Avoid Misconceptions When Investing
When thinking about stocks, there are many misconceptions one may have about investing in them. Usually, mistakes from misconceptions are easily corrected, but when money is involved in the mix, these mistakes can lead to big losses. This article is to help you ensure that you do not have these disastrous misconceptions.
The first and most glaring misconception about investing in stocks is the idea that you can have overnight success. When your financial portfolio is well-established, and you made good decisions, there will be instances when you could earn hundreds on a daily basis. But doing so requires a lot of market study and patience. And if you try to get a quick buck, then your capital will burn out right before your very eyes.
Now, on to my next point: When trying to earn big and fast, some people invest everything they have on the first good deal they come across. You don't have to put all your eggs in one basket! Even the best experts in stock will see the occasional loss of funds; it's a good idea to just see a small percent of your investment disappear. Wouldn't that be better than see them all vanish in one bad day? It can happen.
While the next one isn't really much of a misconception, it's still not advisable, anyway. There's the idea of being able to handle stocks on your own without a capable broker. While this is indeed possible, I wouldn't recommend it, especially to first-time investors. Trading is not to be taken lightly, and the experience of qualified investors will be priceless in helping you from making bad decisions at the start.
Finally, I would like to mention that the current economical instability does not mean that this is the worst time to invest in stocks. On the contrary, it may be a good idea to buy stocks while they're at their cheapest. It could be a good long term investment, but like all things must be considered carefully. - 23222
The first and most glaring misconception about investing in stocks is the idea that you can have overnight success. When your financial portfolio is well-established, and you made good decisions, there will be instances when you could earn hundreds on a daily basis. But doing so requires a lot of market study and patience. And if you try to get a quick buck, then your capital will burn out right before your very eyes.
Now, on to my next point: When trying to earn big and fast, some people invest everything they have on the first good deal they come across. You don't have to put all your eggs in one basket! Even the best experts in stock will see the occasional loss of funds; it's a good idea to just see a small percent of your investment disappear. Wouldn't that be better than see them all vanish in one bad day? It can happen.
While the next one isn't really much of a misconception, it's still not advisable, anyway. There's the idea of being able to handle stocks on your own without a capable broker. While this is indeed possible, I wouldn't recommend it, especially to first-time investors. Trading is not to be taken lightly, and the experience of qualified investors will be priceless in helping you from making bad decisions at the start.
Finally, I would like to mention that the current economical instability does not mean that this is the worst time to invest in stocks. On the contrary, it may be a good idea to buy stocks while they're at their cheapest. It could be a good long term investment, but like all things must be considered carefully. - 23222
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posted by X - Men @ 6:16 AM
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