Not a secret that there are a lot of investor myths. It happens due to the reluctance of people to understand the topic, so they believe it’s true. But are they right? Let’s figure it out. We decided to tell you about the most common misconceptions about investing and prove that these are just myths.
A bro doesn’t need a pro
Almost every new investor thinks that they’ll cope with the investment himself and he doesn’t need any advice, in case of doubt he’s able to use the Internet. In fact, you’ll need the help of a portfolio manager or financial advisor, as any long-term investment requires well-considered decisions, and if you aren’t a pro, then you may need a bro.
‘The right’ investing age
Do you know what the right investing age is? No? We neither.
Some people say, ‘I’m too old for putting money’ or ‘I’m too young for putting money’. We hope you aren’t one of them, as it isn’t true. Age may only affect your investment goals, strategy or risk profile. If you’re young, you have the opportunity to profit from compound interest, and your main resource is time (we’ll talk about it later). With it, you have more chances to recover from potential losses and more opportunities to get investment education in order to avoid them (losses obviously). If you consider yourself as the old one, then you’re able to invest, for example, in order to get a higher profit than the amount that the savings account offers you. Remember that at any age you shouldn’t put all your money to the last penny, as this may cause financial difficulties.
No time to invest
It’s believed that investing is a big deal. Well, it’s true, but it doesn’t mean that it’ll take a lot of time. It’s helpful to take the time to do a little market research before your first investment. And then your time will depend only on the goal and strategy.
Often we justify our passivity to something by the fact that we have little time. But in reality, you simply don’t have the desire or motivation to do it. You’re on this site and reading this article – congratulations, everything is ok with your motivation. As you know, doing simple things is much easier than hard ones. So investing is easy.
You can try to use the Orca app with its convenient features such as:
- education and investing tips sectors, where you’re able to find out all the answers on your questions (if you don’t, you can ask in the support chat);
- trailing stop, which can help to protect your investment from losses;
- postponed order will give you the opportunity to put the money even when the exchange is closed;
- breakdowns: you’ll get detailed insights into your portfolio;
- thematic collections of assets, which allow you to try a thematic investing.
Stocks are the most popular thing to put money in, but there are other types of investment products. For example, exchange traded funds, or ETFs. They’re suitable for different investors, including beginners. ETFs are similar to mutual funds, but listed on an exchange and have the trading behaviour of stocks. And so diversification enters the chat to help manage risk. In addition, you can put your money in bonds, mutual funds, as well as physical objects such as real estate, cars or even collectible card games. It’s not only about stocks.
It is a kind of gambling story
There is no guarantee in investing, so some people think of it as gambling, but it isn’t. Of course, success in investing depends on many factors and risks, so don’t forget about them at the moment when you make a calculated decision to become an investor. Nobody knows where this will lead you. Analytics, facts, economics and market behaviour – this is the basis of investments, in contrast to gambling.
We have disproved 5 myths about investment, but, unfortunately, there are many more. Don’t let them get in the way of your financial goals. Learn to separate facts from fiction to be successful. You need to understand one thing – investing is not scary or difficult. There is always someone who can help you and give efficient advice. To prevent risk, read daily news straight from the stock markets (for example, in the Orca app). Anyone can be an investor regardless of age or lack of special knowledge.
|As with all investing, you may get back less than you put in. Your capital is at risk. Be sure to conduct research on stocks that you want to invest in. If you are unsure of this you should seek advice from a professional advisor. Orca does not provide investment advice.
Orca is an appointed representative of RiskSave Technologies Ltd, which is authorised and regulated by the Financial Conduct Authority (FRN 775330).
The above information does not constitute any form of advice or recommendation by London Loves Business and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Appropriate independent advice should be obtained before making any such decision.