Why do I like investing so much?
Investing in the stocks, pharmaceuticals, or whichever branch you decide to invest in can be quite the shaky journey. When you initially invest, you never know if it really pays off, or if it was all just wishful thinking. However, there are quite a lot of people who thoroughly enjoy that risk, as do I.
One thing which is important to understand is how to calculate the burn rate. Now, what this means is how fast a company wastes money versus the amount of money invested in it. Personally, I look at how the companies I invest handle their budget. I always check if these companies have enough funding for a proper operation for the next thirteen to eighteen months.
The other important thing is to locate the proper convertible debt. This is all about locating stocks which have as little convertible debt as plausible. If you’re wondering what a convertible debt is, it is a debt which emerges when a company borrows money from an investor, in return for the suitable rights in to purchase stocks, often at a reduced price.
These two key points are what I learned starting out with investing, as there are quite a lot more information and value to learn throughout the whole process. What I would like to essentially leave you with is the value of always doing your proper research when it comes to investments, along with any other form of investment because once you’re in — you’re in. Also, once you’ve already laid money down with a lender or even on a specific stock, you have to ride that wave out, regardless of the consequence.
If you do not know the basic trade and skills which are required before you make that jump, do it at your own risk — because investing is a serious and very skilled trade. If you’re not prepared and do your specific research regarding certain trades and companies, you will definitely sink.