Becoming Rich- Is the Stock Market your answer?
Stock market investment is a common way for people to make a lot of money.
But here’s the same old question… is it at all possible for a newbie? Well, the answer is – YES.
In fact, anything becomes possible when you make the right moves.
Through the past and present of the stock market, you probably have seen numerous traders or investors who started off really modest, but managed to gain incredible success. But is that the case in general?…..NO! The majority of the enthusiasm ends up with big time failures.
What causes that?
Very simple. These enthusiasts wanted to become rich but didn’t follow in the footsteps of the rich and successful. If you look deeper into it, there is more than one reason that sets successful stock traders apart from those who struggle. Again, the answer is simple… Successful traders have mastered the art of risk taking!
Here’s an example. Say you’re watching a broker or a financial analyst (or maybe an anchor) on CNBC who’s giving you some ‘idea’ on where your money should be invested. Chances are high that this dude will spend the whole show talking about big companies – but everybody knows these giants, right?
The truth is investment in giants such as Microsoft, Amazon or Dell… doesn’t really pose a heavy inherent risk. Well, you can actually debate over this, as there were hardly any analysts who wouldn’t recommend companies such as Enron before they collapsed.
So you should pay attention to how and what made those stock traders rich. To your wonder you would notice that their success didn’t come off buying big shots like Amazon. These winners got rich by investing in companies like Shell or Dell, when they were relatively unknown!
So the story behind their “becoming rich” is simple – they took their chances on upstart companies that have a promising idea plus excellent management to bring that idea into reality.
Undoubtedly, your investment in well established companies is a good way to make steady growth (usually 7 to 10% annual return). But when you’re planning to become rich by investing/trading in stocks, that isn’t the way it’s likely to happen.
For becoming rich you have to be an expert in thinking outside of the box – because that’s what all rich stock traders do!