Why You Should Invest in the Stock Market

The stock market is one of the most lucrative markets of all time. People are allowed to buy and sell stocks as many times as they want. What a stock is exactly is a piece of a company. If you own a stock in Amazon then you own part of the Amazon company. Sadly, you won’t have a say in any of their internal affairs but you will be able to gain money as their company increases. Millions of people invest in the stock market every day–and here are 5 reasons why you should as well.

 

You Can Make a Ton of Profit

If you’re smart about investing, you can more than triple your net worth while you sleep. Imagine if you had owned one stock of Amazon back in 1997 you would have invested $1.50. That doesn’t sound that impressive. But, if you held onto that stock for the next 20 years, that one stock would have increased to $1990 today. If you’re not quite following me, that would mean that you made near $2000 off of $2. I’d say that would be well worth it. Let’s take that analogy a step further and say that you invested $100 in Amazon back in 1997. You would now have made $199,000. The more you would have invested, the more you would have now.

 

Moral of the story: invest now. You could be holding onto the next Amazon stock.

 

You Don’t Have to Put Every You Own Into Stocks

I know that you’re now incentivized by the possibility of making a lot of money off the market. You might be thinking that now you want to start but you don’t want to invest $10,000 all at once. You don’t have to. Start small until you know what you’re doing. Companies like Options Animal offer free courses to explain the market to you. They can walk you through the logistics of investing in the market and help you know where to put your money. Maybe you just want to start out with $10 in stocks. That’s fine. You’ll still come out with double that in a few years.

 

The Market is Forgiving

You may hear horror stories about how someone lost $100,000 overnight because of a stock market crash. And, yeah, that happens. But the market is forgiving. It always comes back. If the market falls it will rise. Sometimes it will take time to rise back up but you probably weren’t going to use that money you put into stocks any time soon anyway. Leave your money where it is and let the market recover. Once it’s back up to where it was, you’ll be back to making money.

 

The market has ups and downs every hour. If a stock is making you question it, then sell it. It’s easy and simple to get rid of a stock that you no longer want. You’re never stuck with something for any longer than you wanted to have it around. And always remember that the stock market is designed to go up over time.

 

Investing in Stocks is Better Than Investing in the Bank

When you put money into a savings account in the bank, they will give you interest every year on that money. Usually, it’s just a couple of cents to correct for inflation but sometimes you still lose money on inflation. Banks aren’t going to over-correct for inflation, if anything, they will undercorrect. So while your money is sitting there, it’s losing its value. No one wants their money to lose value. How can we fix that? The stock market.

 

The Stock market will definitely over-correct for inflation. Rather than making 2 cents a year in a bank, your money could make $10 or more a year. And again, that’s just for letting it sit. If anything, think of the money in the stock market like a new savings account. It’s the money for your future retirement. Then you don’t have to worry about wanting to reach in and take it all out. But now, rather than it depreciating over time, it’s gaining value.

 

Invest in the stock market. It doesn’t have to be much at first but at least give it a try. Let your money work for you rather than work for your money.

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