Lotto. Yes, Lotto. It is something that you love to take a shot at. But the Lotto is like a Leprechaun. Even if you finally win a lottery, you’ll probably lose all the money, in the coming years. The lottery is risky and the chances of you winning are so less that even being struck by lightning is more of a probability.
Everyone starts with the small lotteries. They go for $1 lottery or $3 lottery, and soon they feel that they must go for the bigger ones. That is when the ‘Win it all or Lose it all’ is applied. Bigger lotteries ask of you to buy their expensive lottery numbers and you often go forward and buy more than one or two lotteries to assure yourself of greater chances.
But this means you are putting in a lot of money in something which is purely based on luck and in an investment from which you have almost a million to one chance of getting that million dollar return. And by this you almost always watch the winner and the lottery organizers have the last laugh while you see your money go down the drain.
Then there are lottery winners who probably win big lotteries and become so careless about the tons of dollars they have in their possession that they spend it all up in things which will never help them in the long run. It is a finance fact that almost every lottery winner, after ten years of winning a big lottery, ends up more or less in the same situation before they had won anything.
Over the years there have been too many people participating in lottery competitions. Out of every four Americans¸ one claims to have met a lottery winner. And multimillion dollar lottery schemes and wide propaganda create a sort of euphoria in the market, in groceries, in gyms, in medical stores and almost every other place you’d go.
This makes more and more people have a shot at the winning ticket. But this only makes it more difficult. The number of contestants doesn’t grow by hundreds or thousands, but by millions. More than 65% of Americans have participated in Lottery games. Everyone enters a lottery with a high hope of winning it even though they know the truth. And they end up losing all they have.
Well, this habit of spending can be replaced by the more financially and logically sound investment in the stock market. The stock markets, unlike lottery tickets, are not based on luck. In a stock market, you can buy a particular share of a venture or anything that is sell-able and you can, over time, be repaid with much higher amount of money.
Let us look at a person who has benefited with the most from the purchase of a share. This is about a painter who painted the popular social networking site Facebook’s office in California. This wall painter, when given options of being paid in money or be given a small share of Facebook’s massive wealth, he opted for the latter. At that moment, the share he was given was very small.
But when recently Facebook went public, the painter’s share multiplied to a whopping $200 million. He didn’t even know of this share up until he saw his name in the newspapers and on the television. Probably, he’d never have to work ever again.
Well, you can do the same by investing in a stock market. You can probably invest in small caps stocks. This will ensure that you have a slight risk in it and more chance of earning profits.
But before you invest in any stock market, you must do a lot of research. This research includes learning about various stock markets, the difference between each stock market, the situation of each market, the credibility of the company whose share you’re purchasing of, genuine strategies for better investing, financial background of the firm etc.
Companies are categorized by their Capitalization:
A company’s size is measured by Capitalization (Cap). Companies are also classified by their capitalization. If the market cap of companies is between $10-200 billion, then are classified as Big/Large caps.
If the market cap of companies is between $100 million and $1 billion, then they are classified under Small caps. Small caps are more promising of big returns but carry a higher rate of risk with them. It is wise to invest in small caps companies as if they are found with potential, their market rate will only increase and so will the monetary benefits of your share.
Hence, in conclusion, it is always wise to not depend on vain luck and lose all your hard earned money and better to invest in the stock market and legally and wittingly continue gaining huge profits.