How to understand the Stock Market

People make the stock market so complicated for no reason, so let's make it simple. Number one, stock equals ownership. When you buy a share of Apple, Amazon or Microsoft, you're buying a tiny piece of that company. Number two, supply and demand. The price moves based on supply and demand. If more people buy a stock than sell it, the price goes up. If more people wanna sell the stock than buy it, the price goes down. And that could happen because of earnings, the news, interest rates, or just pure emotion. Number three, marketplace. The stock market is basically a marketplace. Millions of investors are buying and selling pieces of companies every single day. That constant buying and selling is what creates the prices you see. But here's the part most beginners miss. In the short run, the market can be very emotional. You just need one headline to come out and investors panic and then the prices drop. If a company beats expectations, investors get excited and then the prices jump. Over the long run, something much more important starts to happen. How well is the actual company performing? That's exactly why investing isn't about predicting what's going to happen tomorrow. It's about owning good companies with good fundamentals and giving them enough time to grow. That's the stock market. This is the 14 day investor. Tomorrow, I'm going to show you how to choose the right investment account. So follow for day five.