Looking to multiply your investment? Then here is a secret that banks don’t want you to know!
That secret is the rule of 72, also called the secret of 72. It is a simple mathematical formula with which you can multiply your investment.
By applying this rule, you can excel better than from any other method. And most importantly, this method works every time! The only precondition is that you should understand this rule well and act accordingly.
Rule Of 72
This rule states that if you divide the number 72 by the rate of interest on your investment, then you will get the number of years it will take to double your investment.
Let us suppose that you invested 1,00,000 as fixed deposit in your bank at 8% rate of interest. You will be able to double this investment only after 9 years.
Why Fixed Deposits Aren’t A Better Option?
There are some other reasons why fixed deposits are not a better option.
Let’s go back tot the above example. You already saw that it takes 9 years for you to get twice your investment money. In addition to that, by the time you get that money,
- Cost of living would increase
- Inflation would increase
- Bank rates would go down
So from this, it is very clear that even if you multiply your money by choosing the fixed deposit route, it will not have the same value when you actually get the multiplied amount in your hand.
So, let’s look at some other options at multiplying your money.
(1) Work hard, earn a promotion, and earn a better salary.
At first look, this sounds good and safe….but wait a minute! This is not gonna work. With the increasing pressure in work culture, robots devouring our jobs, companies getting downsized, and salary being reduced regularly, this definitely won’t take you near your goal of multiplying your wealth.
(2) Invest in real estate and sell at a better price.
The future of real estate business is very bleak. It is becoming lesser and lesser attractive day by day. Liquidity is the main challenge here. Also, it is very difficult to find the right buyers. So doubling your savings is completely out of the picture.
So what do you do?
A Good Option To Multiply Your Investment
There is a much better and quicker option available to you – and that is to invest in stock markets! This is a good option to multiply your investment at a comparatively faster rate. For instance, see the below example/graph.
It shows that if you can make at least 24%, then you will get twice your investment in as early as 3 years. Or in other words, you can double your investment every 3 years!
On a different note, if you invest 1,00,000 in fixed deposit with an interest rate of 8%, then it would yield only 7,00,000 after 22 years. On the other hand, if you could earn at least 24% on this investment, then what awaits you after 22 years is 1,30,00,000!! Wow! 1.3 crores! That is the power of compounding and those who realize it make it !
But is that achievable?
Yes, it is! You can learn various stock market trading strategies that will help you to earn such huge returns on investment. And the fact remains that many traders are making more than this rate by investing in stock market. They achieve this fete because,
- They learn stock market trading thoroughly before entering the market
- They focus on executing those learnt strategies well
- They exercise a great deal of patience while trading in stock market
- They don’t get dejected at occasional losses
- They don’t get carried away with stock market gains
Anyone who can follow these five golden rules can hope to earn higher returns and thus multiply their return on investment at a faster rate. Experienced traders earn 30% to 40% returns on their investment. The key is to think in terms of quarterly or yearly gains. The main problem for non-achievement of this fete is that many who step in to the world of stock trading lack a long-term vision and are discontinuing it after a certain period of time.
This rule is applicable irrespective of the size of your initial investment. Even if you are starting with an investment that is as modest as 1,000, you still can multiply that initial investment by following the above rules.
How To Achieve This Fete?
For this, you need to do two kinds of investment:
- Invest in stocks
- And more importantly, invest in yourself!
Yes! You have to invest in yourself to gain the skill to multiply your money. It is a skill that you can master. This is a skill that you can use your entire life. It will remain an asset to you for ever. You don’t need to depend on anybody else for multiplying your money. You don’t have to risk your money with someone else.
Benefits Of Learning How To Get 200% Return On Your Investment
Learning how to trade is like learning to fish than buying fish from the market. If you learn how to fish, then you don’t have to spend on fishes anymore. You can catch as many fishes as you want. Similarly, if you learn to trade in stock market, then you can multiply your money at your wish! You will understand how the price of a stock moves. This will help you to make money in two ways – by buying and by selling. Whatever happens in the stock market – whether the price goes up or goes down – you will stand to gain! You can make profit in both these scenarios.
For someone who has undergone training in stock market trading, this 24% rate of return or in other words, multiplying of investment is not a big thing. Yes, you read it right; EARNING 24% IS NOT A BIG THING! Because you can earn much bigger than that if you learn profitable strategies like price action trading. Look at the performance statistic link below:
This shows how our traders and investors who have undergone Mithun’s Master Mentoring Program have earned higher returns from leverage trading ! This is a clear indication that our price action strategies are working well. This is how traders earn more than double their investment.
They could achieve this because they;
- Understood the rule of 72
- Invested their time and effort in learning stock market trading
- Exhibited good presence of mind
- Mastered the skill of trading through their dedication and commitment.
If you too would like to follow their path and multiply your investment, then you have three options in front of you:
- Learn To Trade: Enroll now itself for an intensive course on how to trade in stock market. You will get to learn several rules, strategies, and tips that will help you to multiply your investment.
- Build Portfolio: Build a portfolio on stocks with good growth prospects. You can split your savings into these stocks. As the performance of these portfolios increase, you will start getting higher returns on your investment.
- Seek Our Service: We are willing to lend you a helping hand to build your portfolio! We understand the pulse of the market and the way it moves. So you can always approach us anytime and we will help you to build a strong portfolio.