So lets start with what stock is.

From the company's point of view. Lets say you need more money so that you can do more stuff. One way that you can get money is by asking a someone for it. But instead of taking a loan, you offer them part ownership of your company. Now imagine doing this on a large scale. You basically let everybody know that they can own a part of your company by giving you money for it. Benefits include you sharing in their success.

From the investor's point of view. Lets say the company is worth $100 and you bought $10 in stock. You now own 10% of the company. After a year of operation the company does well and it is now worth $200. You now own 10% of a $200 company. So your investment is now worth $20. You doubled your money by doing nothing.

They same woukd apply if the company made a loss. Say it is now worth $50. Well you now own 10% of a $50 company which means yout investment is worth $5. You lost $5 by doing nothing again.

Now for a stock investor to be successful they have to try to make more profits than losses. They do this by investing before the stock price goes up (company worth) and by pulling their money out before the company stock price (company worth) goes down.

To be successful they need to successfully predict what the future performance of the company would be like. This is why there is such a need for urgency with lots of shouting amd cocaine.

Here is an example. Lets say that you just heard that nintendo was going to release a new console after only releasing minor improved models over the past decade. They have been doing very well with stable profits with with the same old models so you expect that they will do amazingly well with the new console. So you rush to buy stocks before the company worth goes up and it cost more to buy that same percentage (or share) of the company.

But wait. You realised that they announced this in a internationally televised. That means millions of people around the world are going to have the same idea as you and try to buy in. Which means that demand for that stock would increase. And demand increases the value of what is being sold. So that means you cant wait for the release of the console to invest. You need to invest before everyone else does as well. And the earlier you invest is the more profits you will see.

To use the example before. Suppose you invested when the stock was rising from $100 to $200. But you bought 10% when the company was worth $150. Then you spent $15 for 10% and at the end of the year you only got a $5 increase in your investment. Thats a 33% increase as opposed to a 100% increase because you invested late.