In the world of investing, you need a solid plan. If you don’t, you will end up missing out on opportunities you could have had otherwise. That is why in this article we are going to walk you through visualizing how much money you could have made if you invested $100 in early stocks, in their value today. And then we will share with you the lessons learned from this:
The Blue Chip Stocks
If you invested in Amazon, Facebook, or Apple alone, you would now have $10 million. Of course, this is a large number. The key, however, is that these are early stock investments. This is the return that someone would have gotten if they put their money in right at the beginning.
That is the key to great investing. You need to understand and act on an opportunity before the other people have a chance to. If you don’t, you will end up missing out on the biggest opportunities. Once everyone knows about it, there is less opportunity to go around.
Going Long Term
Your long term strategy should be the one that dictates your actions on a daily basis, not your short term. It is easy to fall into the trap of having a short term memory. However, this will not benefit you in the long run. You will start to chase money that you thought you could have had instead of looking at what you have now. This might lead you to make emotional decisions instead of logical ones.
Look for Hidden Gems
There is a certain amount of research that you need to do as an investor. It is not enough to simply go off of what you see in the news. If you do this, you could be led astray. So make sure that you are not just listening to the tv opinions. Seek out your own knowledge and verify it from experts. This way, you can rest assured that your decision is backed by science and facts about historical performance of the market.
Beware of Trying to Beat the Market
If you invested $100 back into any of those stocks mentioned, you would be a millionaire today. However, it doesn’t involve any trickery. In fact, you just needed to hold onto those investments and not let them go. That is all there is to it. So don’t make the mistake of thinking you need to get it all in one fell swoop.
The performance of a stock has to do with the success of the company. Make sure you are looking at the board, the leadership, and the trend of the profits for that company. This will determine its stock value.
When it comes to investing, no one plan fits all. You need to have a custom strategy that fits your goals and budget. However, there are powerful ways that you can ensure you take advantage of market realities and avoid common mistakes that other investors make. So don’t miss out on your future earnings. Apply the principles above today.