It’s without a doubt that everyone wants to be above average when it comes to matters to do financial investment. However, not everyone is willing to do what it takes to be good. No wonder it’s quite common to come across investors who seem to be struggling almost every time.
You might think that opening wealth beyond wall street journal and picking up stocks like the best investors in the world will ensure you attain your financial goals. However, this is far from the truth since there is more to it than meets the eye. That said, today we will take you through some of the investing myths that you know to be true. Keep on reading to find out more.
Buy and Hold is the Best Strategy
A couple of years back, the buy and hold strategy would have worked perfectly well when investing your finances. And this does not come as a surprise since the market went up during that period. Things have however taken a different direction since the buy and hold strategy is just not an all-weather strategy. In short, it is quite hard for investors to time the market when relying on this strategy.
You Have to Invest in Stocks to Grow Your Wealth
Most investors tend to think that the only way to grow their wealth is by investing in stocks. To them, this is the only way they can avoid losing purchasing power to inflation. Even though there is some truth in this, it is another half-truth. Keep in mind that this statement makes a lot of assumptions that may eventually end up working against you.
It is for this reason that you need to do your homework before investing your hard-earned money. Remember, one of the best rules of investing is to do nothing. Of course, this is unless there is something to do. Through this action, you will not have to worry about making mistakes that will prove costly in the long run. Better, this is one of the perfect opportunities to keep your finances in check.