Everybody is familiar with the story of the American dream in which the protagonists with investing on the stock market become millionaires in a short time. To immediately dispel the illusion, such a thing can only achieve the most successful, the one who is ready for great risks.
However, anyone can exchange at the stock to make money he had never dreamed that he would have. And what explains this fact is a simple equation, which is called the equation of joint interest (compound interest):
Your money is equal to x (1 + i) ^ n.
If you do not really understand the math, here’s the explanation: If you are investing for a longer period of time and start investing young, the dividends you receive and profit that will create a timely sale of shares will grow exponentially. The point is that all the money that you earn will be back into stocks that they also earn their own dividends or growth. While the time passes, the earnings will be higher. And as often as you invest the dividends that they earn, you will get a larger amount of money. This equation is, of course, will be applied to the savings and the purchase of shares for trading on the stock exchange, but in the case of savings interest rate is much lower than the growth in stocks and therefore investing on the italian stock market (startborsa.com) quickly brings profits. So, investing in the stock market can accept it as a kind of ways to invest money that you want to save.
Take a look at the strategy of the world's greatest investor - Warren Buffett
This formula is called among many people the eighth world wonder, and it is forbidden in the Bible and the Qur’an, and the Ancient Romans because it was thrown out from society. However, today’s stock business is based on it and, in a condition of having enough time and patience, it definitely pays off. However, it is not all in investing the time and investment to get any further investments – big profits can be acquired with smart investments. The more you are willing to risk; your achievement will be higher.
If you are willing to lower profits, invest in mutual funds or government bonds, but it is very easily possible to happen that your income, which will be low, will be eaten by inflation. Therefore, the trading of the shares is the right thing. And investment throughout your entire life, with reinvestment every three months is the best solution for earning money. Even when the stock market is in its infancy, there will be always people who invest in it for several decades, and this person can be you. It is not easy to start, but once you enter the system, everything becomes much easier. It is important that you find a good broker, explain him whether you want to risk it or not, decide how much money you want to invest and whether it will be in the country or abroad. Persistence will pay off one day for sure!Read More