Why you should invest in stocks as early as you can ?

Stock market is the marketplace where people buy and sell ownership shares of a company or multiple companies. When you buy a stock, you become an owner of the company. If that company grows, your investment on that stock increases because the value of the company has increased. You will receive what we called dividends, a share of profits. 

To generate wealth for yourself in the long run of maybe 10-20-30 years, you should invest in the stock market as early as you can. It’s probably hard to think about one day you will retire at some point, yet it will come. Therefore, you have a powerful factor that you can control: the time.

 By investing earlier, you will have an advantage on money when you are older. This is the same as by reading the next lesson so you wouldn’t be stunned or confused. If a 20 year old guy named James Smith invests $5,000 dollars that has a 7% annual return, his portfolio would be worth more than $1.7 million dollars by the time he is 67! This is what we call compound interest. If James Smith waited for a decade, his portfolio would only be worth just more than $800,000 dollars.

 To invest in these stock markets, you can go through many channels but I would recommend Robinhood or apps like Fidelity or Vanguard. These E-Trade Apps would make buying and selling your shares much easier.