Investing
What is Investing?
Investing is the action of purchasing assets such as stocks, crypto, or bonds, in which one buys a share of the company they invested in. When one buys a share of a company, their share, whatever amount of money, will be affected by the performance of the company. In other words, if the company that you invested in does good, then your investment price increases. If the company does bad, the company's performance alongside the value of your investment, decreases.
How does the economy's performance affect what people buy?
The economy's overall performance can also shape the financial market. If the economy is undergoing severe inflation (increase in price of goods) due to low supply or high demand, this high demand is what will urge people to purchase investments to ensure their financial security.
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When should you trade/sell your investment?
If more people want to buy an investment than sell it, this causes the price and value of the investment to increase. If you sense that there will no longer be a demand, you can sell your stock while it still retains a value that you can somewhat profit on. Essentially when you investment hits your price target and or will soon decrease, you should sell your investment. This works for both traders, who look for smaller, more frequent profits from investments they buy (and sell even if it gains the smallest bit of profit) and investors, who seek larger profits from investments.
