How do I earn shares

Make money and get rich with stocks

Stocks are fascinating. Earning money with stocks is the dream of many investors. The magic of promising profits and opportunities that trading the stock market brings is alluring. But how much should you invest in stocks? And what can investors do about the short-term and long-term variant Make money with stocks learn? How easily can the capital employed be increased sustainably and in the long term? How can private individuals profitable benefit from professional investors? We'll give you the answers. Before investing, investors should be aware of the instruments they are trading with. Reread our full-length overview of stocks under the motto: Crash Course - Understand stocks in 10 minutes.

 

Get rich with stocks

The term "Get rich with stocks“Is certainly relative. Half-silk advertisements on numerous Internet portals that promise quick money and a carefree life by earning money with stocks are not serious. Nevertheless, you do not have to forego returns and with a few simple tips you can build up a profitable equity portfolio as an extra income and a cushion for old age. Getting rich with stocks isn't necessarily a myth. There are numerous examples such as Warren Buffett as one of the prominent examples.

Every investor is spoiled for choice when it comes to fulfilling the dream of getting rich with stocks in the financial market. There is a seemingly endless number of different investment options available for making money in stocks. A brief comparison: Imagine, in 1996 - over 24 years ago - an investor invested € 1,000 each in gold, in the Dax, in the Dow Jones and in the US tech index Nasdaq 100 (status of the sample calculation April 20 .2020). With a portfolio value of € 4,440, gold would have beaten both the Dax (€ 3,649) and the Dow Jones (€ 3,647). In light of the current Corona crisis, however, this value should be treated with caution, as many investors are fleeing to the safe haven of gold. By far, an investment in the Nasdaq 100 would have paid off best, it would be worth a total of € 14,141 today. What lessons can be learned from this? Is getting rich with stocks feasible for every investor? It can be said that it is possible to make money with stocks, they are lucrative. Impressive returns can be achieved over a longer period of time. But if you invest your money in self-selected individual stocks instead of in indices, you even have the chance to gain a broader base Beating market and can make even more money with stocks. This is exactly what professional stock market letters do with sample portfolios that are easy to reproduce. The PLATOW stock exchange, which pursues a very established stock picking strategy on the German market, has achieved a return of 3,356.8% with its model portfolio since 1996. The € 1,000 in 1996 would have become € 33,568 today. The conclusion should be obvious: professional and in-depth investment tips have the long-term potential to outperform indices. There is money to be made from stocks. To be realistic, getting really rich with stocks may only be reserved for some personalities, but it is not impossible.

 

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How Much Should You Invest in Stocks?

So we found out there is money to be made in stocks. What does that mean for you personally when it comes to the question of how much should you invest in stocks? Investors who are at the beginning of their stock market careers or who want to set new impulses for their equity portfolio are well advised to rely on professional investment tips. But how do you earn money with stocks? The easiest way that our small sample calculation has shown is to invest passively in so-called ETFs, which has become easier than ever nowadays. An ETF (English: Exchange Traded Fund) is a fund that tracks a certain index, e.g. the MSCI World or DAX. The performance of an ETF therefore always runs parallel to the index. An ETF is therefore very transparent and understandable for the investor. An ETF combines the advantages of a share with the advantages of a fund that distributes the assets. Another big advantage of ETFs is the low cost, so beginners can get started quickly and easily. In addition, ETFs can be sold quickly and liquidity generated if necessary. The disadvantage of ETFs, however, is that an ETF goes through every movement of the broad market, which can be painful for your own portfolio, especially in crash phases.

Targeted Stock picking Compared to an ETF or fund, it enables you to react flexibly and agilely to market movements and to lift real treasures away from the major indices into your portfolio. Only buy a share if you are persistently convinced of the company's business model. This is a great way to make even more money with stocks.

How much money you invest in stocks depends on your personal investment strategy. In general, a broadly diversified portfolio of investment properties is suitable in order to minimize the risk. In times of low interest rates, stocks and real estate are particularly interesting because they are values ​​with substance. Earning money with stocks is very attractive in these times and should therefore make up a large proportion of your investment.

The short-term and long-term way of making money with stocks

Whoever wants to get rich doesn't want to wait long. How can private investors even make money with stocks? Through the fastest and most agile trading possible (e.g. certificates, CFDs), which requires a large amount of time, or through a considered, strategic investment for a longer period of time? We'll give you the answers.

Everyone knows scenes like those from films like Wolf of Wall Street or the character Gordan Gecko from Wall Street, in which millions are made in a very short time with unmanageable trading. But is that really the way to make money with stocks? Hollywood as a dream factory was not really close to reality, as several studies in the field of financial market research show. Hardly any other form of investment is as risky as day trading. This is mainly due to the high fluctuations in value. Usually leverage products are traded, which can multiply the profit, but also the loss in the short term. If borrowed money is used for this, it can turn out badly.

Indeed, a fundamental problem for many investors is an over-confidence in their own ability to read the market. A problem that leads to fatal overconfidence. One two successful trades and you can start making money with stocks. Unfortunately, it's not that simple. It is intuitively obvious that many investors give positive developments too high a probability, while negative expectations are quantified with too low a probability. This carries a great risk. Empirical studies show, especially against the background of the rapid development of our communication options, which enable ever faster trading of a share, that faulty overconfidence is often visible in excessive trading when making money with shares. The strategy of buying and selling a share in quick succession, however, rarely leads to the desired success and entails a high level of risk. The winner is usually only the bank, which can collect multiple fees at the same time. These must first be brought back through the profits from trading. Back and forth empties pockets, as experienced stock market professionals know. The net return of this strategy is significantly lower compared to less volatile investors. Earning short-term money with stocks is something smart investors leave to the gamblers on Wall Street. You shouldn't take this risk.

However, both research and empirical evidence show how investors should get it right: Long term make money with stocks. Our example from the beginning shows this very nicely. While there are too many volatile jumps in the short term, the long-term development of strategic equity investments only points in one direction: namely upwards. Continuous investing based on a competent guide such as the PLATOW stock exchange, which has been active on the German market for a very long time, pays off. The performance of the successful model depot proves this impressively. With in-depth knowledge of a share and a long-term investment in a successful and promising business model of a company, you can minimize the risk. With the PLATOW Börse stock exchange letter, subscribers receive recommendations three times a week on how to buy stocks for their portfolio. The PLATOW Börse experts will give you answers to your personal questions in the editorial office hours (no investment advice). You save yourself unnecessary, nerve-wracking moments and can calmly enjoy how your invested capital increases and you earn money with the best stocks.

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PLATOW Börse is the competent advisor for your equity investment. The Börsenbrief has a clear focus on the German stock market, supplemented by the best investments from Western Europe and the USA.

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