Shares/Stock Buy stocks or save money in bank ?

[greenieS]

Again, I come back with a topic that is quite discussed on the internet, where there are people who support both options. I want to hear your opinion, possibly an experience. Do you think it is more profitable to buy stock or deposit a sum of money in the bank?

Both have certain risks, but they are slightly different, depending on what you are looking for. In the bank if you deposit money, you will have a FIX commission per month, it will not change until the bank goes bankrupt (if it ever will be), instead in a share in a company, the commission is dynamic depending on sales . So, in one month you can have some good money, but in another month you can take nothing because the company is at a disadvantage.

What do you prefer between these 2 options?

Would you risk the stock with the thought that it will grow enormously and you will make a nice profit or will you be satisfied with a fixed monthly commission?

 

[Deleted member 28127]

The stocks action is a kind of bank account means for businessman or businesswomen they prefer to open a kind of account for stocks action means the money saved is intended to buy stocks because save money means lack of winning or lack of earning because if you invest this money on stocks trading you may grab profits but if you let this money not invested you will lose this profit and consecutive loses means you are losing value of your earned money as their personal point of view. Add to that you have to save some assets in case you may lose most of your funds you have some saving for this kind of situations.

 

[moonchild]

I'd rather buy stocks than to save money in my bank account, because if I save money in a bank account, the bank will use my money to trade and I won't make anything so I'm better off buying stocks because I stand the chance of earning money when it comes to stocks.

I think stock trading is more of Forex trading, the char, candle stick patterns etc so I don't think I'll learn from scratch if I decide to venture into stocks trading.

I've seen a lot of books on stock trading and I think it's ideal to read a book before going into stock trading.

But one is better off trading stocks than just keeping money dormant in a bank account

 

[Alexandoy]

I am a fan of saving money in the bank because it is the safest way. However, you need to be sure that your bank will not go bankrupt. Just recently I got involved with stocks and now I am trying to learn as much as I can about trading. It is clear to me that the stocks is much better than the money staying in the bank in terms of value. The money in the bank is going to be eaten by inflation while in stocks the price goes up when there is inflation. Veterans in the stock market say that stocks are fluid when it comes to the value vis-a-vis the economy. That means the price in the market goes up and down depending not only on the law of supply and demand but also on the condition of the economy. Maybe this is a long discussion so I will not continue anymore.

I did my research in the bank deposits and it is dismal when it comes to the interest rate. My deposit of $10,000 will earn 1/2 % per year which is just $50. That amount cannot even cover the cost of a night's stay in a good hotel.

 

[pegg]

Money in bank is an awful use of capital unless you might need it in the short term

 

[btaliat]

To be honest, I don't like saving money in banks. I just detest keeping in banks. I see it as a way of wasting money. I don't like keeping money idle. That's why I will prefer investing in stock. At least if the price goes up, it may be of benefit to me. But I don't have anything to gain if I keep money in banks.

 

[Caramelle]

I don't really have to choose between these two options because I can do both. I believe that it is safer to keep a certain amount of money in the bank that can serve as your emergency funds. As such, you are not supposed to touch it for non-emergency purposes. Many financial experts suggest setting an emergency fund that will sufficiently cover six months of your living expenses. After that, you may invest your funds in a variety of income-generating assets or businesses. Stocks are just one of those assets, and it is one of the easiest investments to get yourself into. Unlike real estate, you don't really need that much amount to start investing in stocks. This is the reason why many young people and professionals start thinking about investing in stocks as soon as they start earning money. Trading apps make it more convenient to invest in stocks.​