Stock Circles

Rocket Effect

Rocket Effect

Instead of trying to get rich quick, make plans to build wealth over the long haul and reinvest your profits to take advantage of the compounding effect to create momentum in your portfolio.

Compounding

Financial concepts like the compounding makes your initial investment grow exponentially over time.

Compounding means that your profits are getting reinvested. That's essentially how investments grow over time. The rocket effect takes advantage of profits by making them available for trading again and again. It creates momentum over time.

After 12 months of compounding using an auto-trading strategy, your investment could have grown significantly. Over a 10 or 20 year period, the rocket effect would have created wealth beyond your wildest imagination.

They say the sooner you'll start, the better you'll be.

Think of systematic stock investing as being similar to building a snowball by rolling it down the hill. In the beginning, the ball will be small, but at every turn, it will capture more and more snow. In this case, investments gain momentum from both adding capital monthly and from the profits getting reinvested time and time again.

Starting sooner rather than later can make a huge difference in your ability to gain access to capital when you will need it. If you start stock investing at an age where you do not have much income coming in every month, you need to remember that you do not need to invest much every month. It is the consistency aspect of systemic stock investing that makes a big difference over time.