and use their lives and need to carry on the family gold stocks, even if this gamble. Gambling stocks in a long-term nature of the process is also bound to lose, there is another way: The most terrible is that human greed, how you win money, greed will let you how it went back in. Winning makes you want to continue to win, win more, losing money makes you think back to this. Addicted to gambling, will eventually make you lose complete failure.
Therefore, rational stocks, stocks do not become a gamble.