Why You Will Never Get Rich Through the Stock Market

Many websites promise you the world, claiming you can become wealthy or even live off dividends through the stock market. I am going to explain why that is virtually impossible today.

To build wealth, earned income alone is not enough.

Have you decided to invest a portion of your monthly salary in the stock market to build wealth over the long term? That is a great start, but it will not be enough to make you wealthy. In fact, unless you have an astronomical income that allows you to invest massive sums, you will never be able to accumulate enough capital throughout your lifetime to live solely off dividends and market returns. Here is why:

• The amount invested each month will be too low to be truly significant
• Stock markets fluctuate, and you may lose part of your capital

So, what is the secret?

The secret lies simply in investing not with your own capital, but with the bank’s, in order to benefit from leverage. On the other hand, unlike real estate, there is no bank to my knowledge that lends to individuals to enable them to invest in the stock market. Indeed, for these institutions, the risk is far too high; if you lose, the bank would be unable to recover the capital as it could with real estate.

What is the purpose of the stock market if I cannot get rich?

When investing in the stock market, do not do so with the goal of getting rich quick; rather, aim to diversify your investments so that your asset portfolio is not overly dependent on any single sector. Today, various online brokers allow you to trade online almost free of charge. This presents a great opportunity to find your footing and familiarize yourself with the financial markets. Above all, you must undergo training and learn how to trade online. However, once again, stick to low-volatility products and avoid CFDs and leverage. Companies within the CAC 40 already offer promising prospects for your capital while remaining relatively “safe” investments.