Myth 1: You need a lot of money to get started.
First of all, you can start investing with as little as $100 if you want. Smaller amounts are the smart way of going about it when starting your investment portfolio. Most importantly, develop and test a strategy before diving into bigger investments. With $100, it is enough to see if a strategy will work for small profit gains. The people who usually believe this myth think that once they get started they will make lots of money. Therefore, this myth is for the people who usually don’t have a financial foundation and don’t have a true understanding of their assets and liabilities.
When you know how your money flows on a monthly basis, then you will start understanding what investing your money does because you are currently working for money instead of your money working for you. If you make realistic goals and know how much you can earn within a period of time you won’t have a hard time starting at $100. You can also put $100 into a lot of other things that can grow your money and with the profit of that you can turn around and put that money into the financial market like forex or stocks.
Myth 2: Investing your money is very difficult.
Investing money can be difficult because you don’t know what you are doing. If you know what you are getting into and know what type of return to expect than investing can become easier. If you are coachable, I can help you learn how to invest within forex. Also if you are going into different markets make sure to find a mentor, coach, or consultant to help you along the way. To also make investing easier, it is important to develop an investor’s mindset. If you were to ask Warren Buffet if investing money is difficult, he would more than likely say no. That’s because he is knowledgeable and knows what to look for before investing. You need to have the same mindset where you lay everything out and know the good and bad with investing into anything. When you develop a solid game plan, investing can become a lot easier because now you know what to expect whether good or bad.
Myth 3: Investing is too risky because the market is rigged and the big banks will always continue to profit.
Big banks have been around before any of us has been around. There is no getting around that, but investing is not all about the banks. With trading currencies, it is dependent on the supply and demand of a certain exchange rate. With stocks, you are looking to see how a company is growing. Investing is always risky but with knowledge, you will know how to manage losses and maximize potential profits. Some markets can be rigged or fraudulent, so be careful before you invest your money. Make sure that you do your research about everything before you place real money into it. Things that I look for include:
- Make sure the company is registered correctly with local government or state?
- What is the business plan or model?
- Who else is investing in the company (volume and other companies)?
- What value does the company bring to shareholders and customers?
- Make sure the market is making movements.
- See if there are any huge news that could affect the market (Forex Factory).
- What is the volume of people who are trading a certain currency?
- What is my ROI (Return of Investment)?
- Is it beneficial for me to invest in it?
- What is the plan or idea that will be executed?
Hopefully, this has helped with debunking some of the myths that go around the idea of investing. Investing does not have to be risky if you have the knowledge. It is also not as difficult as you may think and you do not need a lot of money to get started. Now that you have a better idea of what to expect I want to help you take the next step. If you are looking to start investing, I am helping individuals become comfortable with investing within the Forex market. Visit my Forex Trading page and fill out your info to get started. Other than that, if you are getting started with your investment portfolio or been investing for a while, be sure to leave feedback on if this info was useful.