For the average person, making money in the stock market is about buying low and buying high. Get Stocks – Real Investors How to Make Money
They believe that by doing so, they have the right to call themselves investors. Well, I do not agree – they can be more appropriately called traders.
Of course, traders make a lot of money in the financial market – the last bull market in the stock market earned a number of millionaires? I can not even count. The fact is, these traders also risk by skipping stocks one by one, not really interested in whether the stock value. PRICE is the most important thing traders.
The normal fluctuation of the price allows these traders to profit at any time. Rewards sometimes outweigh the risks, but the risks are also very unstable – some risks are high, other risks may be low risk, and vice versa. This difference in perspective is likely to overturn the market.
So, why become a trader? The risks involved, let alone pressure, are very depleted. Daily busy trading stocks also hurt the mind and body.
On the other hand, investors are very relaxed as they do not have to worry about normal price volatility. When prices fall, they do not panic because they know the real value of any stock they are involved in. The only downside of being an investor is that you have to wait a long time to see the results, depending on whether you are in a fast-growing industry or a mature and stable industry.
However, there is a way to negate the time requirement. You can choose to create your own company, go public and become a sales shareholder. It's the world's biggest asset – Bill Gates sells his stake in Microsoft Corp., where Warren sells his stake in Berkshire Hathaway and George Soros sells his Quantum Fund shares. So now you may see how much money these types of transactions have.
Therefore, having a business is a necessary first step to becoming a real investor. It can be any business in any industry, as long as it is legal and profitable.
Once you have established this business, create another part that uses the first part of the profits. It has never hurt multiple businesses. When you have four profitable businesses, you can incorporate them. If you wish, you can join early. Tax advantages are enormous.
After you continue to grow your business until you are confident to go public. You can then coordinate with the SEC on your IPO.
Restart the process when you are using an IPO. The more companies you have, the more capital gains you can enjoy in the future. It's in your hands.
If you believe you can start a business, do it! If not, go to work on a business you want to replicate in the future and feel how it works. When you are already familiar with, start your own business.
Remember that the world always reward the most productive people. So go, productive, and do not waste any time working for someone else unnecessarily. You have more free time and you will find more opportunities. This is a simple wealth cycle.