There is a lot of fear associated with the stock market. The anxiety started after the Great Depression in 1929. Recently, we faced the 2008 crisis caused by the excessive risk-taking by banks combined with the bursting of the United States housing bubble. And in 2020, the Coronavirus caused the last financial crisis.
All those events put away the retail investors. In many countries, people are not used to investing in the stock market. Countries that have low-interest rates as the US, incentives people to invest in the financial market.
There is no way to make money investing at rates around 3% per year (0,25% per month). Look at our calculator and verify it by yourself. It barely compensates the inflation. So, if you want to make money instead of only protecting your capital, you have to consider investing in the stock market.
But, how can you invest your money if you are not an experienced trader, you are not able to understand the market, you do not have time to dedicate to the market, and you do not want to?
There are two options for you:
First, you can have professional and independent advice. If you want good advice, you will not find it for free because that knowledge worths money. People work very hard to understand the market and do it for a living. They are tracking the market every day. You will ask me: if they know the market so well, why don’t they invest their own money? First, because they can make much more money selling the advice. If you knew that one stock is probably going to rise 10% in one year, you would gain 10% of your capital. But if you sell that information, the amount of money you can make is unlimited, depending only on the number of your sales. Second, most countries impose restrictions on operating in the market and giving advice at the same time.
If you like that approach, I would recommend Capitalist Exploits. You must remember that your action to buy or sell one stock worth money for many people. That is why you should not trust advice from your broker or your bank, for example. They might not be interested in your goal but in their gains. So, you need to pay someone that gains if you gain. Only independent advisors can do that, avoiding interest conflict.
Remember, to be successful in the stock market is necessary to wait for some years. One of the stock market gurus spent six years in a row having negative performance. However, he is one of the most famous billionaires. Do not expect to be rich overnight.
Second, you can look for the social trading approach. If you want to know the advantages of social trading, click here. The only thing you need to do is to choose one or a few traders after looking at their records like past performance and risk. Like the advisor, the trader will gain if you gain.
You can also be a long-term investor using the Capitalist Exploits advice and provide your account to be copied.
According to the company website, Capitalist Exploits are not ‘publishers’; they are investors whose mandate is simple: to identify asymmetric risk/reward opportunities wherever they may lie. They are not wedded to any asset, sector, jurisdiction, or investment vehicle but instead use subject-matter experts to guide them on diligencing opportunities that enable them to achieve outsized returns. Look at their reviews in Trustpilot.