According to surveys, the money regardless of the currency location decreases its value by 7-10% per year. Experts called it inflation rate. This is actually the main reason why you realize that your $ 1000 could only buy a few of goods compared to the previous years where it can even buy a house and lot. Inflation rate is a constant variable and you could do nothing to stop it. However, there is an efficient way to overcome the deadly fingers of inflation rate and that is through stock investments.
While banks and other financial institutions could only offer 4% a year interest, the stock market could give up to 20% depending on the flow. Yes, it could be risky but there are magic tricks to win in this game without putting your money in trouble. Have you ever wonder how several Americans gained their wealth? Simple. Over 45% of them invested their money on stocks, which mainly take effect on the long haul.
The first thing that you should consider when planning to invest on stocks is the legitimacy of the stock firm. As you know, there are a lot of scams that may take advantage and you should always be aware of them. With the internet access, you can conduct your own research and find top companies that share their stocks to the public.
In the past, stocks are just for people with millions on their hands. However, now there are several companies that offer shares to people who want to invest on a minimum price. Stocks are far different from banks. Let's say you have $ 100 and you decided to invest the money on the bank. After four years, you would only get $ 400. Quite terrible huh? However, when you invest on stocks, you could get $ 1400. Have you seen the difference? That means, the next time you have a seat on the bank while sipping a cup of coffee just realize how much they will charge to you. Yes, they are just using your $ 400 and earn $ 1000 after a specific period of time.
The application for stocks investment is actually easier than you may think. After you figure out that the company you are invested with is legit, then it is up to you if you would visit their office of you could just go online and submit your application though it is always advised to talk to them personally so you can throw questions to them about the their transactions.
So once you've set things up, what would be the first thing that you should do? Well, you will not go on cheap deals but you also have to check the dividends companies were offering. There is actually the best time to purchase stocks and what is that best time? Well, when economic falls there are people panicking and selling their stocks however it is not advisable to buy them during crisis. Investing on stocks is actually risky though it could bring millions if not billions of money if you know the secret trick.