Tuesday, October 4, 2016

Buying shares is easier than grocery shopping

Buying shares and grocery shopping have a lot of things in common.

However, buying shares in the stock market is easier than grocery shopping in a large supermarket.

When you want to go supermarket, you have to decide on which one to go.  There are many national chains so you have to decide on one that has most items on sales that week.

It is easier in stock market because each country generally has one stock market.   Some large countries have a few stock markets.

When you are grocery shopping, you have to compare the different packing sizes, different brands, and the preference of all in the family.

When you are buying shares, the only thing you have to know is the profitability in term of capital gain, and dividend income.

When you are grocery shopping, you have to exercise self-control, so that you buy in bulk when the item is on sales.

Sometimes you have to check the price week after week, and mentally compile the price increase or decrease for the past year.  In this way, you will know the likely period when the item will be put on sale.

In the stock market, there are charts available for you.  You do not have to check price every week.

The similarity is that you have to buy when price is low.  That means you invest in stock market when the market crashes.  You buy groceries when the supermarket is having deep discount.

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