Given that fear is ruling the equity markets these days, it is easy to lose sight of the basic principles behind investment success. Early this week, once again, all eyes will be on the Federal Reserve, which is expected to keep rates unchanged. I agree with the consensus and think the Fed will keep rates on hold and maintain its current "loose" monetary policy, which makes this a good time for investors to emphasize small-cap stocks.

But before I explain a bit more about how I come to such conclusions, let's take a step back and think about how the average individual investor can really build wealth by investing in the stock market.

The most powerful tool is the law of compound interest. Einstein once called it the eighth wonder of the modern world. Remember that $10,000 invested at the S&P 500's historical 10% rate of return can make you a millionaire if allowed to grow over a long period of time. Maintaining a long-term focus is the real advantage that individual investors have over the Wall Street institutions that are primarily focused on short-term performance.