How to Invest in Stocks: A Step-by-Step for Beginners 2020

How to Invest in Stocks: A Step-by-Step for Beginners 2020

Written by: PaxForex analytics dept - Thursday, 05 March 2020 0 comments

Before you buy shares, you need to understand why you're doing this. It is clear that your goal is to make money, but how much and at what time? And what will you do with the money? Perhaps you will think "why is it important to know before you buy shares"? The fact is that you can buy shares of the Coca-Cola company and receive 10-15% of annual income or you can buy shares of a biotechnology company for the development of pharmaceutical and cosmetic products and earn more than 1,000% per year. Many believe that investing in Microsoft or Google shares is reliable, but these companies already cost billions of dollars, so what do they need to do to double the price?
Let's start with the obvious - dividends. This is certainly not the main way - dividend return is not very high, but as an example: the value of one share of Procter & Gamble Co - 66.20 dollars, and dividend return + 3.17%, i.e. 2.1 dollars. Therefore, by buying 15 shares for $1,000, you can get your 31.5 dollars. If the shares have grown by 20% during the year, plus 3.17% will be a great bonus, especially this money you can reinvest and next year you can get even more profit in monetary terms. Using this type of earnings, you can have a stable income, which will increase every year.