Advantages And Disadvantages Of Investing In The Stock Market

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Investing in the stock market or investing in a business?

Investment options are always huge, so agree analyze very well where we will invest the savings or money that we have. The investment is the way to multiply the savings (postponing consumption) so anyone should think a little what to do, according to your investment profile, investor or the type and amount of risk you are willing to face.

We must never forget that the profitability is linked to risk, the more you want to win, the more you can lose. This is a good way to introduce the question: invest in the financial markets or invest in a small business? There are similarities and differences in these two ways to invest as well as advantages and disadvantages.
Similarities

In the two alternatives we are investing in
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We are at the mercy of speculation, news, rumors, short in every way they do vary the value of the share price. One of the tools to be able to succeed in these markets is called technical analysis although the performance on the stock exchange can be made based on fundamental analysis.

For its part by investing in a business or own a small business, we have the business management in our hands, with the pros and cons that entails, but the truth is that usually we who decide. Business management knowledge can be greatly missed, however many successful entrepreneurs have created their own knowledge and even without large studies have built great empires.
Advantages

The act of investing in the stock is fully dematerialized, may invest yourself from home using a brokerage account, internet connection and a computer. You can invest in the comfort of home and also does not involve human contact, which can be seen as a benefit, dealing with people is not always easy

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