The performance in financial market

how does the stock market affect individuals

The content is about the Financial Market and the performance in financial market, where the purpose is to unravel some myths that are being posted on the internet. You need to be aware! Now you need to know the truth. Knowing what is true, knowing what is myth and what has been put on the internet completely randomly. So, therefore, if you have anything, any information that you saw of someone putting an earthworm on your head and that you are in doubt. In today’s myth, I will discuss about profitability. I’ve been following some discussions where everyone was bragging about profitability.

Profitability

“My goal is to have the best profitability.” “This is what matters in investment.” And I will say to you: is having the best return on investment really the most important thing? It is this answer that I am going to give you now. So, think with me: what does it mean to have the best profitability? The performance in financial market and profitability is due to the result of its financial investments over a period. It could be a month, six months, a year, five years, ten years. So, a lot of people focus a lot on: “How am I going to get the best return for my capital?” So, a lot of people arrive and say the following: “Ah, but I had a stock here that I bought that yielded 80%.” “I had another share here that had 20%.

So I am an investment expert.” “I achieve all the returns, the best returns that exist.” And the question remains: is profitability, in fact, more important? I can, for example, have a very good return on my investment portfolio, but having debts. So, does it matter? So, it is important to have the best profitability if you are in debt, running the interest on a credit line which is higher than the return on investments you have? Or that it is not bigger, it usually is, but that it is not. But that still drain a piece of your profitability? So, right away, the profitability of your investment portfolio is not a single parameter. Another thing that you have to keep in mind is the following. what good is it for me to have, for example, 10 thousand reais and have the best profitability in the world? It doesn’t help, why? Because I can have a friend by my side, who works with me, who has a thousand reais, but deposits a thousand reais every month. He does his homework, controls finances, and then in two years he already has 24 (thousand), in three years, it already has 36 (thousand), and so on.

So, his equity growth it will be much higher than mine. So, the question to be unveiled here in this myth is the following: is profitability the most important thing in investments? Myth! It is not. What is most important is your ability to accumulate equity, and accumulation of equity comes from profitability, but also your ability to keep guarding. Do you know why? Because if not, you can be the guy with the best profitability and it does not achieve its life goals, neither financial freedom nor financial independence. But your friend next door, he may not have the same profitability as you, but make all the dreams he has come true.
So, profitability is not the most important and this is a myth! Beauty? So, your focus has to be on the accumulation of equity, because the accumulation of equity is that, in the long run, it will allow you to achieve your goals, have financial security, conquer freedom and financial independence, consequently.

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