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Testimonials

Great site Kenny.

Technical Analysis written in a straightforward way so that everyone understands.

There's only a small few who get it consistantly correct and you are certainly in that group. Chris


Thanks for putting this all together and sharing! BHW



Awesome Stuff! Kenny has shown time and time again the ability to show us direction in these markets. Khalsa



Kenny, I appreciate your insight and analysis. You make sense of what I can rarely see.

Thanks for sharing.
Gene
 



Took a gold short at 1240 just closed at 1203 :-)))))))))))))))))) ........ top call!!  Gekko

Why Buy Stocks and Shares

The Stock Market Basics For Beginners

Why Buy Stocks - Advantages

Why buy Stocks and Shares? Wouldn't you just be safer putting your money into a savings account and letting it grow form the interest you would receive?

Well perhaps it would be safer, but recent events have shown us that even that is not foolproof, however,  the main reason for investing or trading in the Stock Market is to try to maximize returns on your savings. Income from investments can provide a very healthy supplement to your regular income or pension and for some it can be a means of earning a living too.

Some stock markets saw quite a lot wiped off their values following the highs in 2007 but the statistics suggest that over the long term, Stocks generally, have been the best form of investment and some of the top traders were telling us pretty much near the lows, that it was the best time to buy stocks.

From the low in Mar 2009, in less than a year, the Dow Jones Industrial Average (DJIA), Ftse 100 (UKX) and Standard and Poors 500 stock indexes all gained 50-60% so as you can see, even in times like these there are opportunities and fantastic returns to be made from trading stocks and shares.  

Why Buy Stocks - Dividends

Another important consideration to take into account of why to buy stocks is that owning an ordinary share of a company usually entitles you to a share of the profits. Many companies that make a profit will reward its shareholders with a dividend payment as a means of distributing those profits to shareholders.

Dividends are commonly paid twice a year. An interim dividend and then a final dividend based on their profits for their financial year.

A company can also pay out a special dividend as a  one off means of returning surplus cash to investors.


Why Buy Stocks from a discount broker,a  low comission broker.

Why Buy Stocks - Shareholder Perks 

Many companies will offer their stockholders additional perks or discounts. They use this to as a means of encouraging them to use the companys products and to hold onto their shares as a long term investment, thus helping to maintain stability on the share price. This should not be considered on its own as a reason for buying any particular stock but it can be an added bonus and is another reason why buying stocks can be worthwhile.

For example

Anheuser-Busch who own and operate a chain of theme parks including Sea World and Busch Gardens offer a 15% discount on the regular admission price to some of its parks. You can also get 20-30% discount on orders from their promotional products catalog.

There are many Shareholder discount schemes like this one from all around the world and some of them offer these to shareholders with as little as one share. Others will stipulate a minimum number of shares required to be held in order to receive the discounts or perks.  

Why buy Stocks - Risks

The obvious risk is the worst case scenario where the company that you hold shares in goes bankrupt. As a holder of Ordinary shares you would be very unlikely to see any of your investment returned to you.

You are bottom of the heap and once everyone else such as the tax man and any creditors or customers that have paid money for goods they did not receive, all get a share of anything salvaged from the sale of any assets the company had, it is very unlikely for there to be anything left for you.

Even in the good times, the stock market can be very volatile and share prices can move against you quite substantially in a very short space of time so it is important not to invest anything that you can not afford to lose or be willing to tie up for any length of time.


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