Equity is without a doubt, one of the greatest tools for building wealth. Stocks must be a part, of nearly any investment portfolio. Over the last decade, the average person’s interest in the stock market has grown exponentially. This demand coupled with innovation in trading technology has opened up the markets so much that nowadays it is very easy for anyone to buy and sell stocks.

However, despite their popularity, most people don’t fully understand stocks. People think that stocks are the magic answer to instant wealth with no risk. The only solution to this is education. The key to protecting yourself in the stock market is to understand where you are putting your money or get a financial planner/analyst to handle your equity portfolio. Stocks are generally considered riskier investments and require a higher rate of return. You can lose all of your investment with stocks. The flip-side of this is you can make a lot of money if you invest in the right company. Make sure you don’t get into the market before you are ready. Be conservative and never invest in anything you do not understand. Before you jump in without the right knowledge, think about this old stock market saying:

Remember Bulls make money. Bears make money, but pigs get slaughtered.