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When you start your journey in the investment market, it's common to ask yourself the following questions: is it possible to get rich on the stock market? Generally speaking, investing in the stock market doesn't make you rich. That's because it works as a wealth enhancer. Check it out below. 

It's possible to get rich on the stock market

Most novice investors imagine that it's possible to get rich on the stock market. However, even though this is a widely held belief, it doesn't really work that way. 

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The stock market is an asset enhancer. In other words, when a shareholder invests in companies, the chances of getting good results are high. However, to get started in the market, you need to have money. 

If you invest wisely and use or expand your knowledge of the market, you can leverage your assets. You have to want to be a partner in a business in order to keep up with its long-term growth. 

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If you've never invested in shares, you probably understand and believe that these businesses are risky. And indeed they are. That's because if you don't know how to operate in the market, you'll probably lose a lot of money. 

On the other hand, with all the knowledge about the market, it is possible to get great results from investments. But it's important to take care before investing in new stocks, especially to reduce the risks. 

Why invest money in shares

At first, many investors wonder why they should invest in shares, since they won't become millionaires and they run risks. In fact, there are safer traditional investments to bet on, such as savings and direct treasuries. 

However, even though these securities are safer, they don't offer the same possibility of gains as shares. Moreover, as everyone imagines, any investment offers risk to shareholders, even savings accounts. 

So if risk is unavoidable, it's worth taking a chance on shares that can bring investors a significant return. However, investments in Treasury Direct or any security are not bad, but in all cases it is important to know about the market before investing your money. 

The great thing is that with shares, investors can make asymmetrical gains. In other words, even if you invest little in the market, your gains will be multiplied by 2x, 3x or more. But for the results to be positive, study is essential. 

Why join the stock market

It's currently a great time for investors who want to join the stock market, and there are a few reasons for this recommendation. Check them out below:

  • Trading on the Stock Exchange is Easy: Contrary to what most people think, trading on the Stock Exchange is a simple task. That's because the main brokers in Brazil have websites and apps that make it possible to buy or sell shares in seconds;
  • Low Interest Rates: Unlike a few years ago, interest rates are low. At the time, they reached double digits, which scared investors. For this reason, betting on fixed income is becoming less and less attractive;
  • New Cycle of Valuation: After the Covid-19 pandemic, a new cycle of overvaluation began. However, this has happened for some assets, so it is important to study the market options; 
  • Cheap shares: Just like the previous reason, after the Covid-19 pandemic, shares are cheaper. 

There are some actions indicated in the $1 million R Plan that enable investors to double their profits, and this could happen in the coming months. This process is not something we see all the time, so it's important to highlight it. 

How to follow the investment plan

At first, if you don't understand the investment market, it's essential to know the fundamentals, strategies and ways to invest safely. In this way, investors have a better chance of avoiding losing money. 

Once you understand more about the market, the next step is to build a solid foundation to be able to trade smoothly on the Brazilian Stock Exchange, popularly known as B3. There are some instructions along the way. Check them out below:

  • Learn how to buy shares in a safe and practical way;
  • Discover the top 5 riskiest stocks with an estimated profit potential of 100% for investors;
  • What is the smartest way to allocate your money?
  • How will you find new stocks to trade? 

Once you've established this path, it's time to create a complete spreadsheet to evaluate your available assets. By increasing your contributions, it is possible to achieve optimum profits to build up your assets. 

How the Stock Exchange works

As mentioned above, although the stock market won't make you a millionaire, it is possible to increase your assets. As long as you're careful with your investments, it's easier than it sounds. 

To start trading on the stock exchange, the first step is to build up a source of income. Next, save some of your money, and then start investing in good stocks to build a good foundation. 

In the long term, this investment will bring investors great results. It's important to note that if you leave your money "idle" in the bank, you won't make any profit. For this reason, it is worth considering the investment options on the market. 

On the other hand, if you put your money into fixed or variable income, you can get a good return. However, as mentioned above, all investments are risky, and it is essential to understand the strategies and ways to invest safely. 

What's more, by leaving the money in the bank or at home, the consumer loses purchasing power to inflation. In other words, investments are great options for building a good asset base. But the most important detail in all of this is the long term. 

It's no use thinking you're a good investor, buying shares when they're low and selling them for more when they're high. By following this kind of strategy in their operations, shareholders are taking a risk and can lose a lot of money. 

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