The Risks of Keeping Money in Banks
In today’s world, the traditional ways of keeping money in banks or saving it in a piggy bank are no longer safe. With the ever-increasing inflation rate, keeping your money idle can lead to losing its value over time. Also, stock trading has always been a risky game, and not everyone can handle the volatility and unpredictability of the market. In this article, we’ll explore the benefits of investing in good companies for the long term as a safer and more profitable alternative.
The Risks of Keeping Money in Banks
Banks were traditionally considered the safest place to keep your money. However, with the low-interest rates and the threat of inflation, the value of your money may actually decrease over time. The interest rate offered by banks is often lower than the inflation rate, leading to negative real returns.
Moreover, there is always a risk of banks becoming insolvent, as we have seen in the past with several bank failures. In such cases, the government may provide a deposit insurance scheme, but it only covers a limited amount, and the rest is at risk of being lost.
The Risks of Trading
Trading in the stock market can be a risky game, especially for beginners. The market is highly volatile and unpredictable, and even the most experienced traders can sometimes make bad calls. One bad decision can result in significant losses, which can be hard to recover.
Additionally, trading requires a lot of time and effort, and not everyone can afford to dedicate their time and resources to it. Short-term trading or scalp trading, which involves buying and selling stocks quickly for small gains, can be particularly risky.
The Benefits of Long-Term Investing
Investing in good companies for the long term can be a safer and more profitable alternative to keeping money in banks or trading. By investing in a company that has a strong track record, you can benefit from the company’s growth over time. Moreover, the stock market tends to rise over the long term, providing significant returns to patient investors.
Long-term investors also benefit from the power of compounding. When you reinvest your dividends or profits back into the company, your investment grows exponentially over time, resulting in significant returns.
Long-term investing also requires less effort than trading. As long as you have invested in a good company, you can sit back and let your investment grow over time.
Comparing Returns
Let’s compare the rate of returns between keeping money in the bank and investing in a good company for the long term. Suppose you have $10,000 to invest. If you keep it in the bank at an interest rate of 1%, you will earn $100 in interest over the year. However, if you invest it in a good company that provides an average return of 7% per year, your investment will grow to $19,672 after ten years.
Moreover, if you reinvest your dividends or profits, your investment can grow even faster. For instance, if you invest $10,000 in a company that provides an average return of 7% per year and reinvest your dividends, your investment will grow to $28,400 after ten years.
Let’s Also Understand Scalp Trading
Scalp trading is a short-term trading strategy that involves making multiple trades in a single day to take advantage of small price movements. Here are some benefits of scalp trading:
- Quick Profits: Scalp trading allows traders to make quick profits within a short period of time. The aim is to make small gains on multiple trades, which can add up to a significant amount over time.
- Risk Management: Scalp trading involves tight stop-loss orders, which help limit the trader’s potential losses. This approach helps traders to manage their risks effectively.
- Flexibility: Scalp trading can be done in any market condition. It does not rely on a specific market trend or direction, making it a flexible trading strategy.
- Reduced Exposure: Scalp traders do not hold positions overnight, which reduces their exposure to market risks that may occur overnight.
- Less Stress: Scalp trading is less stressful compared to other trading strategies that require traders to hold positions for long periods. This approach allows traders to take quick profits and minimise their risk exposure.
In summary, scalp trading is a high-frequency trading strategy that involves making multiple trades in a single day to take advantage of small price movements. It is a flexible, low-risk, and less stressful trading approach that can be used by traders to make quick profits.
Wonderful, Long Term Investing and Scalp Trading makes sense, Is there any way I can blend them ?
There is one. And the answer is eDealer.
eDealer : The Revolutionary Algo Trading Platform for Consistent Profits with 0% Risk
The world of trading can be risky and unpredictable, and many traders struggle to make consistent profits. eDealer is a trading platform that offers a unique solution to this problem by combining the benefits of long-term investment and scalp trading with 100% automatic algo trading. Here’s how it works:
What is eDealer?
eDealer is an online trading platform that uses advanced algorithms and machine learning to analyse market data and execute profitable trades automatically. The platform offers a range of investment products, including Stocks, Index Funds and ETFs. You might already know these all are risk free investments in long term. The only key is to know the right time to buy and sell. That’s what eDealer does for you.
How does eDealer work?
eDealer uses advanced algorithms and machine learning to analyse market data and identify profitable trading opportunities. The platform is 100% automatic, which means that trades are executed automatically without the need for human intervention.
The platform uses a hybrid trading approach that combines the benefits of long-term investment and scalp trading. This approach is designed to maximise profits while minimising risks. eDealer uses a range of risk management tools, including stop-loss orders and position sizing calculators, to ensure that trades are executed with 0% risk.
What are the benefits of eDealer?
Consistent profits: eDealer is designed to generate consistent profits on a daily basis. The platform uses advanced algorithms and machine learning to analyse market data and execute profitable trades automatically.
No risk: eDealer is a 100% automatic platform that uses a range of risk management tools to ensure that trades are executed with 0% risk.
Low fees: eDealer offers low fees on trades, which makes it an affordable option for traders of all levels. The platform charges a flat rate for each trade, regardless of the size of the trade.
Conclusion
eDealer is a revolutionary trading platform that offers a unique solution to the problem of consistent profits with 0% risk. The platform uses advanced algorithms and machine learning to analyse market data and execute profitable trades automatically. Whether you’re a long-term investor or a scalp trader, eDealer is a platform that you should consider.
By using eDealer you are not saving in bank account, instead you are keeping it into your Demat Account that too in the form of Assets not money(which is getting devalued daily)
Thanks!
