I bet that this statement has had a shock on yourselves, but it really is true. Let me explain my arguments:
An investment in the Stock-Market has the pros that any other investment does:
1) You can decide which is going to be your initial investment. You can begin with 3000 € or with 1000000000000000000000000€, while in the rest of businesses you will need a minimum amount of 6000€ of reserves plus the investment.
2) No one is going to say that you have to open your business. If you decide not to open your business whenever you want, the probabilities of loosing all your clients are quite high. But the probabilities of loosing your clients in the Stock-Market are zero.
3) You can put a limit on your losses. You can decide to stop loosing when you have lost 50 €. If you have a restaurant, and you do not sell any menu that week, you will have to throw away all the food because it's going to be rotten. If you want to limit your losses, you will have to limit your gains and buy less food, while if you want to limit your losses in the stock-market, you don't have to care about limiting earnings.
4) You can work for yourself and win a lot of money, and you only depend on yourself. While opening a regular business, you will have to recruit other people and you will have to pay them, and if you decide not to recruit anybody, you will have to work day and night.
5) You can get free credit to operate. If you want to set up a firm, you can't go to a bank and just say: "Dear banker, I want to set up a business and I need 100000€. I have no money, I have no goods to back up my mortgage, and I am not able to give it back to you if something goes wrong... " Oh, well, you can say it to him, and you can cry if you want, but as long as you begin with the first sentence, he's gonna laugh at you. In CFDs you can get financing, with no backed up goods, with no transactions, with no time and with no explanations. If things go bad and you loose the 10% that you had to put as a guarantee when you bought the shares, the broker is going to close your position, and you will stop loosing money.
Dear friends, it's not very difficult to see that this is the best investment you can ever do. But as every investment has to have a knowledge behind, and you may not be the best one to take that business. Why is that the 90% of people end up loosing money in that business? Well, because they are not the right ones for it or they "play" with the capital markets. You have to be a bleakness person. Be able to accept that you've done it wrong, when you have done it wrong, and be able to loose the first 100 euros if anything goes wrong, because if you are not able to do so, you neither won't be able to do it when you are loosing 1000€, and if you keep thinking that soon or late that shares have to go up, you are going to end up in bankrupcy, as it might never go up again, and you will always cry because you weren't able to loose.
The last thing to state is that as every business, you have to know what is going on there. You can't just read "the low-risk that an investment in the stock-market has" and just go through it. You have to study the functioning of the markets, and be an open minded who knows that he's doing wrong and has to change strategy.
You should go to Josef Ajram's course about stock-markets and you will know what I'm talking about...
Kind Regards,
Marc Ramon Hernández
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