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Top 3 Myths About Investing

3 min read

Inflationary processes in the world gave impetus to the development of investment. Many began to realize that money “under the mattress” or on a deposit in the bank eventually lost value. However, like with any new activity from creating the first Woo Casino login to parachuting, it’s scary to go to the stock exchange and buy financial instruments for the first time – what if they cheat and take away the last. For those who want to invest but still have doubts, we have compiled a selection of the most common myths and arguments that will help to debunk them.

Investments Are Difficult

Indeed, people have a strong stereotype of the investor. Many people think of him as a person surrounded by monitors that show running charts of stock prices. He is immersed into exchange trade 24/7, he doesn’t eat or sleep, he just works, analyzes, forecasts, sells, and buys. However, the investment project can be easier, completely different. There is a strategy, perfectly suited for beginners, at which participation of the investor in the process is practically not required. It’s called passive.

To use it, it’s enough to choose a few reliable companies, buy their shares or bonds. Of course, you cannot buy “at random”, you must analyze the financial performance of the organization, the amount of dividends paid in recent years, the timeliness of coupon payments, the forecasts of experts on the yield. If you have doubts about the choice – you can always consult with brokers. That way you will collect the most reliable securities in your portfolio and receive regular income (dividends or interest). Of course, in this case, it’s unlikely to get rich like a dream, but the risks are minimal, and the profit will definitely be higher than the rates on deposits. 

You Must Be Rich

This statement is ambiguous. Of course, the instruments on the market are different. There are some types that cost millions of dollars. However, no one is forcing you to buy them. If you want to become the owner of the most expensive and profitable instruments, you can buy ETF shares. In this case, the investor automatically becomes the owner of the instruments contained in its portfolio, only in the weight share of his investment.

It’s easy to find securities on the market with an entry threshold of a few dollars. Of course, everyone understands that income will depend on the amount invested. As you can see, you don’t have to be rich, but there is one mistake that often leads to disappointment. It’s investing borrowed funds or the latter, the loss of which is tantamount to financial ruin. Start with small amounts, try investing in different instruments. That way you will find your rhythm and start to increase your capital. The long road starts with small steps. So, you should not be afraid. It’s better to try.

I’m Not at That Age

Such words can often be heard from retirees. Having saved “for a rainy day” an insignificant amount, they are doomed to watch as savings “eat up” inflation. If you are able to work with a computer, you know what the site is, go ahead without hesitation. It’s never too late to start mastering the skills of competent handling of money, their accumulation and multiplication. It doesn’t matter if you are 40, 50, 60 or 70, if you have a goal, you need to go for it. Check your risk profile (risk attitude), choose reliable instruments and a broker. The main thing is to start, even if it is small.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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