A lot of investors speculate whether they should invest in stocks. Analysis of facts is of primary importance instead of blindly accepting common myths. Here are the top 4 myths associated with stock market investment.
Stocks only perform well during strong economics:
Not all sectors perform ‘badly’ in slow economies. For example, even recessionary times Canadian financial institutions perform well because of their monopolistic status.
You need money to make money:
This is yet another most common stock market investment myth. Many people assume that they cannot start investing until they’ve a lot of money. But this is not the case. You don’t need to be a millionaire to start investing. The rule of 72 proves that the doubling of your investment (RRSP & TFSA) creates wealth. https://www.investopedia.com/ask/answers/what-is-the-rule-72/
Investing is simple, just buy low & sell high:
Most of the non-investors thin this way. They assume investing is simple – you just need to purchase low and sell high. Many individuals are very successful at their careers or at running their business after they have spent some time ‘learning under a mentor’. Education under experienced lecturers and coaches is important. Therefore, it’s quite impossible to read a book and start investing. Imagine a ‘pilot’ reading a book and inviting you a passenger on his plane!
High returns is equal to high risk:
Though this sounds realistic, it is another common piece of misconception related to stock market investing. Every day we face ‘risks’ e.g. crossing the street; cash can be devalued etc. The brilliance is in mitigating the risks e.g. look left, the look right and look left again mitigates the risk associated with crossing a street. In terms of currency devaluation, diversification is an option that must be considered. It is all about being an EDUCATED investor!
Unfortunately, many individuals who are very successful at their careers or at running their business remain intimidated at the thought of managing their own investments. They feel inadequate in their ability to understand what is required and subsequently rely almost solely on “experts” to make the decisions for them. Even though most people are highly capable of making informed, intelligent choices, they abdicate their most important resource (hard earned savings and investments) to third parties who may not share the same goals as the individual/family. By only following the advice of traditional investing philosophies (some of which may be outdated), they limit the growth of their portfolios to industry averages
Are you looking for the most reliable Canadian stock market education & training program? If yes, then feel free to join The TRAIN2INVEST program.
TRAIN2INVEST is North America’s leading investment education and training corporation. The Corporation’s purpose is to provide a new way (i.e. a paradigm shift) where families; individuals and communities think about wealth management. TRAIN2INVEST achieves this through teaching, training and coaching individuals in the art and science of self-directed investing with the foundation based on capital preservation. TRAIN2INVEST offers a complete education and training experience tailored to the individual’s risk profile.
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