What are the 3 common investing myths? Do you succumb to these myths or chart your own investing path? Don't let these investing myths prevent you from investing successfully.
1. Investing on your own is very risky.
Investing on your own is only risky if you don't know what your are doing. Investing is only risky if you are speculating. My value investing approach is simple, easy to implement, and requires you to take on very little risk. I can show you how to reduce all of the 6 major risks that you will encounter when investing on your own.
2. Investing on your own is complicated.
Investing on your own isn't complicated, and you don't need a degree in finance or accounting in order to be a successful investor. I've worked with people from 14 years old to 60 years old from all different back grounds, and they are able to invest successfully on their own. I take the complexity out of investing, when I teach I remove the financial jargon, and show you step-by-step how to investing successfully on your own. Here is a great quote from one of the greatest investors of all time Peter Lynch, "Twenty years in this business convinces me that any normal person using the customary three percent of the brain can pick stocks just as well, if not better, than the average Wall Street expert."
3. Investing on your own is time consuming.
Investing on your own isn't time consuming. This is one of the biggest myths in the financial world. If you are doing day trading then yes, it will take time, lots of time. But I don't advocate day trading. The majority of my students have full-time jobs and kids, so they don't' have hours and hours to spend on stock research. You only need to spend time when you are ready to invest. So if you don't have money to invest for 3-6 months, then there is no need for you to research which stocks to buy during that time period. I give my students two choices, choice #1: Do it Yourself, and choice #2 Do it Yourself With Using Resources. Choice #1 requires about 1-2 hours of your time but only when you are ready to invest (buy stocks). So if you only buy 3 stocks a year then your total time commitment will be about 3-6 hours for the entire year. Choice #2 requires about 15 minutes of your time, and again only when you are ready to buy stocks. Both choices #1 and #2 will net the same result, but I've given the choice to satisfy the die-hard do-it-yourself detail-oriented folks out there. On average most of my students spend about 15 minutes a month on their investments.
You can become a successful investor as long as you do not succumb to these investing myths.
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