Investing and trading in stocks is one of the best channels of passive income. Yes, you can earn real money from stocks provided you do the right strategies of trading and investing. I see that a lot of people are still saying that stocks and the market is hard to understand. But contrary to this, there are kids who are already engaging and studying the stock market so if those young minds can do it, what’s stopping you? Stocks are easy to comprehend if your mind is open to possibilities and if you are willing to learn. Once you have the basic skills and confidence to play the game, your perseverance will pay off through your earnings. And speaking of profits, whether big or small, let me share with you the reasons why you should reinvest your earnings like any other investors in the market including me.
Catch me in my live training events! (quick plug)
The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the trainings below.
Stock Smarts Manila — June 15, 16, 22, 23, & 29, 2019
Stock Smarts Iloilo – July 6 & 7, 2019
Stock Smarts Cagayan De Oro – July 20 & 21, 2019
Stock Smarts Hong Kong – August 11, 2019
Stock Smarts UAE – August 30 – September 3, 2019
Stock Smarts Qatar — October 3 – 6, 2019
Stock Smarts Taiwan – November 2, 2019
Reinvesting your profit will help you increase your capital. Investing and trading in stocks is just like running your own business. Once you’ve hit a good point and it goes back to you as a profit, you don’t immediately take it out just to spend it. You use the money to expand your investment. You use your earnings so you can trade more stocks that can lead you to even greater profit. It all adds up to your investment capital. The more you earn and the frequent you reinvest it, the more your money will be at the end of the game. If you’re more to long-term investing, let your investment compound until you reach your target amount. Don’t pull it out and use to buy unnecessary things. Material stuff can wait.
If you reinvest your profit, there is a chance to make it double or triple. But if you pull it out, you abandon that opportunity to make a greater earning. Reinvesting your earnings means your opening more doors for another profit. It’s like making your profit a profit but on a new level because you’re now risking your gain. If you are trading multiple stocks and you’re currently facing losses on one of them and gains on the other, I suggest you use your gain from your other stocks to recover your losses. Yes, it’s still possible to gain from investing your profit if you are willing to take the risk. Again, don’t pull them out too easily if you want to grow your money.
Reinvesting what you gain means prolonging your time trading or investing in the market. It means you will have more opportunities and time to learn stocks and the fundamentals that move around it. It’s not just your money that’s growing when you reinvest your earnings. Your knowledge is expanding and you’re developing as an investor as well. Isn’t it one of the basic needs when you’re investing or trading? To build more financial knowledge so you could understand the market to a new level?