Scared of investing in stocks you need not

Many persons are scared about investing in stocks but they need not be that afraid even as markets have gone through major changes since 2007. It is not only the stock market that felt the impact. The real estate market that many swear by, suffered declines as well as demand for real estate worldwide fell.
The Jamaican stock market has languished at a low level, since 2008 when it fell to 60,952.64 on April 28, 2009 from an all-time high of 138,917.59 points on January 24, 2005. Since then, the market regained a fair amount of what it lost by moving to 118,353 points on February 2008 but fell sharply in the second half as a result of the year, in response to the world economic crisis and Jamaica’s response to it. The market has moved up from the low, but has struggled ever since as Jamaica underwent changes in government, several major economic policy shifts and long periods of uncertainty.
Knowledge matters|Like anything else, having knowledge will be a big help. For starters new investors can take simple steps. Follow some simple rules. Never get emotional about an investment. Don’t follow hypes and fads. Keep it simple. The best way is to start the investing small amounts that one can allow to stay invested for a long time if needed. Invest in good quality companies with long term prospects, with time and more knowledge, the time frame can be shortened if the investor is comfortable.
Profit drives stock prices| A good place to start, is the financial statement of listed companies. Most carry a ten year table of historical results. The simple approach is find companies that have regular increases in profits over time. Keep this most important investment adage in mind at all times, increased profit is the major driver of stock prices. If profits keep on rising stocks prices will eventually respond. Quarterly profit performance is also important. If an investors can find a good investors who knows the market, then they can get advice from them but having more than one opinion is always useful. Keep a journal, indicating what advice is received and by whom and why you are investing or not. That will help you to know who ca be relied on as well as let you understand what causes stock prices to move. All in all to become successful at investing practice becomes perfect.