What Are The Pros And Cons Of Financial Investment

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Investing successfully is the key to reaching one’s long-term goals. Whether one has some money set aside to begin investing, or one has just come into a large lump sum of money, there are many ways to go about investing the money. There are several mainstream ways to invest that can work for both professional in the field or a novice, but one needs to weigh the risks associated with the probable gains. The point in the many ways to invest is that, no matter method one chooses to invest, the method should work so that it can earn one additional profit.
There are several methods of investing one’s money and these include the company stocks, certificate of Deposit, mutual funds and bonds. Pentheny G. article “analysis of stock market investment strategies,” …show more content…

Stock market crash is a sudden decline in the average price of the stock
3. The crash of the (NYSE) in 1929 caused the great depression and the recent crash in the 2008.

II. Pros and Cons of financial investment
A. Cons of financial investments
1. Success of stock market is partly attributed to luck
2. Poor investment decision can lead to loss of vast amounts of money
B. Pros of financial investment
1. Intelligent decisions can yield significant capital gains and security
2. Analysis of trends in the stick market can lead to success of an investment
III. Shares of stock
A. Public trade through stockbrokers since the general public is not allowed to trade stock in the NYSE
1. The internet facilitates information needs by customers to trade stocks.
B. Return on investment of stock
1. Stock market depends on logical decisions, facts, and gut feeling.
2. Relative unpredictability of the stock makes it the most popular investment decision among private investors.
IV. Trading strategies of the stock market
A. Day Trading
1. Involves the strategy of buying ad trading a stock within a day
2. Relies on the daily fluctuations of the stock values
3. The internet facilitates day trading
B. Swing

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