Investing Myths You Should Stop Believing

There is a lot of misinformation about surrounding stock investing/investing. Some myths are non-significant, and they typically have no impact and can hardly get in the ways of significant investments, but some are so serious that they can cost you a considerable sum of money in the long run. We’ll show you what the most significant myths are and the truth about each of them.

Myth 1: Popular Companies are the Best for Good Investing in stocks

The fact that a company is famous doesn’t guarantee growth or success. Several popular companies suffer from valuation which is too high and are bad stocks. For instance, General Electric is one of the most popular companies in the United States, but in the last few years, they have lost lots of their share value.

Myth 2: Investment is Riskless

If you see a trader that offer you a riskless investment, run as far as you can. Every type of investments has some risk, and only a fraudulent trader will claim that investment is riskless. If you want to minimize your investment risks, you can invest in risk assessment and have an exit strategy. And the same thing goes for guaranteed returns.

Myth 3: You’re Too Old/Young to Start Stock Investing

You can start investing at any age, as far as you have the capital. Though the earlier you get started, the more chances you have to make a good profit, but the more risks you will have to face. Age shouldn’t be a barrier; ensure you do your research before getting started.

Myth 4: You Need A Lot of Money to Invest

No, you don’t need a lot of money to start investing. You can start with a small amount of money, and the most important thing is to begin. Compounding interest over several years can make you rich. For instance, if you invested $85 a month, it will add up to $1,000 a year, and it will lead to $250,000 over 40 years at the standard 8% return on the stock market.

Disclaimer: The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.