Investing is a very broad concept. We can invest in stocks, cryptocurrencies and we can also actively trade. Even by investing in stocks, you can not only earn on growth, but also on dividends. And with happiness up to 10% per year. So is it worth investing at all?
Investing – How to do it?
When I enter the exchange, first of all I have to set my goals clearly and what I am going for. If I start investing in stocks, I will just buy stocks and I will not try to actively trade at any cost, or even do trading. If I invest in shares for the purpose of collecting dividends, then I do not address the current price, but the remuneration from dividends. If I trade, I have a clearly defined system and I only trade for a certain period of time. I certainly do not confuse these investment options, otherwise it becomes chaotic gambling. Of course, you can trade more systems at once, but it is better to have more portfolios that have their goals and clear rules. However, I never open one swing business, another because of dividends, because I will gradually get lost in it and I will not know what my goal is.
So why invest?
First of all, it should be mentioned that most of the well-known stocks of giants are constantly growing and there are a relatively small number of investors who are at a loss. And even if someone is at a loss, they most likely made the same mistake I wrote about above.
If we invest in a share, it may happen that, for example, after a year I find out that instead of the purchased one share of Apple in the account, we have 1.1 shares of Apple. This is because, as credible owners, we receive dividends. This amount of rewards can accumulate all the time, and we’ll find out later that we already have 2 Apple shares.
Most investors go to the exchange in order to generate a passive income and live a free life. And that’s exactly what investing is all about. Gradually accumulate capital and invest more and more. If we set aside EUR 100 each month and gradually invest it in various stocks that are growing, then not only will the value increase on the basis of the money invested, but also the value of the stock will mostly increase, we will also receive dividends. Later you will find that in a not too long time it will reach 100,000 USD, from which you can really do something. According to the largest stock index, stocks grow by more than 10% on average each year. And that’s not counting the dividends that can add another 2%. 12% profit per year with a capital of $ 100,000 can already be a nice amount.