Investing in stock market has always been something sophisticated for non-professional traders. In our days, modern financial technologies give us all necessary information and quiet simple tools for successful personal trading in stock market. We have collected shortlist of doubtless reasons why it is good idea to start right now.
It almost impossible to get a visible return rate that will cover inflation if you are using a traditional bank deposit or investing in government bonds. For instance, the S&P 500 index fund had soared 65.7 percent in the eight years through 2015. There are plenty of safe strategies that could give you acceptable risk/return tradeoff.
Invest with little fund
Even if you don’t have a huge fund to invest in the stock market you can earn good returns by investing in stocks by using leverage and microfinance services to create a profitable portfolio. With leverage, you can afford more of an asset by using borrowed funds. The leverage is almost always available in your margin accounts via your blocker. For its part, microfinance services can help you to buy a “share of share” if you don’t have enough money to create a full-size stock portfolio. It all gives you a wide range of affordable services that allow you to enter stock market with no pain.
Simple trading process
For recent years, unclear graphics and complicated trading platforms have been available for understanding only for professional traders and brokers who has special training and sometimes even a Ph.D. degree. Usability and design of trading apps and the platform has become crucial for average Joe who is making his first steps in stock market trading. With the modern trading apps, trading in the stock market has become easier than ever before. You can search, analyze, add your sentiment and finally, sell or buy stock with a tap on your smartphone or click of the mouse in free trading terminal. You can use Bullboard as free analysis tool or NinjaTrader platform for low-cost brokerage.
When you invest in the hedge fund or another invest company you actually don’t know what they are doing with your money. Furthermore, they probably will give you a less return rate than S&P 500 index. But when you’re investing on your own you can monitor and manage all crucial procedures.
As you know, dividend is a distribution of company’s earnings. There are certain companies that offer dividends on regular basis. For instance, PPL Corp has 4% dividend yield with 15% average annual total return for the past 5 years. Earning from dividend strategy could be interesting and non-time-consuming investment strategy.
In conclusion, we have mentioned only five most obvious reasons to invest to show you that your own personal wealth and future of your kids depends on your today’s decisions. I have good news for you. If you are reading this article, you probably have done the first step. So don’t stop and try to further your intentions.