The stock market is one of the more traditional ways to create a profit from an investment. The stock market can produce
double digit profits compared to the return from bonds, but it is not the easiest market to take part in.
Trying to achieve 20% to 30% gains in short periods of time creates a lot of risk as well as uncertainty.
The investor would have to perform vast amounts of research, which would still not be a guarantee. This is because it is never known when a company would decide to fold or go bankrupt.
One of the main advantages of the stock market is that a person with little knowledge about it can still make a profit.
For example, knowing that blue chip stocks don't loose value, would allow the person to invest in it and still create a profit.
Another added advantage of the stock market is that it is good for long term investing. Investment trusts and unit trusts are the most popular long term investments.
